Before diving into the application process, let’s clarify what these products are and how they differ. Both Fuliza for Business and Taasi Loans (encompassing Taasi Till and Taasi Pochi) are designed to address the financial needs of micro, small, and medium enterprises (MSMEs) in Kenya. They leverage Safaricom’s M-PESA platform, making them accessible, quick, and paperwork-free. However, their structure and use cases vary.
Fuliza for Business: The Overdraft Lifeline
Fuliza for Business (also called Fuliza ya Biashara) is an overdraft facility that allows merchants to complete transactions even when their M-PESA business till lacks sufficient funds. Think of it as a financial safety net for urgent payments—whether it’s paying suppliers, restocking inventory, or covering utilities. Offered in partnership with KCB Bank Kenya, it provides unsecured credit of up to KSh 400,000, with automatic repayments deducted from till collections every 30 minutes.
- Loan Range: KSh 1,000 to KSh 400,000.
- Interest-Free Period: 48 hours, followed by a 2% daily access fee and a tiered maintenance fee (KSh 12–250 daily).
- Eligibility: Active Lipa Na M-PESA till for at least 6 months.
- Use Case: Ideal for short-term cash flow gaps, like completing a transaction when funds are low.
Taasi Loans: Flexible Term Loans for Growth
Taasi Till and Taasi Pochi are term loans tailored for merchants using Lipa Na M-PESA or Pochi la Biashara accounts. Unlike the overdraft model, these loans provide a fixed amount disbursed to your M-PESA wallet, with repayment periods ranging from 7 to 30 days. They’re perfect for planned expenses like purchasing stock, paying staff, or covering rent.
- Loan Range: KSh 1,500 to KSh 250,000 (Taasi Till); KSh 1,000 to KSh 250,000 (Taasi Pochi).
- Repayment Terms: 14, 21, or 30 days, with interest rates (e.g., 6% for a 14-day loan).
- Eligibility: Active Lipa Na M-PESA or Pochi la Biashara for at least 6 months.
- Use Case: Best for planned business expenses requiring a lump sum.
Why These Loans Matter
In Kenya, MSMEs account for over 30% of GDP and employ millions, yet many struggle to access traditional bank loans due to stringent requirements like collateral or extensive paperwork. Safaricom’s credit products use transaction data to assess creditworthiness, making them accessible to informal traders and small enterprises. The automation of repayments—deducted directly from your till or wallet—reduces the stress of fixed schedules, aligning with the unpredictable cash flows of small businesses.
How to Apply for Fuliza for Business
Applying for Fuliza for Business is straightforward, designed to fit the fast-paced life of a Kenyan entrepreneur. Here’s a step-by-step guide to get started:
Step 1: Ensure Eligibility
To qualify, you must:
- Have an active M-PESA business till registered with a Kenyan national ID, passport, or military ID.
- Have used the till for at least 6 months with consistent transactions.
- Maintain a positive Credit Reference Bureau (CRB) status and comply with Safaricom’s KYC requirements.
Step 2: Opt-In to Fuliza for Business
You can activate the service via two methods:
- Using USSD:
- Dial *234# from your registered Safaricom M-PESA till number.
- Select “M-PESA Business Till.”
- Log in with your store number.
- Choose “Business Loans” and select “Fuliza ya Biashara.”
- Follow the prompts to opt-in.
- Using the M-PESA Business App:
- Download the M-PESA Business App from Google Play or the App Store.
- Log in with your till credentials.
- Navigate to the “Loans” section and select “Fuliza ya Biashara.”
- Accept the terms and conditions to activate.
Upon successful registration, you’ll receive a text message with your assigned overdraft limit, which determines the maximum you can borrow.
Step 3: Use Your Overdraft
Once activated, Fuliza for Business kicks in automatically when your till balance is insufficient for a transaction (e.g., Paybill, Buy Goods, or withdrawals to a nominated number). You’ll receive a pop-up message to confirm the overdraft. The service is seamless, ensuring your business operations don’t stall.
Step 4: Repay and Grow Your Limit
Repayments are deducted automatically from till collections every 30 minutes, prioritizing the outstanding balance plus a 2% access fee and daily maintenance fees (after the 48-hour interest-free period). To increase your limit:
- Use M-PESA services frequently.
