Fuliza loan is a type of unsecured personal loan that is disbursed without relying on the borrower’s assets for security. Fuliza loans are approved based on the borrower’s creditworthiness. Therefore, these types of personal loans are easy, fast, and instant to apply for and get approved because they do not require collateral or paperwork. The Fuliza Loan is an overdraft loan that occurs when there isn’t enough money in an M-Pesa account to cover a transaction or withdrawal.

Fuliza M-Pesa loans are referred to as emergency soft loans that are used for personal uses such as home improvement, medical expenses, debt consolidation, and other personal expenses. This lender is a mobile banking lender that uses machine learning systems to understand customer’s financial capacity. The algorithm then uses data from the user’s devices to check and calculate credit limit.

Are Fuliza Loan and M-Shwari Loan the same thing?

No. Fuliza and M-Shwari are not same thing; however, both loan products are disbursed by the same mobile service provider, Safaricom PLC. Fuliza Loan is a partnership between KCB Bank of Kenya, Safaricom PLC, and NCBA Bank. The loan product is therefore an overdraft loan but an unsecured loan that allows M-Pesa users to complete transactions if their account has insufficient funds. M-Shwari Loan is a loan service that is disbursed by two entities: Safaricom PLC and NCBA Bank of Kenya. The Fuliza loan has its terms and conditions, separated from M-Shwari loan terms and conditions.

How does a Fuliza loan work?

Fuliza allows M-Pesa users to overdraw from their M-Pesa account when they have insufficient funds to complete a transaction. Fuliza Loans operates by underwriting and disbursing loans to M-pesa users based on their ability to pay. It means that even if you have low credit score, you still get approved for the loan. During registration process, Fuliza reviews the borrower’s personal details, such as monthly income, residential area, and household. The data collected by the mobile service provider is used to create a customer profile.

Below is a summary table for Fuliza loan features, such as fees charged on loan, loan amount, credit limit, annual percentage rate (APR), loan repayment terms, origination fees and processing fees and charges, loan disbursement method, speed, eligibility criteria of Fuliza loan, pay bill number, contact details, loan purpose, and approval process. All these concepts are important to understand before applying for any personal or unsecured loans.

Key Takeaways:

Feature	Details
Loan Type	Unsecured Overdraft loan
Fuliza USSD code	234# or 334#
Loan term	The shortest duration is 1 day, and the longest is 30 days.
Loan Disbursement decision	It takes less than 1 minutes to get the loan
Interest Fee Range	No traditional interest applies to Fuliza loans however, daily maintenance is charged.
Processing Fee Range	0%
Fuliza Loan Limit Range	KSh 100-KSh 70,000
Fuliza Customer Care Contacts	Telephone: Call 100 (Free) Or +254 722 002100 (chargeable) or 200 (Free) Or +254 722 002200 (chargeable). WhatsApp: 0722000100 Email: [email protected] or [email protected]
Fuliza Paybill No.	Fuliza has no paybill number

Expert Tip Note

Expert Tip:

Unsecured personal loans often come with higher interest rates and additional fees compared to secured loans.

Check Out Most Preferred Personal Loans

How to activate Fuliza loan

Activating Fuliza loan involves opting into the loan services. Activation of Fuliza account involves registering for Fuliza. The process involves creating and opening a customer profile with NCBA Bank and KCB Bank by sharing personal details with the banks behind the personal overdraft loan service.

To activate Fuliza account, Dial *334#>>Select Loans and Savings>>Select FULIZA>> Choose “opt in” and accept the terms and conditions.

Why Fuliza opt in failed?

The main reason Fuliza opt in failed is because there may be a temporary technical issue with the Fuliza service. If there are technical issues with the Fuliza service, try opting in again later.

Is Fuliza a legit loan? Yes, Fuliza is a legitimate overdraft loan that is regulated and controlled by Safaricom PLC in partnership with NCBA Bank and KCB Bank. The overdraft loan disburses quick and easy loans to borrowers without collateral.

Why is my Fuliza loan limit not activating? There are two main reasons why your Fuliza credit limit is not activating. One reason is that your line is new and needs to be activated first. Secondly, your Safaricom customer registration process is underway. Therefore, you will need to wait for some time. However, if the activation declines completely, call 100 (free) or +254 722 002100 (chargeable) or 200 (free) or +254 722 002200 (chargeable).

