Kenya’s largest telecommunications company, Safaricom, recently launched three new loan products, Taasi Pochi, Fuliza Biashara, and Taasi Till Loan, offering up to KSh 400,000. Safaricom CEO Peter Ndegwa. The company introduced Taasi Till, Taasi Pochi and Fuliza Biashara. Photo: Peter Ndegwa. Source: Twitter In a statement, the company explained that the M-Pesa team has tailored business credit solutions for small and medium enterprises (SMEs). What are Taasi Pochi, Taasi Till and Fuliza Biashara? Businesses will have access to credit through the Fuliza Biashara overdraft facility and the Taasi Till. READ ALSO Safaricom clarifies it doesn’t review M-Shwari loan limit after customers complained
. Taasi Till, a business credit, provides short-term financing with a range of KSh 1,500 to KSh 250,000. Depending on their designated limit, Lipa na M-Pesa merchants can take out multiple overdrafts through Fuliza Biashara, with a minimum of KSh 1,000 and a maximum of KSh 400,000. As part of the redesign, merchants will now have the flexibility to pay back their overdrafts whenever cash flows through the till, ensuring business continuity. To access the credit solutions, customers can use the USSD code *234# or the M-Pesa business app. Taasi Pochi provides credit ranging from KSh 1,000 to KSh 250,000 for businesses using Pochi la Biashara. Credit is instantly available on the Pochi wallet through the M-Pesa app or USSD *334*8#. Kenyans at an M-Pesa shop. Photo: Bloomberg. Source: Getty Images What are criteria for Taasi and Fuliza Biashara? KCB, Diamond Trust Bank, Sidian Bank, and Absa Wezesha stock loan were among the financial institutions with which M-Pesa collaborated to make the products a reality.
Safaricom and its partners hope to promote financial inclusion and open doors by expanding access to reasonably priced credit for Kenyan business owners, particularly those operating in the informal sector. To qualify for the loans, the merchants’ Pochi wallets or tills must have been operational for longer than six months. “To be eligible for credit for ‘Taasi’ and Fuliza Biashara, merchants must have had active tills or Pochi wallets for more than six months. Upon approval, funds are deposited directly into the user’s M-Pesa wallet with flexible repayment periods of between 14 and 30 days,” Safaricom explained in a statement sent to TUKO.co.ke. What is the interest rate for Taasi Pochi?
Earlier, TUKO.co.ke reported that the interest rate for Taasi Pochi is 3.85% for a seven-day loan, 4.71% for a fourteen-day loan, and 6.41% for a thirty-day loan, according to Safaricom. Whether the loan is returned on the first or last day of the repayment period, the total amount owed, principal plus interest, remains constant because the loan will have a one-time interest charge levied at the time of issue. The final decisions about the credit limit and the relevant interest rate will be made by the banks.
By Japhet Ruto
