As a mobile money borrower, you must have been wondering what will become of your short term loan when the repayment period falls due and your pocket is empty amid this COVID-19 pandemic. Telco giant Safaricom has stepped in to save the day by cushioning its borrowers during this time of crisis, just to give them relief.
Safaricom has announced major changes in its Mshwari services that will put a smile on its borrowers’ faces effective up until June 26, 2020, when Mshwari will announce other new changes. In a detailed statement, the telco has addressed the most frequently asked questions regarding Mshwari loans ranging from repayment dates and additional fees for delayed payments during this COVID-19 outbreak.
Henceforth, customers with a penalty which is incurred after 30 days of borrowing are over, have now been given a two months extension to clear their balances. This implies that if a customer borrows a loan which falls due in thirty days, they will be allowed to repay it in 60 days. However, the loan due date shall remain as always communicated, 30 days from the time a loan request is approved.
Additionally, those who failed to repay the Mshwari loans after 60 days from accessing credit for a month will be granted a grace period. If they pay after the 60d days, the will be allowed to borrow again immediately.
Safaricom has also made drastic changes to the timelines for lowering a borrower’s limit. During this COVID-19 pandemic, timelines for lowering loan limits have been extended to 90 days of non-repayment from the previous 60 days. If a loan is outstanding for over four months, a borrower’s limit will be reduced to Ksh 0.