How to opt out of Fuliza

Opting out of Fuliza services involves deactivating and deleting Fuliza accounts permanently. To opt out of Fuliza loan services and delete your account completely, Dial *334#>>Select Loans and Savings>>Select FULIZA>> Choose “Opt Out” >> Select “Yes”. If you want to proceed with deactivating and deleting your Fuliza account, ensure that all outstanding loan balances are settled before requesting account closure.

To opt out of Fuliza and deactivate account completely you should follow these steps: Dial *234#>>Select Fuliza M-Pesa>> Choose “Opt Out” >>Select “Yes”

What happens when you opt out of Fuliza?

Opting out of Fuliza services involves deleting or deactivating your account. Hence, when you opt out Fuliza, your loan limit will reset to zero when you next opt in. When you opt out of Fuliza, you’re essentially closing your overdraft facility. As a result, the limit associated with that facility is removed.

How can I borrow a Fuliza loan?

Borrowing Fuliza loan involves the process of applying for the loan. Hence, if you want to borrow the loan amount, you should be able to access the loan. Before you apply for or request a Fuliza loan, you need to know your Fuliza loan limit. The loan amount you can borrow from Fuliza is determined by the creditworthiness of the individual borrower. Hence, you should work on building your credit history.

A Fuliza loan is an overdraft loan that is disbursed by overdrawing excess amounts based on your loan limit. Terms such as withdraw, deposit, and send are used to mean same thing as borrowing. Hence, withdrawing a Fuliza loan, depositing a Fuliza loan, and sending the loan follow the same process. The processes of sending, withdrawing, and depositing a Fuliza loan are shown below.

There are two ways to access Fuliza loan. One way is to use the M-Pesa menu through Sim Toolkit app, while the other way is using USSD code. All these methods are shown below.

To get a loan from Fuliza via M-Pesa, follow these steps:

Go to the M-PESA menu.
Select “Send Money.”
Enter Phone number
Enter amount Plus the Fuliza loan limit amount.
Enter your M-PESA PIN.
Select “Yes” to complete loan disbursal process
The loan amount will be sent to your M-PESA account. The loan amount to be paid will be inclusive of the facility fee.

How to get Fuliza loan via USSD code

If you are unable to access the Fuliza loan from the STK (Sim Toolkit), follow these steps below:

Dial *334#
Select “Send Money.”
Enter Phone number
Enter amount Plus the Fuliza loan limit amount.
Enter your M-PESA PIN.
Select “Yes” to complete loan disbursal process
The loan amount will be deposited to another M-PESA account. The loan amount to be paid will be inclusive of the facility fee.

How to Cancel Fuliza Loan Application

Fuliza loan cancellation involves stopping the loan application process. A customer does not have to cancel a loan application under the following circumstances:

If the borrower has not completed and submitted the application,
If the borrower accepts the Fuliza offer but has not yet cashed out,

To cancel a Fuliza loan application, one should do nothing, and the loan cancellation will be processed automatically. On the other hand, you should select No instead of Yes to stop the overdraw.

Fuliza loan Fees, Charges, and Interest rates

The Fuliza interest rate involves the charges a borrower has to incur for borrowing the loan. Loan fees are charges the borrower needs to incur before and after the loan is disbursed. There are two fees you will incur when applying for a loan with Fuliza. The access fee and daily maintenance fee. Other minor charges include 20% excise duty tax, which is included in the access fee, and M-Pesa withdrawal charges if you intend to withdraw your loan amount or charges for sending the loan amount to another financial institution.

What is the interest rate for Fuliza loans per month?

No traditional interest applies to Fuliza loans; however, daily maintenance is charged, and a one-off access fee of 1% is charged for each loan disbursed the next day at midnight or 00.00 hrs. Additionally, Fuliza customers pay an access fee plus 20% excise duty on that fee. If repaid by midnight, they will pay a maintenance fee based on the outstanding balance.

What is the Fuliza loan maintenance fee?

