M-Pesa Loan Management System: Disburse and Collect Automatically
Lendpoint is an M-Pesa loan management system. It sends approved loans straight to your borrowers' M-Pesa and matches every Paybill and STK push repayment to the right loan automatically. It is built for Kenyan SACCOs, MFIs and digital lenders who are tired of reconciling M-Pesa statements by hand.
The M-Pesa reconciliation problem
In Kenya, most loan repayments arrive through M-Pesa, but most lenders still match those payments manually. Someone downloads the Paybill statement, reads each transaction and finds the borrower behind each phone number or account reference. Then they update a spreadsheet. It is slow, and it is where errors and staff fraud hide. Borrowers who paid on time get reminder calls, and borrowers who didn't pay are missed.
An M-Pesa-integrated loan management system removes that step entirely.
How Lendpoint connects to M-Pesa
Disbursement with M-Pesa B2C
When a loan is approved, Lendpoint can send the funds to the borrower's phone through Safaricom's B2C API. The disbursement is recorded against the loan and posted to the general ledger, and the borrower gets an SMS confirming the amount sent, the total repayment and the due date.
Repayments through your Paybill (C2B)
Borrowers pay to your Paybill as they already do. Lendpoint receives each payment instantly through the C2B API and applies it to the borrower's outstanding installments in due-date order. Partial payments reduce the oldest installment, and larger payments clear several. Anything above the total due is credited to the borrower's wallet.
STK push for the exact amount
Instead of asking borrowers to type a Paybill number and account, you can send an STK push. The M-Pesa prompt pops up on their phone with the exact installment amount, and they just enter their PIN. Fewer typos means fewer unmatched payments.
Repay over USSD
Borrowers can also start a repayment from Lendpoint's USSD menu on any phone, check their balance and get a mini-statement.
Bank payments too
Not every payment comes through M-Pesa. Lendpoint integrates with KCB through the Buni API, and cash or bank payments recorded by staff post to the same ledger. One loan balance covers every channel.
Start a free trial and connect your Paybill
What you get once M-Pesa is connected
| Before | With Lendpoint |
|---|---|
| Loans paid out manually from the business phone or bank | Approved loans sent to M-Pesa automatically |
| Daily or month-end statement reconciliation | Each repayment matched to its loan the moment it lands |
| Borrowers chased for payments they already made | Accurate balances, so reminders only go to borrowers who owe |
| Ledger and M-Pesa statement disagree | Every movement posted with balances before and after |
| Arrears discovered at month end | Overdue installments flagged and reminded automatically |
Automatic SMS at every step
Borrowers receive SMS notifications when their loan is approved and disbursed, before and on each due date, when a payment is received, when an installment is overdue or penalised, and when the loan is fully repaid. They always know where they stand, which cuts the calls to your office.
What you need to connect M-Pesa
- A Paybill or till number registered to your business.
- Access to Safaricom's Daraja API for that shortcode. We guide you through the application.
- A Lendpoint account. Our onboarding team connects your credentials and runs test transactions with you.
For a deeper technical walkthrough, read how to automate M-Pesa loan repayments: Paybill, STK push and C2B explained.
Lendpoint runs the whole loan lifecycle, not only payments. See it for SACCOs, microfinance institutions and digital lenders.
Pricing in Kenyan shillings
Lendpoint publishes its prices, so you know what you will pay before you talk to anyone.
| Plan | Best for | Monthly | Yearly |
|---|---|---|---|
| Starter | Individual lenders, single-branch SACCOs and MFIs | KES 5,000 | KES 50,000 |
| Professional | Multi-branch and growing lenders | KES 8,000 | KES 80,000 |
| Enterprise | High-volume lenders and custom integrations | Contact sales | |
A one-time KES 10,000 onboarding and migration fee applies. Every plan starts with a 7-day free trial, with no credit card required. Compare plans in detail.
Frequently asked questions
Can a loan management system disburse loans directly to M-Pesa?
Yes. Lendpoint uses Safaricom's M-Pesa B2C API to send approved loans straight to the borrower's phone, and records the disbursement against the loan and in the general ledger.
How are M-Pesa repayments matched to loans?
Repayments to your Paybill arrive through the M-Pesa C2B API and are matched to the borrower's loan automatically. You can also send an STK push so the borrower just enters their M-Pesa PIN to pay the exact installment.
What do I need to connect M-Pesa?
A Paybill (or till) number registered to your business and access to Safaricom's Daraja API. Our onboarding team helps you set up the credentials and connect them to Lendpoint.
Can I also accept bank payments?
Yes. Alongside M-Pesa, Lendpoint integrates with KCB through the Buni API, and payments recorded manually are posted to the same ledger.
Does Lendpoint send SMS reminders?
Yes. Borrowers get SMS notifications for approval, disbursement, upcoming due dates, payments received and overdue installments.
What happens if a borrower pays the wrong amount?
Payments are applied to installments in due-date order, so a partial payment reduces the oldest installment and a larger payment clears several. Anything above the total outstanding is credited to the borrower's wallet. Every movement is recorded in the ledger with the balance before and after.