Equity Bank Kenya has launched Boostika, an unsecured overdraft facility allowing account holders to overdraw by up to Sh100,000. This move enhances transaction convenience and intensifies competition with Safaricom’s Fuliza, setting a new standard in the banking landscape. Boostika, positioned as a solution for insufficient funds during transactions, enables seamless completion of payments, sending money, or buying airtime. Eligibility requires active accounts for six months, with overdraft limits from Sh100 to Sh100,000.
Clients can draw multiple overdrafts within approved limits, and repayment must occur within a month, with an 8.5% effective cost of credit. The facility is integrated into the transaction journey, emphasizing convenience. Associated charges include a five per cent processing fee, 1.5 per cent monthly interest, one per cent for loan insurance, and a 20 per cent excise duty on the processing fee. Equity Bank’s introduction of Boostika reflects its commitment to providing enhanced financial solutions, aligning with its mission of delivering accessible and convenient financial services to a diverse audience.