A maintenance fee is a recurring charge levied by the lenders on a borrower for keeping a loan facility open and available for use. Essentially, it’s a fee for the lender to maintain the administrative and operational costs associated with the loan account, even if the borrower isn’t utilizing the full loan amount. Fuliza charges a daily maintenance fee on the outstanding balance of your loan. The amount of this fee depends on the size of your loan. Fuliza offers a free 3-day overdraft for transactions up to KSh. 1,000. Larger transactions get a 10–20% discount on daily fees. Below, Fuliza charges per day are shown:

Tariff Band	Old Daily Maintenance Fee	New Daily Maintenance Fee
1-100	0.00	0.00
101-500	5.00	Free for first 3 days, 2.50 after
501-1000	10.00	Free for first 3 days 5.00 after
1001-1500	20.00	18.00
1501-2500	25.00	20.00
2501-70000	30.00	25.00

Current Fuliza charges

How to stop Fuliza daily charges

Maintain a positive M-Pesa balance to avoid Fuliza charges. Carefully plan transactions to prevent overdrafts. If insufficient funds are anticipated, use alternative payment methods or delay transactions. Understand Fuliza terms and conditions for responsible usage. An example, of Fuliza terms involves repaying a Kshs. 1000 Fuliza loan within three days exempts you from the daily maintenance fee. However, the one-time access fee of 1% still applies.

To stop Fuliza daily charges, fully repay your outstanding Fuliza balance. You can repay through M-Pesa, Safaricom outlets, or bank transfers. While the charges stop once you repay, it might take time for the system to update.

Fuliza loan Eligibility Criteria

Eligibility criteria refer to a set of predefined standards or requirements that a borrower must meet to be considered for a particular loan. These criteria are used to determine who is qualified or suitable to get approved for the loan. For Fuliza loan offers, the eligibility criteria can vary widely depending on the context and can include factors such as income, age, transaction history, and credit score. These requirements involve the qualifications a borrower must meet to get a Fuliza loan.

What are the requirements to apply for a Fuliza loan?

Borrowers applying for Fuliza loans for the first time must check the prequalification and ensure they provide the right details. If you are applying for the loan, the following are the requirements for Fuliza loans:

The following are the requirements:

You must be a registered Safaricom user.
You must be a registered M-PESA Customer with an activated M-Pesa account
Must be an active M-PESA customer for a minimum of 6 months
You need an activated Fuliza account.

Does Fuliza check the CRB? No, Fuliza disburses loans for borrowers you have listed on the CRB listing. However, if you have been listed by Fuliza loan providers, you will not have access to Fuliza loan services until outstanding loan balances are settled.

What is the Fuliza loan limit?

The Fuliza loan limit is the credit amount the micro-credit lender can disburse based on the regulated terms and conditions in place. The loan limit Fuliza can disburse ranges from Kes 100 to a maximum of Kes 70,000. However, according to NCBA Bank, the maximum Fuliza loan limit is Kes. 100,000, while the minimum limit is Kes.100.

How much is a first loan at Fuliza?

The first-time loan at Fuliza varies depending on the creditworthiness of the borrower. This means that first-time applicants may not be eligible for higher loan limits or none because of their poor credit score. However, borrowers with low creditworthiness may be eligible for lower credit limits in the range of Kes 300 to Kes 2000 as first-time loans.

What is the Fuliza limit review cycle?

A loan limit review cycle is a periodic process undertaken by a lending institution to reassess the maximum loan amount it is willing to extend to borrowers. This review typically occurs at predetermined intervals, such as annually or quarterly. The limit review cycle for Fuliza loans takes around every 90 days for new credit limits to be assigned to borrowers.

Why is my Fuliza loan limit zero?

There are three main reasons your Fuliza loan limit is zero. One main reason is that you are a new customer; hence, new customers need to be active for 6 months before new limits are assigned. The second reason why Fuliza loan limit is zero is because the limit review cycle, which takes 90 days, has not been processed. The third major reason is because you have defaulted on the outstanding Fuliza loan balance for more than 90 days (3 months).

To ensure that the limit does stay at zero, increase your transaction history, by saving more on your M-Shwari account or using KCB M-Pesa within the 90 days before the review takes place. Additionally, avoid defaulting on outstanding loan balances. To understand more about limit increments, read this document.

