How to Repay Your Digifarm Loan?

In my previous article, I covered a lot about Safaricom’s DigiFarm. I explained what the program is, its benefits to farmers, and many other topics including the registration process to become a DigiFarm member. You can find the article here. Having introduced DigiFarm, I’ll now take you through a step-by-step process of repaying your DigiFarm Loan. I will also look at Late Repayment of DigiFarm and what happens to farmers who default. Let’s begin.

Once you collect your inputs from a DigiFarm Master Agent, Safaricom will send you a text message with your loan amount and repayment details. In general, the repayment can be done little by little during the season or once at the end of the season. When paying farmers who have sold their farm produce to DigiFarm, the platform’s automatic check-off process will be used  to deduct the loan amount plus the facilitation fee (usually bundled with 15% insurance cover as I explained here under the subtopic, DigiFarm’s Mavuno Loan”).

The total amount of loan you’ll repay = The facilitation fee (1.83% per month) + the total cost of the inputs the farmer you collected from the DigiFarm Master Argent.

There are two ways you can repay your DigiFarm loan

Method #1: Use the USSD Code *944#, PayBill No. 3014147, and your phone number as the account number as follows:

  • Dial *944#
  • M-PESA menu
  • PayBill, Business No.: 3014147
  • Account No.: 07xxxxxxxx
  • Enter the amount you want to pay
  • Complete the process by following the instructions you are prompted with

Method #2: Use DigiFarm App

  • Open the application
  • Go to “Loan” module
  • Select the option ‘Pay Loan’
  • Complete the process by following the instructions you are prompted with

Late Repayment and Defaulting DigiFarm Loans

Mavuno loan is due for repayment at the end of the crop season for which the farmer took the loan. So, if you loan goes unpaid past this time, it considered late payment. There are penalties attached to both defaulting and repaying late as follows:

Late repayment: 15% of the outstanding loan balance will be charged as late repayment fee. Additionally, irregular and late will cause a decline in the amount of loan you can get from DigiFarm.

Defaulting Mavuno loan: DigiFarm will blacklist the farmer, which means the system will ban the farmer from applying for another loan until the outstanding Mavuno loan is repaid. Also, the defaulter will be reported to CRB (Credit Reference Bureau).  

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