Mshwari loans are low interest mobile loans offered by Safaricom in partnership with NCBA bank. All you need to start getting your Mshwari loan. Mshwari enables you to Enable you to access micro credit product (loan) of a minimum of Ksh.100 anytime and receive your loan instantly on your M-PESA account.
But I used to receive Mshwari loans but I no longer qualify after defaulting!!?
Do you know why Mshwari is no longer qualify for Mshwari loans?. There are two possibilities why you Mshwari loan limit is stuck at zero. One, you defaulted on your previous loan and took long to repay it. You were then listed on CRB and you are marked as a defaulter. To solve this you will need to get CRB Clearance services.
The second reason why Mshwari no longer issues mobile loans to you is because of your poor credit score. Ideally, banks seek collateral and guarantors to issue you with a loan. However with mobile banking, no guarantors or collateral is used to issue individual with mobile loans. Mobile loan lenders therefore use your credit score to determine your credit worthiness.
If your credit score is too low, the interpretation is that your ability to repay a loan is in doubt. However, high credit score is a clear indication of your ability to repay a loan. This is also used to determine how much you can be issued.
What affects your score?
Like stated earlier your score is determined by your transaction history. If you have a low mobile money transaction history you will be rated low. As your mobile money transaction increases, you created score increases as well.
Credit score are numerical data allocated to individuals by CRB bodies according to the your transaction history over a certain period of time. Credit scores runs from 1- to 1000 with 1 being too low while 1000 being the highest score. Some of CRB bodies that collects and rates individual according to their financial and transaction history include Metropol and TransUnion.
Your score can also be affected by defaults. If you have a loan in default or you have a default history, this can greatly affect your score thus affecting your credit worthiness as well.
What You need to do in order to start qualifying for Mshwari loans
To be able to start qualifying for Mshwari loans as you used to, you need to work on two things;
First if you defaulted on your previous loan, pay it in full and get CRB clearance. This way you will gain good standing with CRB and your credit score will start to improve.
The second thing you need to do is, work on your mobile money transfer history. By this I mean the more you transact through mobile money the more you will accelerate and improve your credit score. CBR bodies will score you high and you will ear trust from the mobile money lenders.
Sooner or later you will see that Mshwari has restored their confidence in you and eventual you will qualify for their loans.