Why is Fuliza not giving me a loan? Fuliza is not giving you a loan because of the following six reasons;

You are new Safaricom user with less than 6 months in activity
You have an inactive M-Pesa account
You recently activated the Fuliza account
The loan 90-day review cycle has not reached
You have low transaction history
You have low creditworthiness
You have defaulted on other mobile loans

To ensure that you are eligible for the loan, you will have to be an active M-PESA user for at least 6 months, save regularly on your M-Shwari account and continuously use other Safaricom services such as Voice, DATA and M-PESA.

Fuliza Loan Repayment Methods

Fuliza loan repayment involves the process of paying back money borrowed from a lender according to the terms agreed upon in a loan contract. This process involves a series of regular payments, often monthly, that cover both the principal amount (the original sum borrowed) and interest (the cost of borrowing the money). Loan repayment methods refer to the various strategies and schedules borrowers use to repay their Fuliza loans. There’s no specific code or menu option for direct Fuliza repayment. Below is a list of ways to pay your Fuliza loan balance:

M-Pesa: Dial *234# and follow the prompts.
Safaricom outlets: Visit a nearby Safaricom shop.
Bank transfers: Transfer funds from your bank account to your M-Pesa.

How to pay Fuliza loan via M-Pesa

To repay your Fuliza loan using M-Pesa, follow these simple steps:

Check your Fuliza balance: Dial *234# and select the Fuliza option to check the exact amount you owe.
Top up your M-Pesa account: Ensure you have sufficient funds in your M-Pesa account to cover the entire Fuliza loan amount and any applicable charges.
Automatic repayment: Any funds you deposit into your M-Pesa account will automatically be used to settle your Fuliza loan

How to pay Fuliza loan with bonga points

M-Pesa users with outstanding Fuliza loan balances can leverage the bonga points services to clear the loans. To clear your loan balances using Bonga points, follow these steps: Go to phone app, Dial *126#, select “Lipa Fuliza” ensure you have enough bonga points to pay for Fuliza balances, for example, to pay a Fuliza loan balance of Kes 500 you need 2500 bonga points.

How to pay Fuliza loan for an old/lost line

Can you pay outstanding fuliza loan balances on old and other lost line? Yes. To pay Fuliza on old or lost line, follow these steps below:

Dial *234#
Select “Fuliza M-Pesa”
Choose “Pay Fuliza loan on old line
Enter old Phone number
Enter ID Number on Old line
Enter Outstanding loan amount
Enter M-pesa Pin and Press send

Can I borrow immediately after paying Fuliza? Yes, you can instantly request another loan on the Fuliza menu after you finish paying an outstanding loan.

How to pay M-Shwari loan using Fuliza

Fuliza Loan and M-Shwari Loan are two different micro-loan products. M-Shwari is a banking service that can be accessed through a mobile phone. M-Shwari offers two types of services, which include short-term loan services and savings services. Fuliza, on the other hand, is an overdraft loan service that borrower uses to complete a transaction. Fuliza is a short-term soft loan that can be used to consolidate a loan in case you want to default on a personal loan.

Can you pay the Fuliza loan using the M-Shwari loan? No, you cannot directly pay a Fuliza loan using an M-Shwari loan. However, you will need to apply an M-Shwari loan first, then withdraw funds into your M-Pesa account from your M-Shwari account.

Can you pay a Fuliza loan via a paybill number? No. The outstanding Fuliza loan balances cannot be settled or paid using a paybill number. This is mainly because the loans are directly deducted from M-Pesa wallet balances, which is an easy repayment service.

How do I check my Fuliza loan balance?

There are two ways to access the loan balance from Fuliza account using the USSD codes. The two USSD codes to access Fuliza loan balances are *334# and *234#. The steps are shown below;

To check the Fuliza loan balance using *334#, follow these steps: Dial *334#>>Select “Loans & Savings.”>>Select ‘Fuliza’ menu>>Select ‘My Fuliza Balance’

To check the Fuliza loan balance using USSD *234#, follow these steps: Dial *234#>>Select “Fuliza M-Pesa.”>>Select ‘My Fuliza Balance’

Consequences for Defaulting on Fuliza Loan

Fuliza Loan default occurs when a borrower fails to meet the legal obligations or conditions of a loan agreement. This typically means that the borrower has not made the required payments on time or has stopped making payments altogether.

What is the Fuliza loan default period?

