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.