Your pockets are feeling a little light. You are looking to do some shopping, but your MPESA can’t go beyond 500sh purchase (maybe 5,000sh if you are shopping for many). So, you’re wondering, what on earth will make your Fuliza loan grow? Why is it stagnant at 500sh or 1,000sh, yet you transact every day?
Well, we might have the answers for that in this article. Fuliza is a unique product, unlike the Faraja Loan that is more personalized for businesses. Read on and find out why your Fuliza loan is not growing.
Also Read: How to Get 100,000 Interest Free Safaricom Faraja Loan
How to Grow Your Fuliza Limit
So, as we promised. Here are 7 ways you can grow your Fuliza limit and “shop til you drop!”
1. Be a Frequent Safaricom User
The more you spread your wings and soar with Safaricom’s services, the higher your Fuliza limit may fly. Showing them you’re a frequent flyer and loyal customer could be your ticket to upgrading that meager limit.
2. Get Cozy with Fuliza
Why not get up close and personal with Fuliza itself? The more you use it for transactions and bill payments, the more Safaricom will see you as a ride-or-die Fuliza fan. And loyal fans get rewarded with higher limits, don’t they?
3. Pay On Time
Every Time Treating your Fuliza like a toxic ex and ghosting on repayments? No wonder your limit is staying small! Be the responsible borrower Safaricom dreams about by paying back on time, and watch your limit levels up.
4. M-Pesa: Your Transaction Bestie
Make M-Pesa your go-to money bestie by transacting left, right and center. The more you two hang out together, the more Safaricom will think “This is one solid relationship” and up your Fuliza allowance.
5. A Credit Score to Swoon Over
Having a credit score that makes lenders swoon is key to unlocking higher Fuliza limits. Avoid dodgy financial behavior, stay on top of payments and keep that debt-to-income ratio looking like fire.
6. The #234 Trick
Here’s a little hack that might (or might not) get you a bigger Fuliza allowance: Dial *234#, opt-out of Fuliza, then opt back in. Zig-a-zig-ah, higher limit? It’s a 50/50 gamble!
Why is My Fuliza Limit 0
There could be several reasons why your Fuliza limit is 0. Here are some explanations:
- New account: If you’ve recently opened your M-Pesa account or used Safaricom line for less than six months, you might not be eligible for Fuliza yet.
- Inactive account: If you haven’t been using your M-Pesa account regularly, your Fuliza limit might be reduced or set to 0.
- Poor credit history: Fuliza limits are often based on your M-Pesa usage and transaction history. If you’ve had issues with repayments in the past, this could affect your limit.
- Recent opt-out: If you recently opted out of Fuliza and then opted back in, your limit might reset to 0 initially.
- System update or maintenance: Sometimes, temporary system issues can affect Fuliza limits.
- Policy changes: Safaricom occasionally updates its policies, which could affect Fuliza eligibility or limits.
Eligibility for Fuliza Loan
To be eligible for the FULIZA overdraft service, there are a few key points to note:
- While all individuals who have activated M-PESA using a national ID card, Military ID, or Kenyan passport can request to use FULIZA, not everyone who activates the service will be immediately approved for a loan.
- M-PESA accounts created with a non-Kenyan passport will not have the option to activate the FULIZA overdraft service.
- After signing up for FULIZA, you will be assigned a limit that determines the maximum amount of overdraft you can access.
How Many Accounts Can a Person have for Fuliza?
Regarding the number of accounts one can have for the Fuliza overdraft service, there is no strict limit. Each registered M-PESA line is treated as a separate account, and you can have multiple lines registered under your name.
This means that if you have multiple SIM cards or phone numbers, you can activate the Fuliza service on each line, essentially giving you multiple Fuliza accounts.
Each Fuliza account is evaluated independently, and a specific overdraft limit is assigned to it. This limit is reviewed and potentially adjusted every three months based on various factors. These include:
- History
- Repayment behavior
- Overall financial profile
As for the frequency of using Fuliza M-PESA, you can utilize the service as many times as needed, provided that you remain within the allocated limit for each respective account. There is no restriction on the number of times you can access the overdraft facility, as long as you have not exceeded the assigned limit and maintain a good repayment record.
It’s important to note that while the service allows for multiple accounts and frequent usage, it is recommended to exercise caution and ensure timely repayments to maintain a healthy financial standing and avoid accumulating excessive debt.
How to OPT in to Fuliza
To activate and opt-in to the FULIZA overdraft service on your M-PESA account, you need to follow a simple process through the M-PESA menu on your mobile phone.
Credit – NCBA Group
Here are the detailed steps:
- Open the M-PESA application or dial *334# on your mobile phone to access the M-PESA services menu.
- From the main menu, navigate to the “Loans and Savings” section by selecting the corresponding option. This section typically lists various loan and savings products offered by M-PESA.
- Within the “Loans and Savings” menu, locate and select the “FULIZA” option.
- Once you have selected the FULIZA option, you will be prompted to opt-in or activate the service. Carefully review any terms and conditions presented, and proceed with the opt-in process by following the on-screen instructions.
