President William Ruto's administration, on Wednesday, November 30, launched the Ksh50 billion Hustler Fund kitty, targetting low-income earners to boost their businesses and simultaneously enhance a savings culture.
Hustler Fund consists of four products under the fund, including personal finances, microloans, SME loans and Startups. For the personal finance scheme, the amount one can take begins at Ksh500 and is capped at Ksh50,000, depending on one's score. SMEs and Startups can access up to Ksh250,000.
The rate is calculated at eight per cent per annum and prorated to 0.02 per cent per day. You can also apply through a USSD code *254# or via a mobile application platform of any of the mobile network operators in Kenya.
How do I Repay My Loan?
Once you borrow a loan, the repayment will be made from your Mobile Money account, such as Self-payment.
The loan repayment period is capped at 14 days with an interest of 8 per cent per annum.
This allows you to repay the loan as a lump sum or in part, provided the full repayment is done within 14 days.
What Happens If I don't pay on time?
Your credit rating is negatively affected if the loan is not repaid within the stipulated days.
This means you cannot take another loan until the current one is repaid.
You may re-pay the loan in full or in part, provided the full repayment is done within 14 days. All transaction notifications will be through SMS.
15 days after the date of default the interest rate will be adjusted to 9.5 percent per annum.
Loan Recovery Process
To enhance efficiency and allow effective monitoring and evaluation of the loan recovery process, an SMS will be sent of the due date and outstanding amount five days before the deadline.
On the 13th day, the customer is notified that the facility is due. On D-day, you will be notified that the payment is overdue.
After the due date, you shall not be eligible to apply for any other product with the Fund until the outstanding amount is paid.
Overdue reminders shall be sent every five days up to 30 days.
How Can I Increase My Loan Limit?
The limit increase will depend on your performance on consistent loan borrowing and repayment on time.
Your score is calculated when you continue using Hustler Fund and paying the loan on time.
In addition, the limit shall be reviewed and adjusted based on the borrowing and repayment history of previous Hustler Fund loans taken.