President William Ruto, on Wednesday, November 30, launched his flagship promise of the Hustlers’ Fund in a ceremony held at the Green Park Terminus in Nairobi.
The fund will provide 500 times cheaper credit to Kenya with a daily interest rate of 0.002 per cent. There are four categories of loans: personal finance, microloan, SMEs and start-ups.
The range for the personal loan category will be between Ksh500 and Ksh50,000, which should be repaid within 14 days. SMEs and start-ups can access loans of up to Ksh250,000.
Loan limits will be based on credit scores, which implies that the time taken to service a loan will play a major factor in processing future loans.
How to Apply
According to the ministry, applications for the loan will be through a USSD code *254# that will lead the user to a menu.
Alternatively, you can also access the credit facility through mobile applications provided by mobile money service providers in the country.
Dial USSD code *USSD code# or mobile application.
Select the loan request option to view the limit, interest, and loan tenure.
Enter the loan amount and press OK to continue
Confirm loan details as displayed to continue
Enter Mobile Money pin
Receive SMS notifications on Loan allocation with relevant loan information.
Can You Get More Than One Loan
No. You can only get one loan at a time and qualify for another loan if you pay your loan in full.
Qualified borrowers are eligible for only one loan at a time hence multiple loan borrowing on varied networks is prohibited.
If Borrowed Erroneously, Can the Amount Be Reversed
No reversal is allowed. You will have to repay the loan.
How Much Money Will Be Sent to My Phone
Upon approval, 95 per cent of the money will be disbursed to the mobile money account, while the remaining five (5) per cent will be sent to your savings account for the Hustlers pension program.
Can You Change Your Number and Transfer the Loan to a New Number
You cannot change your number or register more than two numbers.
"The customer can only opt-in once with a unique identifier as National ID. If you need to register another number, you will need to opt-out of the current line," Hustler Fund guidelines state.
Your money is also safe when you lose your phone and have a hustler fund.
"Once you replace your SIM card at your Mobile Network Operator outlet, you can access your Hustler Fund account using your current Mobile Money PIN.
"After a SIM swap, will your line pick the Hustler Fund account you had on a previous line, and you do not need to opt-in again."
Requirements for Application
Among the requirements set by the government for prospective beneficiaries include an age limit that requires applicants to be at least 18 years old.
The responsibility to roll out and implement the plan is bestowed on the Ministry of Co-operatives and MSMEs.
- Must be a Kenyan citizen of 18 years of age and above
- Must have a valid national Identification Card (ID)
- Must have a registered mobile number from a recognized Mobile Network Operator in Kenya, i.e., either Airtel, Safaricom or Telkom, i.e., either Airtel, Safaricom or Telkom
- Have a mobile money account, i.e., either Airtel Money/M-PESA/T-Kash
- The SIM card in question can/ will only be eligible if it has been used for more than 90 days.
- Reside and conduct economic activities in Kenya.
- Provide the Location of residence during the onboarding process (where applicable)
Penalties of Default for the Personal Finance Loan
15 days after the default date, the interest rate will be adjusted to 9.5 per cent per annum.
Thereafter persistent default spanning 30 days and over will see you lose your existing credit score and your account frozen.
Interest continues to accrue pegged on the in-duplum rule, and recovery methods will be initiated.
How to Opt Out
You can opt out of the Hustler funds loan, but you will still have the option to continue saving on the service