How to fuliza

What is Fuliza?

Fuliza is an overdraft service offered by Safaricom, Kenya's leading telecommunication provider, in partnership with KCB Bank and NCBA Bank. It is designed to provide M-PESA users with instant credit to complete their mobile money transactions when they have insufficient funds in their M-PESA wallet. The service aims to ensure that users are not inconvenienced by a lack of funds for essential transactions like sending money to family, paying utility bills, or purchasing goods and services.

How Does Fuliza Work?

The process of using Fuliza is straightforward and integrated directly into the M-PESA transaction flow. When you attempt to make an M-PESA transaction (such as sending money, paying a bill, or buying airtime) and find that your M-PESA balance is insufficient, the Fuliza option will typically appear. If you opt to use Fuliza, the service will instantly grant you an overdraft facility to cover the shortfall. The loan amount you can access depends on your transaction history, creditworthiness, and relationship with Safaricom and its partner banks.

Key Features and Benefits

• Instant Access: Fuliza provides immediate access to funds, allowing you to complete transactions without delay. This is particularly useful in emergencies or when unexpected expenses arise.
• Zero Balance Transactions: You can use Fuliza even if your M-PESA wallet has a zero balance, as long as you have a positive credit limit available.
• Versatility: The service can be used for a wide range of M-PESA transactions, including sending money to other M-PESA users, paying bills (like electricity, water, or internet), purchasing airtime for yourself or others, and paying merchants via M-PESA.
• Seamless Integration: Fuliza is deeply integrated into the M-PESA platform, making it easy to use without needing to dial separate USSD codes or download additional apps. The option appears naturally during the transaction process.
• Flexible Repayment: Repayment is automatic and hassle-free. Any funds deposited into your M-PESA wallet are first used to offset any outstanding Fuliza loan balance. You can also choose to repay manually via the M-PESA menu.

How to Access and Use Fuliza

To use Fuliza, you simply need to be an active M-PESA subscriber. The service is automatically available to eligible users. When you initiate an M-PESA transaction:

1. Dial *334# or go to the M-PESA option on your Safaricom SIM Toolkit/MySafaricom App.
2. Select the type of transaction you wish to make (e.g., Send Money, Pay Bill, Buy Airtime).
3. Enter the details of your transaction (recipient number, amount, etc.).
4. If your M-PESA balance is insufficient, you will be prompted with a Fuliza option.
5. Select 'Yes' or 'Fuliza' to accept the loan to complete the transaction.
6. You will receive a confirmation message detailing the loan amount, fees, and the outstanding balance.

You can check your Fuliza limit and balance by dialing *334# and selecting the Fuliza option, then choosing 'My Fuliza Limit' or 'Balance'.

Fuliza Fees and Charges

Fuliza charges are based on the amount of the loan. There is a daily fee that is applied to the outstanding loan amount. For instance, for very small amounts, the fee might be as low as KSh 1. Larger loan amounts incur higher daily fees. Additionally, there might be a one-time fee or excise duty applied depending on the transaction and loan amount. It is crucial to check the specific fee structure provided by Safaricom for the most up-to-date information, as these charges can be subject to change. The fees are generally competitive compared to other short-term credit facilities.

Repayment of Fuliza Loans

Repayment of Fuliza loans is automatic. When you receive money into your M-PESA wallet or deposit funds, the system will first deduct any outstanding Fuliza loan amount, including accrued fees, before crediting your M-PESA balance. This ensures that your loan is settled promptly. You can also choose to repay manually by dialing *334#, selecting Fuliza, and then choosing the 'Repay Fuliza' option. It's advisable to repay loans promptly to maintain a good credit standing and avoid potential limits on future Fuliza usage.

Eligibility and Limits

Eligibility for Fuliza is primarily based on your M-PESA usage patterns and your overall relationship with Safaricom. Users with a consistent history of using M-PESA and other Safaricom services are more likely to be granted a Fuliza limit. The loan limit is dynamic and can increase over time as you demonstrate responsible usage and repayment behavior. Safaricom reviews these limits periodically. There is no fixed minimum loan limit; it is determined by an individual's credit profile.

Potential Risks and Considerations

While Fuliza offers convenience, it's important to use it responsibly. Over-reliance on Fuliza can lead to a cycle of debt, especially if users are not diligent with repayment. The daily fees, although seemingly small, can accumulate over time. It is essential to ensure that you have a clear plan for repayment before utilizing the service. Always check your M-PESA balance and outstanding Fuliza amount before making new transactions to avoid unexpected deductions.