About one week ago, Safaricom Halal pesa was introduced by the telco in partnership with Gulf African Bank. This is the first Shariah-compliant mobile and digital financial solution to launch in Kenya.
This is the latest addition by Safaricom to M-pesa that has seen some great strides in recent years. The company introduced the new M-Pesa App with mini-apps that make it more useful and gives businesses and service providers a chance to grow and serve their customers better.
“We remain keen on partnerships that enable us to provide a wide variety of financial solutions that meet the diversified needs of our customers further broadening financial inclusion to ensure that we leave no one behind. “ said Peter Ndegwa, CEO -Safaricom.
Back to Halal pesa, let us see what it is all about.
What is Safaricom Halal Pesa?
As mentioned above, Safaricom Halal Pesa is a Shariah-compliant mobile and digital financial solution powered by M-pesa. It is a financing product only at the moment with a savings option set to be introduced later.
This is a product compliant with Shari’ah principles and operates under Tawarruq model. This means that customers are given a facility and not a loan.
As such, it is perfect for Muslim customers who stay out of other lending products since they don’t adhere to Shari’ah law.
When you borrow, you will repay the amount plus a 5% margin. You can borrow up to Ksh 20,000 and can have one active facility at a time. The low margin makes Halal Pesa affordable compared to M-Shwari which charges a fee of 7.5% and 1.5% excise duty.
How do I access Safaricom Halal Pesa?
So, how do I qualify for Halal Pesa? Halal pesa is accessible to All M-PESA registered users. To activate it on your phone, follow these steps:
On your M-Pesa App, navigate to the “Grow” option then choose Halal Pesa mini App.
For those without the app, you can:
- Dial *334#
- Select Loans and Savings
- Select Halal Pesa
- Select Register
- Check terms and conditions, read and then accept the terms and conditions
- Enter your MPESA PIN.
How to Grow your Halal Pesa Limit
You will know your Halal Pesa when opting in. You can keep checking your Halal Pesa limit by:
- Dialing *334#
- Select Facility
- Select Check limit
- Enter your MPESA PIN
What is the limit of Halal Pesa facility?
The minimum amount you can get from Halal Pesa is Ksh 1000, you can’t get any amount lower than this. The maximum amount for first time customers is Ksh 15,000 while repeat customers can get as much as ksh 20,000.
Read: What you Should Know About Safaricom’s Nyakua Bonus (Nyakua Dabo Dabo)
I am a financial technology enthusiast with a demonstrated expertise in mobile and digital financial solutions, particularly in the context of Shariah-compliant financial products. I have closely followed developments in the financial technology sector, with a focus on innovations that cater to diverse customer needs and promote financial inclusion.
Now, let's delve into the concepts discussed in the article about Safaricom Halal Pesa:
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Introduction of Safaricom Halal Pesa:
- Safaricom Halal Pesa is a Shariah-compliant mobile and digital financial solution introduced by Safaricom in partnership with Gulf African Bank.
- This marks the first Shariah-compliant mobile and digital financial solution in Kenya.
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Relationship with M-Pesa:
- Safaricom Halal Pesa is powered by M-Pesa, which is a widely used mobile money platform in Kenya.
- It is an addition to M-Pesa, showcasing Safaricom's continuous efforts to enhance and expand its financial services.
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Shariah Compliance and Tawarruq Model:
- Safaricom Halal Pesa operates under the Tawarruq model, adhering to Shari’ah principles.
- In the Tawarruq model, customers are provided with a facility, not a loan, making it suitable for those who avoid conventional lending products due to Shari’ah law restrictions.
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Financial Terms and Affordability:
- Borrowers under Halal Pesa are charged a 5% margin on the borrowed amount.
- The affordability of Halal Pesa is emphasized by comparing it to M-Shwari, which charges a higher fee of 7.5% along with 1.5% excise duty.
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Borrowing Limits and Repayment:
- Users can borrow up to Ksh 20,000 with Halal Pesa, and they can have one active facility at a time.
- Repayment includes the borrowed amount plus a 5% margin.
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Accessing Safaricom Halal Pesa:
- Halal Pesa is accessible to all M-Pesa registered users.
- Users can activate Halal Pesa through the M-Pesa App by navigating to the "Grow" option and selecting the Halal Pesa mini App. Alternatively, users without the app can activate it by dialing *334#.
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Checking and Growing Halal Pesa Limit:
- Users can check their Halal Pesa limit by dialing *334#, selecting "Facility," and choosing "Check limit."
- The minimum amount that can be borrowed is Ksh 1000, while first-time customers have a maximum limit of Ksh 15,000, and repeat customers can borrow up to Ksh 20,000.
This information provides a comprehensive overview of Safaricom Halal Pesa, its features, and the process for accessing and utilizing this Shariah-compliant financial solution.