- Repay overdrafts promptly to avoid penalties.
- Avoid defaulting, as this risks CRB listing after 91 days.
How to Apply for Taasi Till and Taasi Pochi Loans
Unlike the overdraft model, Taasi Till and Taasi Pochi provide fixed-term loans for specific business needs. Here’s how to apply:
Step 1: Confirm Eligibility
Eligibility mirrors Fuliza for Business:
- Active Lipa Na M-PESA till (for Taasi Till) or Pochi la Biashara account (for Taasi Pochi) for at least 6 months.
- Registered with a valid Kenyan ID and compliant with KYC requirements.
- A strong transaction history to demonstrate creditworthiness..
Step 2: Apply for the Loan
You can apply through:
- USSD for Taasi Till:
- Dial *234# from your registered till number.
- Select “M-PESA Business Till” and log in.
- Choose “Business Loans” and select “Taasi Till.”
- Follow prompts to check eligibility, select loan amount, and choose repayment terms (14, 21, or 30 days).
- USSD for Taasi Pochi:
- Dial *334# from your Pochi la Biashara registered line.
- Select “Pochi la Biashara” and then “Loans.”
- Choose “Taasi Pochi” and follow prompts to apply.
- M-PESA App:
- Open the M-PESA App or M-PESA Business App.
- Navigate to the “Loans” section.
- Select “Taasi Till” or “Taasi Pochi” and follow the application steps.
Funds are disbursed instantly to your M-PESA wallet upon approval.
Step 3: Manage Repayments
Repayments are flexible, with terms of 14, 21, or 30 days. A 14-day Taasi Till loan, for example, incurs a 6% fee, with a 3% rollover fee if unpaid by day 15 and a 1% daily penalty from day 28. Repay via:
- Automatic deductions from till or wallet collections.
- Manual payments through the M-PESA App or USSD (*234# or *334#) under the “Pay Balance” option.
Comparing Fuliza for Business and Taasi Loans
To help you choose the right product, here’s a comparison table:
| Feature | Fuliza for Business | Taasi Till/Taasi Pochi |
|---|---|---|
| Type | Overdraft facility | Term loan |
| Loan Range | KSh 1,000–400,000 | KSh 1,500–250,000 (Till); KSh 1,000–250,000 (Pochi) |
| Repayment Period | Continuous, auto-deducted every 30 mins | 14, 21, or 30 days |
| Interest/Fees | 2% daily access fee + maintenance fee | 6% for 14 days, tiered fees for longer terms |
| Eligibility | Active Lipa Na M-PESA till (6+ months) | Active till or Pochi (6+ months) |
| Best For | Short-term cash flow gaps | Planned expenses (stock, payroll, rent) |
Key Tips for Success
- Build a Strong Transaction History: Frequent M-PESA transactions (e.g., customer payments, airtime purchases) signal creditworthiness, increasing your loan limit.
- Use Bonga Points: Safaricom’s loyalty program lets you earn points (1 point per KSh 10 spent) that can offset Fuliza balances, boosting your credit score.
- Avoid Defaulting: Late repayments incur penalties and risk CRB listing, which can lock you out of future credit. Always prioritize timely repayments.
- Monitor Your Limit: Check your Fuliza or Taasi limit regularly via *234# or *334# to plan borrowing effectively.
- Leverage Customer Support: For issues, contact Safaricom at 100, 200, or 2222, or visit their support page.
Challenges and Considerations
While these loans are game-changers, they’re not without challenges:
- High Fees: The 2% daily access fee for Fuliza and 6%+ fees for Taasi can add up if not repaid quickly.
- CRB Risks: Defaulting beyond 91 days leads to CRB listing, impacting future borrowing.
- Limit Variability: Your loan limit may decrease if transaction activity drops or repayments are late.
Conclusion: Empower Your Business with Smart Credit
For Kenyan entrepreneurs like Jane and Peter, Fuliza for Business and Taasi Loans are more than just financial tools—they’re enablers of growth, flexibility, and resilience. By following the steps outlined—ensuring eligibility, applying via USSD or the M-PESA App, and managing repayments—you can tap into these solutions to keep your business thriving. The key is to use them strategically: leverage Fuliza for immediate cash flow needs and Taasi for planned expenses, all while maintaining a strong transaction history and timely repayments.