Safaricom Faraja Loan is a new product the company says will allow customers to access up to 100,000 shillings loan to purchase products without any interest charges.
The facility comes at a time when there is an increase in the cost of living due to the current high prices of basic commodities.
Faraja is one of the many lending products that Safaricom has in the market. Among the earlier ones include both Mshwari and Fuliza. With the previous products recording major success, there is also an expectation that Faraja will succeed.
How to Access Safaricom Faraja Loan
To access the product, you need to be a Safaricom customer and a regular M-PESA user.
Step 1: Dial *799# and select opt-in. This acts as the registration process and opting in means you have given consent for registration.
Step 2: Chose either Buy goods and services or paybill as the payment method. For the buy goods option, you need to put in the till number. For the paybill, you should input both the paybill number and account number.
Step 3: Complete the payment. Upon making the payment, you will receive confirmation of whether it’s successful or not.
Your Faraja limit will be determined by the M-PESA transactions history. Hence, you need to be an active customer on the platform to get higher limits.
Although the limits the loan is free of any interest, the normal transaction charges apply.
The loan has a loan tenure of 1 month. This means that you should pay for the advance within 1 month of using it. Failure to do so will count as a default.
Conclusion on Faraja Loan
The product is a key indicator that the Kenyan financial market is evolving with technology taking the driver’s seat. A huge number of Kenyans using mobile money services is also an enabling factor in rolling out such a product.
Finally, the product aims to empower Kenyans in accessing the necessities during the current hard financial environment.