📱 M-Pesa vs Bank Loan Calculator Kenya
Compare the true cost of mobile money loans (Fuliza, M-Shwari, Tala) vs traditional bank loans. See how "small" daily fees add up to massive interest rates.
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Did You Know?
Fuliza's 0.5% daily rate = 182.5% per year. That's 10x more expensive than most bank loans!
Calculate Your Loan Cost
Mobile Loans
Bank/SACCO Loans
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You could save
Ksh 1,352
by choosing Bank Personal Loan over Fuliza
Cost Comparison for Ksh 10,000 over 1 Month
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Bank Personal Loan
CHEAPEST~18% p.a. (avg Kenya)
Interest
Ksh 148
Total to Repay
Ksh 10,148
Effective APR
18%
Interest = 1% of loan amount
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M-Shwari
Mobile7.5% facility fee (30 days)
Interest
Ksh 750
Total to Repay
Ksh 10,750
Effective APR
90%
Interest = 8% of loan amount
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Fuliza
Mobile0.5% daily access fee
Interest
Ksh 1,500
Total to Repay
Ksh 11,500
Effective APR
182.5%
Interest = 15% of loan amount
📊 Effective Annual Interest Rates (APR)
This shows the true yearly cost if you kept borrowing at these rates for a full year.
Bank Personal Loan
18% p.a.
M-Shwari
90% p.a.
Fuliza
182.5% p.a.
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Key Insight: Mobile loans often advertise "small" daily or monthly fees, but when converted to annual rates, they can be 5-15x more expensive than bank loans. Use mobile loans only for very short emergencies (under 7 days).
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When Mobile Loans Make Sense
- ✓Very short emergencies (1-7 days)
- ✓Small amounts under KES 5,000
- ✓When you have no bank access
- ✓Instant disbursement is critical
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When Bank Loans Are Better
- ✓Any loan over 30 days
- ✓Amounts over KES 20,000
- ✓Planned expenses (school fees, etc.)
- ✓Building credit history
🎓 Understanding Loan Costs in Kenya
How Mobile Loan Fees Work
Mobile lenders like Fuliza, M-Shwari, and Tala use different fee structures that can be confusing:
- Fuliza: Charges 0.5% per day on the outstanding balance. If you borrow KES 10,000, you pay KES 50/day in fees.
- M-Shwari: Charges a one-time 7.5% facility fee for 30-day loans. This is simple interest, not compounding.
- Tala/Branch: Charge service fees of 11-22% depending on your credit limit and loan term.
The Real Cost Example
Borrowing KES 10,000 for 30 days:
- Fuliza: KES 1,500 interest (0.5% × 30 days = 15%)
- M-Shwari: KES 750 interest (7.5% facility fee)
- Bank at 18% p.a.: KES 148 interest (18% ÷ 12 months)
Fuliza costs 10x more than a bank loan for the same amount and period!
Tips to Save Money
- Repay mobile loans within 7 days to minimize fees
- Use bank check-off loans for any planned expense
- Join a SACCO for the lowest interest rates (12% p.a.)
- Never roll over mobile loans - the fees compound quickly
- Build an emergency fund to avoid expensive emergency borrowing