Safaricom faraja loans - complete details

Safaricom faraja loans is a facility available to M-PESA users which enables them to buy goods on credit via Lipa Na M-Pesa.

In this article I will give all and complete details which you might be looking for before using faraja loan service provided by the largest Telco in the country. Continue reading below.

Faraja Loans Terms and Features

The facility is only available to someone who needs to buy goods via Lipa Na MPesa from a participating merchant. It's like buy now pay later.

Each customer will have his or her own faraja loans limit. This depends on the customer's credit score. 

Here are safaricom faraja loans interest rates and loan limits;

Safaricom Lipa Na MPesa

Safaricom faraja loans
Loan Feature Description
 Loan Limits  KES 20 - KES 100,000
 interest Rate  zero ( 0%)
 Loan Tenure  30 days 

As said earlier, each customer will be assigned a maximum loan limit. The minimum is KES 20 while the maximum is KES 100,000. A customer with a zero faraja loan limit will be deemed illegible. 

Faraja Loans have zero (nil) interest charges. This is what makes this facility different if we can try to compare this with other products from Safaricom like Fuliza, KCB-MPESA, M-Shwari and Halal.

The repayment duration is 30 days. This is very similar to Fuliza, KCB-MPESA, M-Shwari and Halal. This means after buying the item using faraja loan, you will have 30 days to make the payment.

Who qualifies for Safaricom faraja loans 

Faraja loans are available for use by any M-Pesa customer. However,if a customer is awarded a faraja limit of zero, that customer cannot use the service.

Customer with a low (bad/ poor) credit score are not eligible. This wis because automatically their faraja limit will be zero. 

If by any chance a customer is blacklisted by the CRB ,he or she will not be able to use the service.

How to Opt In Faraja Loans 

You will have to dial used code *799# and select ' Opt In'

How to Buy Goods with Faraja Loans 

Eligible customers can buy goods using faraja loans via Lipa Na MPesa menu. 

While at the participating merchant, a customer will be provided with the merchant till number and the cost of the item(s) to be purchased. 

Customer will proceed to accept that he or she is paying using faraja loan after which the transaction will be complete. 

The process is almost similar to Fuliza.

How to Pay Safaricom Faraja Loans 

The repayment duration is 30 days. Customers with active faraja loans will be able to make payment via the mpesa menu through SIM toolkit, MPesa App or ussd code *799#

Participating Merchants 

Safaricom faraja loan service will only be applicable to participating merchants. These may be available on the MPesa menu and on the shopping stands there will als be the faraja accepted signs.

Participating Companies 

Faraja service involves three partners. They include Edmox , Safaricom and Equity Bank.




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