Loan default period involves the time when loan repayment has expired. This is an overdue date after an outstanding loan balance has failed to be settled by the borrower. Fuliza loan default period is 120 days. Failure to settle the Fuliza amount utilized in 120 days will lead to a negative listing by credit reference bureaus.

What happens if I default on a Fuliza loan?

If you default on Fuliza-disbursed credit, daily maintenance charges continue to apply. Your Fuliza loan limit reduces. The creditors offering Fuliza loans can submit a negative listing to credit reference bureaus, which can affect your credit score.

What are the consequences of late Fuliza loan repayment?

There are four consequences to face for late repayment of the Fuliza credit disbursed. The consequences a borrower may face are listed below:

Additional Fees: You will be charged daily maintenance fee for the period that the loan remains unpaid.
Loan Limit Reduction: Repeated late payments can result in a reduction of your Fuliza credit limit.
Credit Bureau Listing: Persistent default on loan repayment can lead to your name being listed on the Credit Reference Bureau (CRB), negatively impacting your credit score. Failure to settle the Fuliza amount utilized in 120 days will lead to CRB listing.
Loss of Access to Fuliza Services: In severe cases of default, your Fuliza account might be closed, preventing you from accessing any of its services.

It’s crucial to repay your Fuliza loan on time to avoid these penalties and maintain a good credit history.

How long can I delay Fuliza loan repayment before penalties?

You should repay Fuliza loans 3 days before the daily maintenance fee starts to apply to loan amounts below Kes 1000 only. Fuliza doesn’t offer formal loan extensions. If you don’t repay the loan within 3 days, the loan is automatically rolled over for another 30 days. For the rollover period, you’ll be charged an additional daily maintenance fee on the outstanding loan balance. Successive rollovers can lead to a significant increase in the total amount to be repaid due to accumulated maintenance fees. Consistent delays in repayment can negatively impact your credit score, making it difficult to access future loans.

Is there a grace period for Fuliza loan repayment?

No, there is no formal grace period for Fuliza loan repayments. The loan repayment period is typically 30 days from the date of disbursement. If not repaid within this period, an additional maintenance fee is charged, and the repayment period is extended by another 30 days.

What is the interest rate on a defaulted Fuliza loan?

There is no interest rate on a defaulted Fuliza loan. Instead of interest, Fuliza charges a one-time facilitation fee when you take out a loan. This fee is a percentage of the loan amount. Hence, If you default on the loan, you don’t accrue additional interest.

Does Fuliza report loan defaults to credit bureaus?

Yes, Fuliza reports loan defaults to credit bureaus.
M-Shwari does report loan defaults to credit bureaus. This means that if you fail to repay your Fuliza loan within the agreed-upon timeframe, your information could be shared with credit reference bureaus, which can negatively impact your credit score.

Can I negotiate an extended repayment period for Fuliza?

Unfortunately, as of now, Fuliza doesn’t offer a formal negotiation process for extending loan repayment periods. The loan terms, including the repayment period, are typically fixed when you accept the loan offer.

What is the maximum loan amount allowed after a Fuliza loan default?

The maximum loan amount allowed after a Fuliza credit default is typically significantly reduced.

Here’s a breakdown of how Fuliza usually handles loan defaults and subsequent loan limits:

Loan Default: If you default on a Fuliza credit, your credit score is negatively impacted.
Reduced Loan Limit: As a result of the lower credit score, the maximum loan amount you can access will be reduced.
Gradual Increase: Consistent timely repayments on subsequent loans might lead to a gradual increase in your loan limit

Fuliza loan CRB Clearance

CRB clearance refers to the process of clearing one’s name from the CRB after being listed as a defaulter.

What is the process of clearing a Fuliza loan from the Credit Reference Bureau (CRB)?

The process of clearing a Fuliza loan from the Credit Reference Bureau (CRB) is indirect.

