Equity has launched its Fuliza equivalent, known as Boostika. Fuliza has been a successful product by M-Pesa. In 2023, Ksh502.6 billion was transacted through Fuliza.
This article highlights everything you need to know about Boostika.
Boostika, offered by Equity Bank, is an overdraft facility that allows you to make purchases even when your account balance is insufficient to cover the full amount.
For instance, you are doing your February shopping. You go to a supermarket and pick items worth Ksh10,000. However, your bank balance is Ksh8,000. When paying, enter Ksh10,000, and you will be prompted to Boostika Ksh2000 to make up for the difference.
You can Boostika as many times as you need as long as your Boostika loan limit allows. You can Boostika from Ksh100 to Ksh100,000 without needing collateral. However, you need to pay back the Boostika loan within 30 days.Boostika can be accessed through USSD *247# or the Equity App or Equitel line. In addition, you can also access Boostika services when sending money and buying airtime.A good example is when you have to send money back home, you enter the amount you want to send and continue with the transaction. If your bank balance is insufficient, a Boostika prompt message will pop up, and you can access the balance you need to complete your transaction.
Boostika is available for all Equity Bank customers. However, customers access different amounts of Boostika depending on their account behaviour.
Additionally, Boostika is only accessible when you are making a transaction, whether sending money, making a payment, or buying airtime. You can only access the loan through *247#, Equitel, or Equity Mobile App.
Nonetheless, your loan limit should be sufficient to cover the balance needed to complete a transaction. If you want to Boostika Ksh1,000 and can only access Ksh800 through Boostika, you cannot complete the transaction since your Boostika balance has capped out. Nonetheless, you can finish any transaction of Ksh800 and below.
Moreover, your Equity bank account must have been active for over six months. Remember, Boostika is an unsecured loan; therefore, the bank depends on your account activity to determine how much you can access through Boostika. And as with any other debt facility, your repayment history is key. Mark you, an individual's limit is reviewed monthly. After the review, your limit can be increased or decreased based on your account behaviour, transaction, and repayment history.
Boostika works very easy. To begin with, you must be transacting with your Equity bank account. The transaction can be sending money, paying for stuff, or buying airtime. As you are transacting, just go about it as you usually would, and if your balance is below the transaction amount you have input, you will get a Boostika prompt, which you accept, and the transaction goes through.
Whether using the Equity App, the Equitel line, or Ussd, just transact as you normally would, and you will access Boostika.
Boostika attracts a 5% Loan Application and Credit Evaluation (LACE) fee. Therefore, if you Boostika Ksh1000, you will be charged Ksh50 for the LACE fees.
Secondly, you will incur a 1% insurance charge on the amount you have accessed through Boostika. For the Ksh1000 accessed, you will also have to pay Ksh10 for insurance.
In addition, you will also pay an excise duty of 20% of the Loan Application & Credit Evaluation (LACE). Remember, initially, for the Ksh1000 Boostika amount, you paid Ksh50 for the LACE fees. You will need to pay 20% of the Ksh50 as excise duty, which will be Ksh10.
Moreover, you will also have to pay for the interest on the loan. We have established that for a Ksh1000 Boostika loan, you have to pay Ksh50 LACE charges, Ksh10 for insurance, and Ksh10 for excise duty. That adds up to Ksh70.The Boostika interest rate is 18% per annum. That is equivalent to 1.5% per month. Since a Boostika loan is supposed to be paid back within 30 days, it is more beneficial to calculate your interest cost monthly.
Now that we have established that you will pay Ksh70 in fees, insurance, and excise duty on a Ksh1000 loan, how much will you pay in total, including your interest rate?
At an interest rate of Ksh 1.5%, Ksh1000 will attract an interest payment of Ksh15. Therefore, Ksh1000 will cost you Ksh85 if you pay it back within 30 days.
Boostika’s first benefit is convenience. The Boostika option is embedded in the transaction journey. You do not have to get from one application to another to access Boostika. You transact as you would normally, and through a Boostika prompt, you finish your transaction. To add to the convenience, it is instant. You do not need to wait for approvals or anything.
Another benefit of Boostika is accessibility. Boostika is accessible through multiple channels. You can access it through USSD, the app, or Equitel. The multiple access options make the product available to you at any time, whether online or offline.
Additionally, you can Boostika as often as possible, provided you have a loan limit to complete the transaction. Furthermore, the loan limit can vary between Ksh100 and Ksh100,000, which, depending on your limit, allows you to make as many transactions as possible.
The minimum limit for Boostika is Ksh100, and the maximum is Ksh100,000.
Dial *247# and go to “Borrow” then “View Loan Balances.”
Using Equity Mobile App
Go to “Borrow,” then “Get Loan,” then “Eazzy Loan,” then “Loan Balance.”
Go to “My Money,” then “Eazzy Loan,” then “Loan Balance.”
The Boostika loan is paid through an auto sweep of the transacting account. On the other hand, you can also pay it partially or in full using the USSD, Equitel line, or through the app.
Dial *247# and go to “Borrow,” then “Check Loan Limit,” then “Eazzy Loan.”
Using Equity Mobile App
Go to “Borrow,” then “Get Loan,” then “Apply Loan”, then “Check Loan Limit.”
Go to “My Money,” then “Eazzy Loan,” then “Loan Limit.”
Boostika cannot be withdrawn. It is only meant to help you complete a transaction that would have otherwise not gone through because of insufficient funds in your account.