If you have taken out a loan with FairCash, you may be wondering how to make your payments. Fortunately, paying back your loan is a straightforward process, and there are several options available to you.
One option is to make your payments online through the FairCash website. To do this, you will need to log in to your account and navigate to the payment section.
From there, you can enter your payment information and submit your payment. This is a convenient option that allows you to make your payments from the comfort of your own home.
Loan Repayment Process
Once you have received a loan from FairCash, it is important to know how to repay it promptly to avoid any late fees or penalties. Here are the two ways you can repay your loan:
Online Repayment
Online repayment is the most convenient way to repay your FairCash loan. You can repay your loan by logging into your FairCash account and following these steps:
- Click on the “Repay Loan” button.
- Choose the amount you wish to repay.
- Select your preferred payment method.
- Enter your payment details.
- Click on the “Submit” button.
Once your payment is processed, you will receive a confirmation email from FairCash.
Mpesa Repayment
FairCash loans are repaid through M-Pesa using the Paybill number 4074255 and using your phone number as the account number. To repay a FairCash loan, follow these steps:
- Open the M-Pesa menu on your phone
- Select Lipa na M-Pesa
- Select Paybill
- Enter the business number 4074255
- Enter your mobile phone number as the account number
- Enter the loan amount to pay
- Enter your M-Pesa PIN
- Confirm and submit
Understanding FairCash Loans
If you’re looking for a quick and easy way to get a loan, FairCash may be the answer you’ve been looking for. With FairCash, you can borrow loans ranging from KES 2,000 to KES 60,000 with a repayment period of up to 365 days.
Here’s what you need to know about FairCash loans:
Loan Application
To apply for a FairCash loan, you’ll need to download the FairCash loan app from Google PlayStore, register, and apply. After the application process, you’ll receive a loan offer with the loan amount, interest rate, and repayment period.
If you accept the loan offer, the money will be deposited into your M-Pesa account within minutes.
Interest Rates
FairCash loans attract an interest rate of 21% per annum, which is charged on a reducing balance basis. This means that the interest charged decreases as you repay the loan.
However, if you default on your loan, you’ll be charged a penalty fee of 10% of the outstanding loan amount.
Loan Limits
The loan amount you can borrow from FairCash depends on your creditworthiness, as determined by FairCash’s credit scoring system.
The more you borrow and repay on time, the higher your credit score will be, and the more loan amount you’ll be eligible to borrow.
Pros and Cons
Here are some pros and cons of FairCash loans:
Pros
- Quick and easy loan application process
- Loans are disbursed within minutes
- No collateral required
- Flexible repayment period of up to 365 days
- Competitive interest rates
Cons
- Only available on Google PlayStore
- Not available on Apple Stores
- No USSD option to access FairCash loans
Overall, FairCash loans are a great option if you need quick cash without the hassle of collateral or a lengthy application process. However, make sure you can repay the loan on time to avoid penalties and damage to your credit score.
Eligibility Criteria for FairCash Loans
If you’re considering taking out a loan with FairCash, it’s important to understand the eligibility criteria to determine if you qualify. Here are some of the key requirements:
1. Age
To be eligible for a FairCash loan, you must be at least 18 years old.
2. National Identification
You must have a valid national identification card to apply for a FairCash loan.
3. Mobile Phone
You must have a mobile phone that is registered with a mobile network operator to apply for a FairCash loan. The mobile phone should be able to receive SMS and calls.
4. M-Pesa Account
You must have an active M-Pesa account to apply for a FairCash loan. This is because the loan disbursement and repayment is done through M-Pesa.
5. Credit Score
FairCash does not require a high credit score to qualify for a loan. However, you must have a good credit history and be able to demonstrate your ability to repay the loan.
6. Employment
You must have a stable source of income to qualify for a FairCash loan. This can be through employment, business, or any other source of income.
7. Loan History
If you have previously taken out a loan with FairCash, you must have a good repayment history to qualify for another loan.
By meeting these eligibility criteria, you can increase your chances of being approved for a FairCash loan. Keep in mind that meeting these requirements does not guarantee loan approval, as other factors may be considered during the application process.
How to Apply for a FairCash Loan
FairCash loan app is a quick and easy way to get a loan for your small business. The app is available for download on Google Playstore and can be used to apply for a loan anytime, anywhere.
Here’s how you can apply for a FairCash loan:
Online Application
- Download the FairCash loan app from Google Playstore and install it on your mobile device.
- Register by providing your personal information and create an account.
- Fill out the loan application form with accurate information. Make sure you provide all the required information to avoid delays in processing your loan.
- Submit the application and wait for approval. The app will notify you of your loan status within minutes.
Offline Application
- Dial *889# on your mobile device and select the FairCash loan option.
- Follow the prompts to provide your personal information and loan details.
- Submit the application and wait for approval. You will receive a notification of your loan status via SMS.
Whether you apply online or offline, you will need to meet the following requirements to qualify for a FairCash loan:
- Be a Kenyan citizen with a valid ID card.