Repay the Outstanding Loan: The first step is to ensure you’ve fully repaid your Fuliza loan, including any accrued fees.
Confirmation of Payment:
After the repayment, confirm the payment. The lender will provide confirmation via SMS or update in the Fuliza account.
Automatic Update: Once the stipulated period has elapsed and the loan is fully settled, the CRB system is automatically updated to reflect this change.
Request for Clearance:
Contact Fuliza customer care or visit a Safaricom or CBA branch to request CRB clearance. Include proof of loan repayment.
Issuance of a Clearance Certificate:
The lender will update CRB records. After this, a CRB clearance certificate will be issued as proof that the default is cleared.
Check CRB status:
Check with the CRB to ensure records are updated. Contact the CRB directly or use their online platforms.
Time Lapse: There’s usually a waiting period, typically between 30 and 90 days, after full repayment for the loan information to be updated on the CRB system. This timeframe can vary depending on the specific CRB.

How long does it take to clear a Fuliza loan from the CRB after full repayment?

The timeframe for clearing a Fuliza loan from the Credit Reference Bureau (CRB) after full repayment is typically 30 days. However, it’s essential to note that this is a general guideline, and the actual process might vary slightly. Factors like the specific CRB, any system updates, or unforeseen circumstances could influence the exact duration.

To confirm the exact timeframe and for any updates, it’s recommended to contact Safaricom’s customer care or refer to the official Fuliza terms and conditions.

What are the specific requirements for clearing a Fuliza loan from the CRB?

Full Repayment: Ensure that the entire loan amount, including any accrued fees, is fully paid off.
Repayment History: Maintain a consistent and positive repayment history on other loans and financial obligations.
Time Lapse: There might be a specific waiting period after full repayment before the loan is automatically cleared from the CRB. This period varies by financial institution and CRB policies

Are there different criteria for clearing Fuliza loans based on the loan amount or repayment history?

The criteria for clearing a Fuliza loan from the Credit Reference Bureau (CRB) are not directly tied to the loan amount or repayment history of a specific loan.

The process involves:

Full repayment: ensuring that the entire loan amount, including any accrued interest and fees, is cleared.
Timeframe: Allowing a specific period (often determined by the CRB) to pass after full repayment.
Credit bureau dispute (if necessary): If the clearance is delayed, disputing the negative information with the CRB.

What are the available channels to initiate the Fuliza loan CRB clearance process?

In Kenya, there are three major CRB agencies (such as Metropol, TransUnion, and CreditInfo). Ensure that your clearance request is processed across all relevant agencies.

Can I clear a Fuliza loan from the CRB through the M-Pesa platform?

No, you cannot directly clear a Fuliza loan from the CRB through the M-Pesa platform. While M-Pesa is used to access and repay Fuliza loans, it doesn’t have the functionality to interact directly with the Credit Reference Bureau (CRB) to remove a negative listing.

Are there any associated fees or charges for clearing a Fuliza loan from the CRB?

There are no direct fees associated with clearing a Fuliza loan from the Credit Reference Bureau (CRB).

Once you have fully repaid your Fuliza loan, the lender (Safaricom) is obligated to report this positive payment history to the CRB. This process takes 30 to 90 days, but it’s generally a standard procedure that doesn’t incur additional costs for the borrower.

How long does it typically take to see the CRB clearance reflected after initiating the process?

The time it takes to see a CRB clearance reflected after initiating the process can vary. Generally, it can take anywhere from a 30 days to 90 days for the CRB to update your record. Several factors influence this timeframe, including:

The specific credit reference bureau (CRB) involved: Different CRBs might have different processing times.
The lender’s efficiency in submitting the clearance request: Timely submissions can expedite the process.
The volume of clearance requests being processed by the CRB: High volumes might lead to delays.
Any technical issues or system glitches experienced by the CRB or the lender.

What are the legal implications of not clearing a Fuliza loan from the CRB?

It’s crucial to consult with a legal professional for advice specific to your situation.

Fuliza History and Owner

Fuliza is a swahili word that was derived from verb “Mfululizo,” which means ‘continuously flowing.’ Fuliza was launched in January 2019 by the Kenyan largest telecommunications company Safaricom PLC and two of Kenya’s largest banks, NCBA and Kenya Commercial Bank Limited (KCB). The facility is embedded within MPESA with an opt-in, with limits determined by a credit score and M-pesa inflow behaviour.

Can you Fuliza Airtel money?

No, you cannot Fuliza Airtel Money. Fuliza is a product exclusively offered by Safaricom for its M-Pesa customers. It allows users to complete transactions even when their M-Pesa balance is insufficient. Airtel Money, being a product of a different mobile network operator, does not have a similar service