Equity Bank Introduces ‘Boostika’ Overdraft Loan to Rival Safaricom’s Fuliza
Equity Bank Kenya has made has yet again made groundbreaking announcement, introducing its latest financial solution, ‘Boostika,’ which is an overdraft loan facility set to challenge Safaricom’s Fuliza.
How Boostika works
The innovative unsecured facility empowers customers to overdraft their accounts, allowing transactions of up to Ksh 100,000 (USD 625), facilitating seamless shopping experiences even when funds are insufficient. Customers can now complete payments, money transfers, or purchase airtime, with the flexibility to repay the borrowed amount within a month, incurring a credit cost of 8.5 percent.
Boostika Eligibility and Usage
To access Boostika, customers must have actively maintained their accounts for a minimum of six months. The facility allows multiple overdrafts, provided the unpaid balance stays within predetermined limits.
Integration for Smooth Transactions
Equity Bank has strategically embedded the Boostika option within the transaction journey. When facing low funds during payments, money transfers, or airtime purchases, customers experience uninterrupted transactions without leaving the payment process.
Transparent Fee Structure
Breaking down the associated charges, Equity Bank applies a five percent processing fee (also termed as a loan application and credit evaluation fee), monthly interest of 1.5 percent, a one percent loan insurance fee, and a 20 percent excise duty on the processing fee.
Competitive Advantage Over Fuliza
Comparing charges, Equity’s Boostika offers a distinctive advantage. With Fuliza imposing an effective interest of 2.3 percent per month, users of Equity’s facility spend 3.7 times less on servicing the overdraft.
Platform Accessibility
Boostika is accessible to Equitel, Equity Mobile App, and *247# users, making it highly appealing to the vast Equity customer base on these platforms.
Dynamic Limits and Convenient Repayment
Equity Group ensures individual limits are regularly reviewed based on account behavior, transactions, and loan repayment history. Repayment for Boostika occurs through an auto-sweep from the borrower’s operative account, providing customers the flexibility to prepay or clear the amount in full via the same platforms used for borrowing.
Equity’s Impressive Transaction Statistics
Equity Group’s data highlights the significant traction of Equitel, which processed 27.5 million transactions totaling Sh1.192 trillion (7.5 Billion USD) in the nine months ending September last year. Additionally, the Equity Mobile application recorded 161.6 million transactions worth Sh1.355 trillion (8.5 Billion USD).
Seizing Financial Control with Boostika
Equity Bank’s Boostika is not just a financial tool; it’s a game-changer. Empowering customers with financial flexibility, competitive rates, and convenient accessibility, it sets a new standard in the world of overdraft facilities. As users embrace the future of seamless transactions, Equity’s Boostika emerges as a true leader in the evolving landscape of banking solutions.
Types of Loans by Equity Bank
Equity Bank offers a variety of loans to meet different financial needs. Here are some types of loans provided by Equity Bank:
- Boostika: A loan product like mpesa fuliza offered by Equity Bank [1].
- Equiloan: A loan option that requires filling out an application form and undergoing an appraisal process [4].
- Salary Advance: A loan tailored for salary earners, providing quick access to funds [2].
- Eazzy Loan: An easy-to-get loan, offering up to KSh3 million instantly without the need for guarantors or extensive paperwork [3].
- Pamoja Biashara Loan: Designed for groups, it facilitates business expansion and acquisition of assets [5].
- Development Loan for SMEs: Tailored for Small and Medium Enterprises (SMEs) to finance business expansion and asset acquisition [6].
- Micro Business Loans: Providing a savings vehicle and tailored loans for working capital, fixed assets, and business premises improvement [7].
- List of Equity Bank Loans (2023): Includes Personal Loans, Merchandise Loans, Home Equity Loans, Car Loans, and Unsecured Loans [8].
- Ultimate List of Equity Bank Loans (2024): Encompasses Personal Loans, Merchandise Loans, Mortgage Loans, Car Loans, and Unsecured Loans [9].
- Equitel Eazzy Loan: Provides instant access to up to KES 3 million without forms or guarantors, eligible for active Equity users [10].
- Personal Loans: Offering benefits like competitive rates, no fees to open or close, and same-day funding [11].
These loans cater to diverse financial needs, from personal to business-related, providing flexibility and accessibility.
