Equity Launches its Version of Fuliza
Equity Bank Kenya Limited has introduced a new feature called Boostika Which allows customers to exceed their account balance by up to Sh100,000 in order to carry out transactions like shopping and purchasing airtime.
The introduction of Boostika by the bank means that it will now directly compete with Safaricom's Fuliza service. Boostika allows customers to complete transactions and payments even if they don't have sufficient funds, with the option to repay the amount within a month. The interest rate for this credit facility is 8.5%. In order to qualify for Boostika, customers need to have maintained an active account for a minimum of six months.
Customers have the choice to borrow anywhere between Sh100 and Sh100,000, depending on their approved loan amount. They are able to obtain multiple overdrafts as long as the amount owed does not exceed their limit. Equity has integrated Boostika into the payment system, allowing customers to smoothly complete transactions without having to leave the payment process.
“The Boostika option is embedded on the transaction journey when one runs low on funds when making a payment, sending money or buying airtime, therefore offering one the convenience of completing a transaction seamlessly without exiting the payment journey,” says Equity.
At a monthly rate of 1.5 percent, along with a one percent loan insurance fee and a 20 percent excise duty based on the processing fee, a customer who borrows the maximum amount of Sh100,000 will end up paying a total of Sh8,500. This includes Sh5,000 for processing fees, Sh1,500 for interest, Sh1,000 for the loan insurance charge, and an additional Sh1,000 for the excise duty. For an Equity customer with a Sh70,000 Boostika overdraft, the cost will be Sh5,950 if it is repaid after 30 days.
Comments (7)
Who’s he fooling? Fuliza
Fools, Juju. I once applied 60k. They took away 12k as processing fee, and a series of other hidden and weird fees. With no disclosure. In the end I got 35k. Then was to pay 6k every month at an interest rate 23%. Aha! Then I remembered nina ujuaji mingi. Figured out, what kind of a fool could I be? Get ripped off in broad daylight? Hell no!!!! Took my American Express, Citi Master Card and BoA card. Went to operation manager. Without twitching my eyelids, paid it off, closed my diaspora account and Equitel mafi ya kuku, and left her with her mouth open after I think she realized I was from yues. Asked my friends to do the same. Got an email for a refund of 15k on my mpesa. Never went there again.
My predictions is that Equity bank will go the Barclays and Standard route very soon. Watch this page.
To me it looks like almost everyone in the shìthole is a criminal thief conman/woman one way or another!
What you described above is absolutely criminal were it not in a third world country shìthole!
And the worst thing, they have NO DAMN SHAME!!!
The 8.5% and the monthly rate of 1.5% do not add up. When one add the costs to get the loan, the real cost might be above 50% pa, which is a rip-off.
That’s definitely usury loan sharking, by criminal greedy thieves!!!!
It beats logic, why should one pay exercise duty for obtaining a loan, which is a debt and not INCOME??? Preposterous!!!
Banks are legal gangsters and scammers. They just put fees as much as they want. Sacco is way to go for they are non profit. Barter trade is the only Godly trade. Middle man, the devil was the first one. He got filled with pride after multitudes of merchandising