By CET | News

Kenyan operator Safaricom’s M-Shwari service is offering six-month loans to customers buying smartphones.

Safaricom has partnered with manufacturers such as Huawei, Tecno, LG and.Samsung to offer mobile phones on credit at its outlets, Business Daily reported.

To be eligible, one must be a Safaricom and M-Shwari customer and will be required to deposit 30 percent of the device purchase price to one’s M-Shwari savings account prior to being advanced the loan, and pay the balance within six months.

The minimum loan amount is KES 1,000 while the maximum is KES50,000. There is a facility fee of 15.6 percent but no loan-processing fees or interest charges during the term of the loan.

Defaulters are charged KES 200 for every overdue loan instalment.