Micro Saving and Lending (MSL) Product
1. Product Description
MSL is a mobile saving and lending service offered to CBE Birr Customers. It
is the trending product from CBE which allows CBE Birr subscribers to have bank
accounts right via their mobile phone numbers; hence a mobile bank. You can save,
contract a loan and transfer money seamlessly on the MSL platform.
How to Use
To use MSL, as you may already know, you have to be on the CBE Birr platform. Follow
the below steps to access the MSL feature:
1. Navigate to your Sim Toolkit menu.
2. Go to M-pesa → My Account → Update Menu
3. At this point you will be asked to input your pin, key it in and press send, then
wait for about 15 seconds.
- Next, you will get an M-pesa screen prompt telling you that your menu has
updated....or something close to that.
4. Go to Sim Toolkit → M-pesa, and you should see an M-Shwari menu.
5. Click on the menu; it will ask for activation upon which your click on “Activate”,
input you M-pesa pin and you are done! Wait for about 10 minutes
6. For subsequent use, just follow the menu at all times.
Why to Use
•
There is zero cost to transfer between MSL and CBE Birr account and any other
account.
• You can take quick loans from M-Shwari to Mpesa
• You can save on M-Shwari and earn interest.
- You can borrow as little as Ksh 100; maximum of Ksh 20, 000
- No minimum balance and maximum balance of Ksh 100,000
When to Use
The reasons on when to use will depend on its capability and individual needs. Just
remember:
- You cannot transfer cash from one M – Shwari account to another
- You cannot transfer cash from M- Shwari to your other bank account.
More can be found from the Safaricom website →
http://www.safaricom.co.ke/personal/m-pesa/m-shwari
M-Shwari
M-Shwari is a savings and loan service that enables M-PESA customers to;
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Save as little as Kshs. 1, and access credit from Kshs. 1,000.
Earn interest of up to 6.3% p.a. on your savings balance.
Save for a fixed period of time
Access loans instantly, credited to your M-PESA account from a minimum of Kshs.
1,000 and up to Kshs. 1million account charged at 9% Being Loan Fees of 7.5% and
1.5% Excise Duty. Excise duty is deducted from the loan amount to be sent to M-PESA
How to qualify for a loan
1. Be an M-PESA subscriber for at least 6 months
2. Save on M-Shwari
3. Actively use other Safaricom services such as voice, data and M-PESA.
What should I expect when I borrow?
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Access loan limits from as low as Ksh.100 and up to Ksh.50,000.
Enjoy a one month repayment period.
Loan repayment can be made via M-PESA, or from the M-Shwari account.
How does it work?
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Access the M-PESA menu.
Select Loans and Savings.
Select M-Shwari.
Select Loan.
Request Loan.
Enter amount.
Enter your M-PESA PIN
Loan amount will be sent to your M-PESA Account. The loan amount to be paid will be
in inclusive of the facility fee.
Lock Savings Account
This is a savings account that allows M-Shwari customers to save for a defined purpose and for a
specified amount of time.
The funds saved on the M-Shwari Lock savings account will be kept in the account until the
maturity date; this maturity date is determined by the customer upon opening the account and
ranges between one and twelve months. Customers can make micro deposit into this.
The M-Shwari Lock Savings account is ideal for customers looking for higher interest rates and
those wishing to keep money away safely for one to six months.
What are the requirements of opening a Lock Savings Account?
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One must be an M-Shwari customer in order to access this service.
To join M-Shwari, Go to your M-PESA menu, select “My account” and “Update menu”
then go to your M-PESA menu, select Loans and Savings, Mshwari, click on activate
account and accept terms and conditions.
What are the benefits of opening a Lock Savings Account?
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No minimum savings
There are no charges levied on the M-Shwari Lock Savings account.
The interest rate is constant during the investment period, and is calculated and paid out
monthly or at maturity.
The Lock period varies from one month to six months depending on the customer needs.
What interest will be payable on the M-Shwari Lock Savings Account?
M-Shwari lock savings interest is earned daily but paid out monthly into the lock savings
account.
