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Meet M-Shwari from Safaricom!!!!
Rank: Member Joined: 4/15/2009 Posts: 371
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Rank: Member Joined: 3/20/2009 Posts: 348
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[quote=Caveman]I bet this will be the next big thing after Mpesa. http://www.businessdaily.../-/kkxxo2z/-/index.html[/quote] can someone please confirm if the 7.5% is per month or per annum.if it is the latter then it would translate to 0.61% monthly compound rate.However if it is 7.5% per month then it translates to 138% pa compounded which is worse than getting a loan from a shylock
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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i am very happy for this thing. At work, most of colleagues have 500 to 5,000 bobs tu-loan that they always promise to pay end month. FINALY, when they come with their stories, i will always answer, 'have you tried M-Shwari?'. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Veteran Joined: 11/15/2012 Posts: 1,110
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This is it!
Any serious banker would tell you that this is the deal. Airtel-Faulu partnership may not have penetrated the "unbanked" segment, but going by the number of Safaricom subscribers, this is going to have massive realignments.
Short term: Micro-financial institutions could be in trouble because they target the same client base. And for those small loaning corporations charging exorbitant interest rates of up to 20 %, the time to close shop is here. Banks, will also feel the pinch.
Long term: Safaricom profits will be up in the coming years.
My query:
Is there any "hidden" charges for operating the M-Shwari account?
How do you accurately determine the credit worthiness of an individual using phone transactions? Remember Lehman Brothers? The bank collapsed coz of loaning individuals who could not pay their mortgages.
Live Full Die Empty - Les Brown.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Interest rate on loans; 90% p.a.!!! (7.5% flat p.m.)
Interest rate on deposits; 5% p.a. (Maximum!!!)
Sucker!!!!!
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Rank: Veteran Joined: 11/20/2009 Posts: 1,402
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mwekez@ji wrote:Interest rate on loans; 90% p.a.!!! (7.5% flat p.m.)
Interest rate on deposits; 5% p.a. (Maximum!!!)
Sucker!!!!! The interest rate is 7.5% The loan is payable within 30 days. However, you can repay the loan before the due date and borrow again. If you pay the loan in less than 30 days your loan limit qualification will increase.
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Rank: Member Joined: 7/17/2006 Posts: 133
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[quote=Caveman]I bet this will be the next big thing after Mpesa. http://www.businessdaily.../-/kkxxo2z/-/index.html[/quote] That's alright, it'll be a ready access to fast funds-subject to saving with them. From another point of view, isn't it identical to what shylocks do only at lower interest? i.e repay in 1 month at one off interest rate(7.5%)
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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InnovateGuy wrote:This is it!
Any serious banker would tell you that this is the deal. Airtel-Faulu partnership may not have penetrated the "unbanked" segment, but going by the number of Safaricom subscribers, this is going to have massive realignments.
Short term: Micro-financial institutions could be in trouble because they target the same client base. And for those small loaning corporations charging exorbitant interest rates of up to 20 %, the time to close shop is here. Banks, will also feel the pinch.
Long term: Safaricom profits will be up in the coming years.
My query:
Is there any "hidden" charges for operating the M-Shwari account?
How do you accurately determine the credit worthiness of an individual using phone transactions? Remember Lehman Brothers? The bank collapsed coz of loaning individuals who could not pay their mortgages.
I expect some noise from bankers...I also wonder how they will determine ones credit worthy-ness Was thinking of offloading this bank but am seeing the future is exciting. "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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mwekez@ji wrote:Interest rate on loans; 90% p.a.!!! (7.5% flat p.m.)
Interest rate on deposits; 5% p.a. (Maximum!!!)
Sucker!!!!! I thought the article states this is a micro-lending product for micro-savers thus the repayment period of a month only.
