Boostika vs Fuliza: Analysis of Equity Bank and Safaricom Overdraft Features & Repayment Terms
Two giants, Equity Bank and Safaricom, have innovative overdraft facilities – Boostika and Fuliza, respectively. We dive into the details of these products, comparing their features, repayment terms, and eligibility criteria.
Equity Bank Boostika
The Genesis of Boostika
Equity Bank Kenya has stepped into the realm of overdraft solutions with the introduction of Boostika. This financial tool empowers customers to seamlessly execute transactions even with a low account balance. In a market already acquainted with Safaricom’s Fuliza M-Pesa, Boostika stands out with its unique features and capabilities.
Distinguishing Features
While Boostika and Fuliza share the common goal of aiding customers facing insufficient account balances, they diverge in terms of payment structures, limits, and additional features. Equity Bank’s Boostika extends a minimum overdraft limit of KSh 100, scaling up to a maximum of KSh 100,000. Notably, the assigned limit is contingent upon account activities and the customer’s credit score.
Eligibility Criteria for Boostika
Equity Bank has opened the doors to Boostika for its customers engaged in mobile wallet transactions or conventional banking activities. This versatile service caters to payments for goods and services via the One Equity Till number 247247, as well as airtime purchases. Accessing Boostika is prompt and efficient – a message prompts customers to accept Boostika when their account balance is low, and transactions are swiftly executed through USSD 247#, Equitel, or the Equity Mobile App.
Boostika in Action
Receiving acclaim for its convenience, Boostika proves beneficial, especially during critical times such as back-to-school seasons. Customers express satisfaction with its utility, utilizing the facility for timely top-ups, like covering school uniform expenses.
Safaricom Fuliza: A Competitor in the Overdraft Arena
Fuliza Limits and Eligibility
In the Safaricom ecosystem, Fuliza takes center stage as an overdraft facility available to M-Pesa customers. Every registered M-Pesa line functions as a separate account for Fuliza. Similar to Boostika, Fuliza subscribers need to be active M-Pesa users for at least six months. A commendable credit score is a prerequisite for both facilities to enhance the overdraft limit.
Limit Reviews and Frequency
Boostika and Fuliza adopt different approaches to limit reviews. While Boostika evaluates the limit on a monthly basis, scrutinizing the repayment history, Fuliza’s limits undergo review every three months. Fuliza limits can reach up to KSh 70,000, influenced by the frequency of M-Pesa service usage.
Repayment Terms
Equity Bank Boostika Repayment
Boostika offers a flexible repayment period of up to 30 days. Repayments are automated through an Auto Sweep from the borrower’s operative account. Noteworthy fees include a processing fee (LACE) of 5%, insurance at 1%, excise duty of 20%, and an annual interest rate of 18%.
Safaricom Fuliza Repayment
Fuliza M-Pesa operates on a repayment window of 30 days also. The repayment structure involves a daily maintenance fee, contingent on the borrowed amount, an excise duty of 20%, and a tariff fee. Failing to settle within 30 days restricts access to the Fuliza M-PESA limit.
Where Do They Serve?
Understanding the distinctive applications of Boostika and Fuliza is crucial. Boostika comes to the rescue when funds are low during transactions or when making payments, sending money, or purchasing airtime. On the other hand, Fuliza caters to a broader spectrum, facilitating payments for goods and services, airtime purchases, and cash withdrawals at M-Pesa agents within the set limit.
As the financial landscape evolves, Boostika and Fuliza emerge as formidable contenders in the realm of overdraft solutions. Equity Bank and Safaricom, with their innovative offerings, aim to redefine financial accessibility for their customers, ushering in a new era of seamless transactions and enhanced convenience.