(Table on site)
How does one access the Lock Savings Account Menu?
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On the M-PESA menu, go to Loans and Savings
Select M-Shwari
Select Lock Savings Account
How do I Open and Save into Lock Savings Account?
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Go to M-PESA, Loans and Savings
Select M-Shwari
Select Lock savings account
Open an account
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Select to save from either M-PESA or from M-Shwari
Enter Target Amount,
Enter period between 1-6 months
Enter amount to save
You will receive an SMS confirmation that your Lock Savings Account has been set up.
The next time you save, go to the Lock Savings option under M-Shwari, select to save
from either M-Shwari or M-PESA, enter amount and then your M-PESA PIN to complete
your transaction.
How will I know that my money in M-Shwari Lock Savings has matured?
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Upon maturity, a notification will be sent to you via SMS from M-Shwari informing you
of the amount saved and the interest earned.
Can a customer withdraw their funds before maturity date?
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However, a customer will receive the requested money after 48hours. A customer has the
option to withdraw the entire amount or make a partial withdrawal of the funds.
Product
Digital Micro Saving and lending Service(brand name will be
Name:
given).
Product
A Banking products that provide convenience, reliability, and
Offering
cost-effectiveness for making micro-savings and taking micro
loans
Target
All CBE Birr Customers
Market
Product
It is mobile saving and lending service offered to CBE Birr
definition
Customers. Deposit account gives customers an opportunity
to save as little as Birr 1. A customer also has an opportunity
to access micro loan based on their assigned limit determined
by credit score system. It is instant, automated, and remote.
Benefits 
of
Create customers to ability to open and operate a bank account through
the their, through CBE BIRR account, without having to visit any bank to fill out
service
bank account opening form.
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Ability to move money in and out of their CBE Birr account to DMSL
account.
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DMSL loans are short term instant loans that can be used to manage cash
flow.
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The DMSL saving accounts allow customers to save for specific goal at
competitive interest rate.
Product
 Individuals should be a resident of Ethiopia;
Eligibility for opt
Terms
DMSL
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Individuals aged above 18 years and legal persons;
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Must be a registered CBE Birr customer
 Must be an active CBE Birr customer for a minimum
Eligibility for a
3 months.
limit
DMSL
Facility 30 Day, purely unsecured
term
Minimum
DSML
300
Loan Limit
Maximum DSML 30,000
Limit
Individual
DMSL
Determined by the scoring mechanism
limit
Maximum
No restriction
number of times
one can access
DSML
Maximum
daily 30,000
transaction
Channels
The product will be available through the DSML platform
Operatio
Dial #902* then Select Saving and Loan then select micro
n process
loan/micro saving/fixed saving
DMSL
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Menu
access
Services
Micro Savings
offered 
Ordinary Saving at 7% interest rate
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Target saving at 8% interest rate
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Fixed saving at interest rate of 8% for three months, 8.5% for six months
and 9% for 12 months and above
Charges

No minimum balance requirement to open account
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Electronic customer enrolment and account activation
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•
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Micro Loans- With 7% facilitation fee
Withdrawals
Loan request
Loan repayment
Balance enquiry
Mini statement
Total Cost Facilitation Fee 7% on each loan disbursed and
of loan
roll over fee 2% for all loans principal balance
those are unpaid on day 31
Allowed
Full and partial payment shall be accepted
Payments
Repayment
Full repayment is expected with in 30 days.
period
However a customer can extend the repayment
period by incurring an extra cost of 9% for all
laon principal balances unpaid on day 31.
Settlement
Locking of savings when subscribers has a loan
that is outstanding greater than 30 days. When
a customer tries to access the locked amount
he/she will receive a message telling him telling
him insufficient funds. However, if saving amount
exceeds loan amount subscribers can withdraw
the excess amount.
Bank initiated debits on the subscribers DMSL
saving accounts on day 91 if the loan is still
outstanding.
Other
Saving Features
features 
No minimum balance requirement to open account
of

the
products
Electronic customer enrolment and account activation