Understanding How the Safaricom Boost ya Biashara Interest Rate
Safaricom's Boost ya Biashara is a credit facility that allows business owners to complete transactions even when they have insufficient funds in their M-PESA Business tills.
This service is designed to help small and medium-sized businesses manage their cash flow more effectively.
One of the key questions business owners have about Boost ya Biashara is the interest rate. Let's take a closer look at how the interest rate works:
What is the Boost ya Biashara Interest Rate?
The Boost ya Biashara facility does not charge any interest. Instead, it has two types of fees:
1. Access Fee: This is a one-time fee of 2% that is charged whenever you use the Boost ya Biashara facility to complete a transaction. This means if you borrow Ksh 1000, you will receive the Ksh 1000 less the 2% fee.
2. Daily Maintenance Fee: This is a daily fee that is charged based on the amount you have borrowed. The fee ranges from KSh 0 to KSh 250 per day, depending on the amount you have borrowed. The table below shows the daily maintenance fee structure:
So, in summary, the Boost ya Biashara facility does not charge any interest. Instead, it has a one-time access fee of 2% and a daily maintenance fee that varies based on the amount borrowed.
How to Repay the Boost ya Biashara Loan
The Boost ya Biashara loan is designed to be repaid within 30 days. However, business owners are encouraged to repay the loan as soon as possible to avoid the daily maintenance fees.
The repayment is automatically deducted from the business owner's M-PESA Business Till every 30 minutes until the loan is fully repaid. If there are insufficient funds in the Till, the system will keep retrying to recover the payment until the funds are available.
Business owners can also check their outstanding balance, mini-statement, and due date for the Boost ya Biashara loan by dialing *234# and selecting the "M-PESA Business Till" option.
Conclusion:
In conclusion, the Boost ya Biashara facility from Safaricom is a useful tool for small and medium-sized businesses to manage their cash flow. While it doesn't charge any interest, it does have a one-time access fee and a daily maintenance fee that varies based on the amount borrowed. By understanding these fees, business owners can make informed decisions about using the Boost ya Biashara facility to support their business growth.
Disclaimer: We are not sponsored or affiliated with Boost ya Biashara. Consider visiting their website to learn more about how they operate.
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