President William Ruto, on Thursday, June 1, launched the second phase of the Hustler Fund, targeting groups such as chamas and Saccos.
The Group Micro Enterprise Loan products allow members to apply for between Ksh20,000 to Ksh1 million.
"It is now my honour and pleasure to introduce and officially launch the second product of Hustler Fund, the Hustler Group Loan," Ruto stated.
"I am glad that this launch of the group loan product is taking place against the backdrop of the phenomenal success of the Hustler Fund Personal Loan product. I expect this product will encounter even greater appetite from the market," he added.
According to the Head of State, the second product of the Financial Inclusion Fund will enable groups to overcome exclusion and barriers to participation in credit, savings, social security, health insurance and other socioeconomic amenities.
Borrowers, he stated, have accessed nearly Ksh30 billion, and repaid Ksh19.7 billion, with 7 million being loyal or repeat customers.
"Not a single shilling has been stolen through corruption, and borrowers do not need to know anyone, bribe any official or go through complex bureaucratic procedures to access the Hustler Fund. They only need a device, a little airtime and a few minutes, and they can get money wherever they are.
"On its way to becoming the biggest financial institution by the number of borrowers and active loans effectively, the Hustler Fund also turned around the country’s fintech, transforming it from a predatory ecosystem to a more responsible one," he underlined.
Safaricom, he highlighted, enrolled at least 2 million new subscribers into its financial ecosystem courtesy of the Fund.
"Without a doubt, the Hustler Fund has been more than transformational; it is revolutionary.
"This engagement with the business community inspired the creation of the Financial Inclusion Fund or the Hustler Fund. To eliminate the financial cost, delay, and bureaucracy entailed in complying, the facility employs the latest fintech, powered by Kenyan telecommunications corporations.
"The Hustler Fund also re-engineered the idea of collateral by deploying the borrower’s credit score as effective security," Ruto explained.
Group Micro Enterprise Loan Products (GMELP)
Offers amounts between Ksh20,000 to Ksh1,000,000
Interest rate: 7 per cent per annum on reducing balance and 1.5 per cent default rate
Repayment in six (6) months from the disbursement date. Borrowers can opt to repay in instalments or lump sums.
Saving: 5 per cent of the approved amount respectively, channelled towards group members' savings scheme.
The Groups scoring will be appraised through a credit scoring algorithm based on collective individual members' scores, including but not limited to, their savings and repayment history.
All group members should be Kenyan citizens of 18 years and above with a valid National Identification Card (ID).
A group should comprise of at least 5 members.
Each member should have an active sim card issued by an approved Mobile Network Operator for the last 90 days.
The chama should be verified relevant government Institution
All group members should not have defaulted on the Personal
How to Apply for Hustler Fund
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 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.
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