- Have a registered and active M-Pesa account.
- Have a business that has been in operation for at least 6 months.
- Have a good credit history.
Once your loan is approved, you will receive the funds directly to your M-Pesa account. You can then use the funds to finance your small business needs.
Late Payment Consequences
If you are unable to make your FairCash loan payment on time, you may face some consequences. Here are some of the most common ones:
Late Fees
If you miss your payment deadline, you will likely be charged a late fee. This fee can vary depending on the lender and the type of loan you have. Be sure to check your loan agreement for details on how much you can expect to pay.
Damage to Your Credit Score
Late payments can have a negative impact on your credit score. Once a payment is 30 days late, most lenders will report it as delinquent to the national credit bureaus, which causes a delinquency to appear on your credit reports.
That, in turn, can have a significant negative impact on your credit scores. Lenders don’t report all accounts to the credit bureaus at the same time, so it’s possible that your late payment won’t show up on your credit report right away.
However, once it does, it can stay on your report for up to seven years.
Collection Calls and Letters
If you miss multiple payments, your loan may be sent to a collections agency. This agency will then attempt to collect the debt from you, often through phone calls, letters, and other forms of communication.
These calls and letters can be stressful and may even feel harassing at times. However, it’s important to remember that the collections agency is simply trying to collect the debt that you owe.
Legal Action
In extreme cases, lenders may take legal action against borrowers who fail to make their loan payments. This can include wage garnishment, property liens, and even bankruptcy proceedings.
It’s important to remember that legal action is a last resort for lenders, and they will typically only take this step if all other attempts to collect the debt have failed.
Tips for Efficient Loan Repayment
When it comes to paying off your FairCash loan, there are a few tips and tricks that can help you manage your payments more efficiently. Here are some strategies to consider:
1. Create a Budget
The first step to managing your loan repayments is to create a budget. This will help you determine how much you can afford to pay each month without putting undue strain on your finances.
Make a list of all your income sources and expenses, and then see how much you have left over for loan repayments.
2. Pay More Than the Minimum
Paying more than the minimum amount due each month can help you pay off your loan faster and save you money in interest charges. Even if you can only afford to pay a little bit extra each month, it can make a big difference in the long run.
3. Consider Bi-Weekly Payments
Instead of making one monthly payment, consider making bi-weekly payments. This can help you pay off your loan faster and save you money in interest charges. For example, if your monthly payment is $200, you could pay $100 every two weeks instead.
4. Automate Your Payments
Setting up automatic payments can help you avoid late fees and ensure that your loan payments are always on time. This can also help you stay on track with your budget and avoid missed payments.
5. Look for Ways to Increase Your Income
If you’re struggling to make your loan payments, consider looking for ways to increase your income. This could include taking on a part-time job, selling items you no longer need, or freelancing in your spare time.
By following these tips, you can manage your FairCash loan repayments more efficiently and pay off your loan faster. Remember to always prioritize your loan payments and make them a top priority in your budget.
Frequently Asked Questions
How can I make payments on my FairCash loan?
You can make payments on your FairCash loan by logging in to your account on the FairCash website or mobile app. From there, you can select the “Make a Payment” option and follow the instructions to complete your payment.
What payment methods are accepted for FairCash loans?
FairCash accepts a variety of payment methods, including debit cards, bank transfers, and automatic payments. You can choose the payment method that works best for you when making your payment.
Is there a penalty for paying off my FairCash loan early?
No, there is no penalty for paying off your FairCash loan early. In fact, paying off your loan early can help you save money on interest charges.
Can I set up automatic payments for my FairCash loan?
Yes, you can set up automatic payments for your FairCash loan by logging in to your account on the FairCash website or mobile app and selecting the “Automatic Payments” option.
From there, you can choose the payment frequency and amount, and your payments will be automatically deducted from your chosen payment method.
What happens if I miss a payment on my FairCash loan?
If you miss a payment on your FairCash loan, you may be charged a late fee. It’s important to make your payments on time to avoid late fees and potential damage to your credit score.
Are there any fees associated with making payments on my FairCash loan?
FairCash does not charge any fees for making payments on your loan. However, you may be charged fees by your bank or payment provider depending on the payment method you choose.
Final Thoughts
In conclusion, paying back your FairCash loan is a straightforward process that can be done in a few easy steps. Remember to make your payments on time to avoid any late fees or penalties.
If you are unable to make a payment on time, reach out to FairCash customer support to discuss your options.
Here are some final tips to help you pay off your FairCash loan successfully:
- Set up automatic payments to ensure that you never miss a payment deadline.
- Keep track of your payment due dates to avoid late fees.
- If you are unable to make a payment, contact FairCash customer support as soon as possible to discuss your options.
- Consider paying more than the minimum payment amount to pay off your loan faster and reduce the total amount of interest you will pay.
- Always read and understand the terms and conditions of your loan agreement before accepting the loan.
By following these tips, you can successfully pay off your FairCash loan and improve your credit score in the process. Remember to always borrow responsibly and only take out loans that you can afford to repay.
