Mpowa loans: terms, fees and requirements

Mpowa’s “How it works” page gives the order. Complete the online application by 3pm and create your account; a loan contract is emailed to you immediately; you sign online and upload your latest 3 months of bank statements or payslips; Mpowa phones you for a voice recording of the contract details; the cash is transferred at 5pm. The FAQ adds the condition: same day only if Mpowa gets your documents and can confirm your employment on the same day.

The registration form asks for your name, ID number, mobile number, email, net monthly salary after deductions, your monthly debit orders and expenses, and your payday, plus permission to run a credit check. Mpowa says the first loan comes with a free credit check. Before the money is released you must authorise a DebiCheck request in your internet banking or app: Mpowa’s DebiCheck page gives 4pm (11am on Saturdays) as the deadline.

Mpowa’s lending policy says its system offers the maximum amount it can, and that you may decline and take a smaller amount at any time before you sign.

The requirements block above shows Mpowa’s FAQ answers: at least 3 months in your current job, and living anywhere in South Africa. The lending policy adds how it decides. It looks at your gross salary, net salary after deductions, the length and type of your employment and a credit bureau report, and calls its criteria “conservative by industry standards”.

Does Mpowa lend to people with bad credit?

On the pages we read, Mpowa publishes no minimum score and no rule on blacklisting. It says the bureau check covers your credit history and payment habits. Compare other lenders in loans for bad credit if you expect questions about your record.

What to check in the fees

The costs are in the block above. Mpowa writes the initiation fee three ways. The home page says R165 plus VAT on a loan up to R1 000, then 10% above that. A second table on the same page says 16.5% of the loan up to R1 000, then 10%, “limited to 15% plus VAT”. The lending policy says 16.5% of the first R1 000 and 10% of the rest, plus VAT, and mentions no limit. On a R1 000 loan that is R165 on the first and third readings and R150 on the second (16.5% is R165, 15% is R150), before VAT. Mpowa says every offer shows all fees on its quotation page, so compare that figure with these readings before you accept.

Late payment and repeat loans

Mpowa says interest of 3% a month accrues on outstanding balances, an external debt collector may add collection fees, and an unpaid account shows on your credit profile. Tell Mpowa about a change of bank or job details before payday. A renewal is “not automatic”, you qualify for the same amount until you have repaid 3 loans in a row, and then you can ask for an increase. Mpowa says it charges no up-front fees when you reapply.

Login is in the menu of mpowafin.co.za. The home page also has an “Already approved?” box: log in to check the status of your loan application. After you have repaid, the same login lets you apply for a new loan.

The contact page lists 0861 228 228 and, marked with an SMS icon, 083 736 0165. Office hours are Monday to Friday 07:00 to 16:00 (payments made at 17:00) and the last Saturday of each month 08:30 to 11:30 (payments made at 12:00). There is an enquiry form on the same page. Mpowa does not list a WhatsApp number on its home, FAQ, how-it-works or contact pages.

Mpowa asks for at least 3 months in your job and repays in one go on payday. If you have changed jobs recently or want a different lender, compare Crediwise and Creditbar first, then the loans list. Boodle, Sunshine Loans and Wonga have cards with their own requirements, and the payday loans guide explains how this kind of loan is repaid.