Equity Bank has launched a new digital credit feature called Boostika that allows customers to instantly borrow small amounts when they lack sufficient funds to complete transactions.
The product aims to take on Fuliza, a continuous overdraft service from Safaricom that lets M-PESA customers complete transactions when short on funds.
The new product, available through Equity’s mobile banking platforms, prompts customers with loan offers ranging from KES 100 to KES 100,000 when they attempt payments or transfers without enough money in their accounts. Customers can accept the loan offer with a few taps to seamlessly complete their transaction.
According to Equity, customers can repay Boostika loans in full or make partial payments within 30 days. Interest rates are 18 percent Annual Percentage Rate and processing fees are 5 percent, with no collateral required.
Customers and experts welcomed the product as an innovation that gives consumers more financial flexibility.
To be eligible for Boostika, Equity customers must have an active account for at least six months with a good repayment history. While customers can take a Boostika loan as often as needed, Equity said each customer’s limit is reviewed monthly and can be adjusted based on account activity and past repayments.
According to the FAQ section, Boostika loans can be used when making payments, sending money, or buying airtime through Equity’s 247, EazzyNet, or mobile app platforms. “Any Equity customer sending money or making a payment using 247#, Equitel or Equity Mobile App and runs low on funds gets a Boostika prompt with their limit to complete a transaction,” the FAQ states.
The FAQ also outlines the full terms, fees, and repayment options. “The Boostika facility is repayable within 30 days,” it says. “Amount due for Boostika will be repaid through an Auto Sweep from borrower’s operative account or a customer can decide to prepay or clear in full.”