- Upon successful activation, you will receive a confirmation message indicating that the FULIZA overdraft service has been enabled on your M-PESA account.
How to Opt Out of Fuliza
If you wish to opt-out or deactivate the FULIZA overdraft service from your M-PESA account, you can do so through the M-PESA USSD menu, which is accessible by dialing *234# on your mobile phone.
Follow these steps:
- Open the M-PESA menu by dialing *234# on your mobile phone’s keypad.
- Navigate through the menu options and select the option labeled “Fuliza” or option number 0.
- Choose “98” to provide more options, and then select option 7.
- You will receive a prompt with a message indicating that opting out of FULIZA will reset your overdraft limit to as low as Ksh. 0 when you next opt-in to the service. If you are certain that you want to proceed with opting out, select the option that corresponds to “Yes” or option number 1.
- After confirming your decision to opt-out, you will receive a pop-up notification from Safaricom, the service provider, confirming the action.
- Additionally, M-PESA will send you a text message confirming the successful opt-out from the FULIZA service. The message will typically read something like, “You have successfully opted out of the FULIZA M-PESA service.”
It’s important to note that opting out of FULIZA will immediately deactivate the overdraft facility on your M-PESA account. If you decide to reactivate the service in the future, you will need to go through the opt-in process again, and your overdraft limit may be reset to a lower amount or even zero, subject to revaluation based on your account history and eligibility criteria.
Fuliza Loan Fees and Tariffs Explained
Here’s a table that shows all the fees and tariffs you’ll expect to pay when you use the Fuliza service.
| Band | Tariff | 20% Excise Duty | Total Charges |
|---|---|---|---|
| 0 -100 | KSh 0 | KSh 0 | KSh 0 |
| 101-500 | KSh 2.5 | KSh 0.5 | KSh 3 |
| 501-1000 | KSh 5 | KSh 1 | KSh 6 |
| 1001-1500 | KSh 18 | KSh 3.6 | KSh 21.6 |
| 1501-2500 | KSh 20 | KSh 4 | KSh 24 |
| 2501-70000 | KSh 25 | KSh 5 | KSh 30 |
Are There any Penalties for Late Fuliza Loan Repayment?
Late repayment of the FULIZA overdraft facility can result in certain penalties or consequences. Specifically, if you fail to repay the outstanding FULIZA balance within 30 days from the date of utilizing the overdraft, the following will occur:
- Access Restriction: After the 30-day grace period, you will lose access to your FULIZA overdraft limit on your M-PESA account.
- Limit Restoration: However, this access restriction is not permanent. Once you have fully repaid the entire FULIZA balance, including any applicable fees or charges, your overdraft limit will be restored, and you can regain access to the FULIZA service.
Withdrawing Your Fuliza Balance from an M-Pesa Agent
You can withdraw the outstanding Fuliza balance from an M-Pesa agent. Here are two ways to do it:
Using the M-Pesa SIM Toolkit (STK) Menu:
- Access the M-Pesa STK menu on your phone
- Select the “Withdraw Cash” option
- Choose “From Agent” when prompted for withdrawal source
- Enter the M-Pesa agent’s number and store number
- Specify the amount you wish to withdraw (considering your Fuliza limit and applicable withdrawal fees)
- Confirm using your M-Pesa PIN
- Accept the prompt to utilize your Fuliza balance for the withdrawal
Using the USSD M-Pesa Menu:
- Dial *334# on your phone to access the USSD M-Pesa menu
- Select option 2 to “Withdraw Cash”
- Choose option 1 to withdraw “From Agent”
- Enter the agent’s number and store number
- Input the desired withdrawal amount (based on your Fuliza limit)
- Confirm utilizing your Fuliza balance by responding with 1
- The transaction will be processed
Quick Stats About Fuliza Loan
According to Safaricom’s financial data, a staggering Sh2.3 billion was borrowed daily through the company’s mobile money overdraft service, Fuliza, during the fiscal year ending March 31, 2024.
The total value of Fuliza disbursements witnessed an 18.9% year-on-year increase, reaching Sh834 billion, which Safaricom attributes to the product’s affordability.
As Dilip Pal, the company’s chief finance officer, stated,
“We reduced Fuliza rates by nearly 50 per cent in the second half of the last fiscal year. The value of disbursements went up by 18.9 per cent per cent year on year from Sh701 billion to Sh834 billion attesting to the affordability nature of Fuliza as a fit-for-purpose solution to the market.”
Good Luck
Are you treating Fuliza like your rich uncle, constantly hitting them up for cash without ever paying back? At the end of the day, the size of your Fuliza loan is like a trust fall – the more responsible you are, the more M-Pesa will come to your aid when you need that extra financial cushion.
If your Fuliza limit is not growing and it feels stuck in the kiddie pool while others are swimming in the deep end, it might be time for some self-reflection. Don’t get too down if your Fuliza loan isn’t growing as fast as you’d like. Keep up the good financial habits, and before you know it, you’ll be diving into the deep end with confidence.
