5 reasons why Fuliza is the best money lending option for you

The more you use Safaricom services such as MPesa and Fuliza, the greater your credit score becomes. [iStockphoto]

Fuliza, introduced in 2019, has climbed the ranks of money-lending service options and now holds the top spot, toppling services such as MShwari and KCB MPesa. The service was underwritten by KCB and NCBA and was meant to be used for a duration of four to seven days. However, it has since developed a life of its own, with users taking an over-draft for up to two weeks. This, coupled with the recent reinstating of the bank to MPesa charges means that Fuliza has gotten many Kenyans out of a pinch at least once or twice.

Here are five reasons Fuliza remains the best go-to money lending service.

1) 50% reduction in maintenance rates

A customer usually gets charged a one-off 1% access fee and a daily maintenance fee is applied the next day at midnight or 00.00 hrs. This maintenance fee depends on how much money has been borrowed, ranging from five shillings to thirty shillings. This may seem negligible but compound that daily and it becomes quite a sizeable amount. Haba na haba hujaza kibaba, as the Swahili say.  Recently, this tariff has been slashed in half, making it infinitely cheaper to repay overdue Fuliza loans.

Fuliza loans of between Kshs.101 to Kshs.500 will attract a daily fee of Kshs. 2.50, down from Kshs. 5. Whereas Fuliza loans of between Kshs. 501 Kshs. 1,000 will now be charged a daily fee of Kshs. 6, down from a previous fee of Kshs.10.

2) Waiver on maintenance fees for the first 3 days

In addition to the 50% slash, customers who borrow anything less than 1,000 Kshs enjoy a 3-day grace period before the maintenance tariffs kick back in. All Fuliza customers who have a positive limit and no outstanding balance will benefit from the new tariff.

3) Ability to withdraw cash

Since its inception, you could only transact money electronically, meaning there was no way to withdraw money from Fuliza. Businesses used to circumvent this little bump in the road by having a separate phone number where customers could overdraft money provided, they added the withdrawal fees, something that will no longer be necessary.

In addition, one can use Fuliza to pay for goods and services via any Lipa na Mpesa option, a plus for both business owners and their customers.

4) Freedom to opt-in and out

For some people. Reliance on Fuliza is something akin to an addiction. However, it is as easy to opt out of Fuliza as it is to opt-in.

How to opt-in:

  • Dial *334#
  • Select Loans and Savings>> Select FULIZA
  • Opt-in

How to opt out:

  • Dial *234# on your phone.
  • Reply with 0 for Fuliza M-PESA.
  • Select Opt-out by replying with 7.
  • Confirm that you want to opt out of Fuliza by replying with 1.

5) Ability to better your credit score

The more you use Safaricom services such as MPesa and Fuliza, the greater your credit score becomes. You can increase your Fuliza limit up to Kshs. 70,000. However, if you take too long to repay a loan, you reduce your Fuliza limit and it can take time to build it back up.