M-Shwari loan recovery is based on a borrower’s national identification (ID) number and not the phone number used to access the service, Loop has clarified, dismissing a common misconception among mobile loan users.
The clarification follows reports that some borrowers have been taking loans from M-Shwari and later discarding the phone numbers used to access the service, hoping this would prevent recovery of the borrowed funds.
Loop, a subsidiary of NCBA bank clarifies that
such tactics do not work as all M-Shwari loans are managed and tracked at the ID level.
During registration, loans are tied directly to the national ID provided by the customer, not the mobile line itself. While phone numbers are registered to an ID, the primary identifier for loan management and recovery remains the borrower’s ID number.
This means that if a customer defaults on a loan and later registers a new SIM card using the same ID, the outstanding loan can still be recovered through the new line or any other accounts linked to that ID.
The bank further noted that it reserves the right to recover unpaid loans from any account held under the same ID, in line with the bank’s Right of Lien.
Loop also reassured Kenyans that recycled phone numbers are safe. If a person is assigned a phone number that was previously used by a different individual, they will not be held responsible for the former user’s outstanding M-Shwari loan. Any defaults remain linked to the original borrower’s ID, not the new user.
Additionally, Loop emphasized that Credit Reference Bureau (CRB) listings are ID-based. Missed payments and loan defaults follow the borrower’s ID, regardless of how many phone numbers they use.
Customers are encouraged to check which phone lines are registered under their ID by dialing *106#, to better manage their accounts and avoid unexpected deductions.