Those small loans of say 2000/- across say 5 million savers on mpesa equals 10B advanced. Workout the interest & the mpesa withdrawal fees. CBA & Mpesa bank are in the monies. Now add the frequency of re-lending in those 30 days... That's a big candy stick. Microfinancers are up against a huge fight! $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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only ua mother can lend u at 7.5% p.a.. dont mislead us
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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some change this thread to ' meet safaricom's Shylock business' But seriously, who will borrow 100,000/- at 7p.c per month. Afadhali uchukue salary advance at equity to repay after 3 month at 25p.c p.a. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Veteran Joined: 11/20/2009 Posts: 1,402
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Loan Features
How do I qualify for a loan?
• In order to qualify for a loan one has to be an active user of M-PESA for at least 6 months, save regularly on M-Shwari account and continuously use other Safaricom services such as voice, DATA and M-PESA.
How do I check how much I can borrow?
• Please dial *234*6# you will get a notification asking you if you have read and accepted the terms and conditions.
• This will also give you information on whether you are eligible for a loan and the loan amount limit that will be awarded to you.
What is the minimum amount you can borrow?
• The minimum amount you can borrow is ksh100
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Someni pole pole Quote:The service, which mainly targets micro-savers and borrowers, requires users to open a mobile bank account, M-Shwari , into which they can deposit as low as Sh1 in savings and borrow up to Sh100,000 payable with a one-off interest rate of 7.5 per cent.
All loans are payable within a month Amount is subject to how much u save "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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Muheani wrote:mwekez@ji wrote:Interest rate on loans; 90% p.a.!!! (7.5% flat p.m.)
Interest rate on deposits; 5% p.a. (Maximum!!!)
Sucker!!!!! WRONG The interest rate is 7.5% pa The loan is payable within 30 days. However, you can repay the loan before the due date and borrow again. If you pay the loan in less than 30 days your loan limit qualification will increase. @Muheani WRONG. It is very clear - "payable with a one-off interest rate of 7.5 per cent. All loans are payable within a month of disbursement". one-off does not mean p.a. and payable within a month means just that.
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Rank: Veteran Joined: 11/20/2009 Posts: 1,402
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@ GG
I take back my comment.
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Rank: Elder Joined: 1/27/2011 Posts: 1,777
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Is this the MPESA BANK people were talking about?
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Rank: Member Joined: 4/24/2009 Posts: 72
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hisah wrote:mwekez@ji wrote:Interest rate on loans; 90% p.a.!!! (7.5% flat p.m.)
Interest rate on deposits; 5% p.a. (Maximum!!!)
Sucker!!!!! I thought the article states this is a micro-lending product for micro-savers thus the repayment period of a month only.
Those small loans of say 2000/- across say 5 million savers on mpesa equals 10B advanced. Workout the interest & the mpesa withdrawal fees. CBA & Mpesa bank are in the monies. Now add the frequency of re-lending in those 30 days... That's a big candy stick. Microfinancers are up against a huge fight! Meet Chege..Chege buys fresh produce at Marikiti market. Chege needs to buy goods to take to his small shop in Buruburu. Chege sees some more prduce he can buy in addition to his planned expenditure and can make more after re sell. Chege needs only 1000 bob. Chege now has an option of getting the money "pap" from mshwari and repay in the evening at the rate of 7.5% meaning he will pay 1075 back to mshwari, having made 2000 from selling his produce. Take home = 925/=. This is the target market. the small scale people
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Rank: Elder Joined: 10/23/2009 Posts: 2,375
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Shylocks are going to be hit hard especially as this product as I see will probably mostly be lending amounts of 10,000 and below. Borrowing 100,000 at such rates may be suicidial. Shylocks remain with your ID ATM and may come and take away your property to enforce repayment. How will Safaricom enforce repayment? By reporting to the CRB? It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt...
-Mark Twain
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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but just as @deal has stated, safcom should have made data cheap first and go slow on this shylock bizna. I NEED AFFORDABLE BROADBAND INTERNET. If unlimited plans are not viable, then provide 10GB for 1k. Receive with simplicity everything that happens to you.” ― Rashi
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Meet M-Shwari from Safaricom!!!!
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