Fuliza which is a service introduced by Safaricom is an overdraft lending product offered by M-Pesa. The service enables Mpesa subscribers to complete their Mpesa transactions even when they have insufficient funds in their M-Pesa accounts.
For example if you buy an item and you have insufficient funds in your Mpesa, Safaricom will cover the rest and deduct the rest of the amount including the facility fee also known as interest, at a later date.
Fuliza is a very convenient service because any Safaricom user with an active Safaricom line is automatically eligible to use Fuliza as long as the user is also a registered M-Pesa user.
The only ‘downside’ or limitation to Fuliza, is the fact that it has a loan limit.
In addition, the Fuliza loan limit is also determined on a merit and credit basis. What this means in a nutshell is that if you have a history of not repaying your Mshwari loans for example, then your credit rating will end up killing the possibility of you getting a larger overdraft.
Basically because Fuliza is ultimately a loan service which gives you the ability to borrow extra money on the go and also buy goods or pay for a service that is more than your M-Pesa balance, your repayment record largely determines your credit score.
However, there are two possible ways (for now), to boost or increase your Fuliza loan limit.
- The first step is by being a frequent user of the Fuliza service. The more you use the Fuliza service, the higher your loan limit becomes. This is because the frequent usage, will help you develop a credit history while also allowing the lender (which is in this case; Safaricom) to determine if you will be able to repay. Think of it like a bank where the quicker you’re able to pay back your existing loans, the higher your borrowing limit grows.
- The second step is to continue depositing money in your M-Pesa account. This is particularly important because as soon as money is deposited into your account, the Fuliza overdraft is immediately deducted from your M-Pesa balance. What this means if you have a history of not receiving any M-Pesa transfers or depositing money into your account, there’s a high probability that you will not be able to repay your Fuliza M-Pesa loan so deposit, deposit, deposit!
There you have it! Those are the ways to boost your Fuliza loan limit.
You are welcome :).
Remember though, that to qualify for the Fuliza service, you MUST be a Safaricom user with an active Safaricom line and of course be a registered M-Pesa user.
