Safaricom has partnered with Gulf African Bank to introduce a Shariah-compliant mobile finance service that will see the bank earn a five percent profit.
The bank will disburse the cash –up to a maximum of Sh20,000— and will recover the amount plus the five percent margin.
The repayment period is 30 days on the platform dubbed Halal Pesa and which is built out of the telco’s mobile money platform M-Pesa.
Islamic banks do not charge interest and instead levy a margin or profit.
Halal Pesa is cheaper than the cost of taking loans on M-Shwari which is a partnership between NCBA Bank and Safaricom.
M-Shwari customers pay a fee of 7.5 percent and 1.5 percent excise duty. M-Shwari also allows clients to save money while Halal Pesa specialises on financing.
All M-Pesa customers can access Halal Pesa as a mini App. Customers will initially be provided with a personalised facility limit based on their M-Pesa usage. The limit can be increased based on a customer’s usage of Halal Pesa.
The bank will disburse the cash –up to a maximum of Sh20,000— and will recover the amount plus the five percent margin.
The repayment period is 30 days on the platform dubbed Halal Pesa and which is built out of the telco’s mobile money platform M-Pesa.
Islamic banks do not charge interest and instead levy a margin or profit.
Halal Pesa is cheaper than the cost of taking loans on M-Shwari which is a partnership between NCBA Bank and Safaricom.
M-Shwari customers pay a fee of 7.5 percent and 1.5 percent excise duty. M-Shwari also allows clients to save money while Halal Pesa specialises on financing.
All M-Pesa customers can access Halal Pesa as a mini App. Customers will initially be provided with a personalised facility limit based on their M-Pesa usage. The limit can be increased based on a customer’s usage of Halal Pesa.