Increasing your loan limit ensures you secure a higher amount upon a loan request. To achieve this there are several things you need to enjoy a higher limit here are some of the hacks.
1. Transact frequently
M-Shwari is reputed to award higher loan limits to subscribers who frequently transact in M-Pesa. Constantly sending and receiving money creates a digital footprint that the loaning algorithm favors, unlike a dormant M-Pesa account.
It doesn’t necessarily mean you need to move loads of money from your account to another. A smaller transaction like using Lipan na M-Pesa, purchase of airtime, sending money to improve your chances.
2. Repay in time
It is a no brainer that prompt payment of loans improves your credit rating. The confidence this inspires in your lender translates to a higher limit. For instance, you can apply for a Ksh 1000 loan and repay it in a record one day. This information is captured by your lender. Chances that next time you qualify for 1500 or more is high granted you are more likely to repay the M-Shwari amount within the required time.
3. Ensure you have a positive listing
Negative listing can hinder your chances of getting a higher loan. Especially if you have an existing loan with other mobile app lenders like Branch and tale ensure you repay them in time. Most of these apps often forward the names of the defaulters to CRB. You can check if you are listed in case you are not sure of your credit history. If you are negatively listed chances are you won’t even qualify for a loan.
Check this too: How to apply for Okolea loan
4. Save
When you save with M-Shwari you increase your chances of getting a loan. Given M-Shwari is a collaboration between Safaricom and CBA the banking aspect plays a role in loan limits. Your savings obviously give you a higher loan limit granted you can only receive an amount higher than it.
5. Use other Safaricom products consistently
There is a nexus between the usage of Safaricom products and your loan limit. Airtime purchase, data usage, and Bonga Points balance paint a picture of your financial position. To get a higher loan limit you would need to purchase airtime, data bundles and accumulate a lot of Bonga points.
6. Take loans frequently and repay them on time
Taking loans consistently ensures your loan amount goes up. It is difficult to secure a higher loan limit when in a year you take a single loan. The lender definitely will be at pains to understand your repayment pattern in return being conservative in lending you a higher amount.
M-Shwari has transformed mobile banking by giving Safaricom subscribers fast loans. Compared to conventional banks, the service comes in handy. It is therefore prudent to ensure your limit goes up by employing the tactics mentioned herein. Also, make a point of paying your other existing loans.
