Kenyans have borrowed Ksh33 billion from Hustler Fund since the small loans project was launched in late 2022, Cooperatives and Micro and Small Enterprise Cabinet Secretary Simon Chelugui announced on Monday, July 17.
Out of this borrowed amount, Ksh22.5 billion has already been repaid. Additionally, individual account holders have managed to save Ksh1.6 billion, showcasing their commitment to improving their credit score.
In a noteworthy statistic, 20.6 million customers have opted into the fund, resulting in a substantial savings of Ksh1.6 billion.
Conversely, as of Monday, July 16, the fund had successfully attracted a total of 20.6 million users.
At the same juncture, the cabinet secretary revealed transactions amounting to Ksh45.8 million had been made while the number of repeat customers was 7.2 million.
The Hustler Fund offers more affordable credit options to Micro, Small, and Medium Enterprises (MSMEs) in comparison to other digital loan products and Micro Finance Institutions (MFIs).
The fund encompasses four distinct loan categories, namely; personal finance, microloans, SMEs, and start-ups.
Under the personal loan category, borrowers can avail themselves of amounts ranging from Ksh500 to Ksh50,000. The repayment period for these loans is set at 14 days, ensuring a short-term commitment for borrowers.
On the other hand, SMEs and start-ups have the opportunity to access loans up to Ksh250,000, providing them with the necessary financial resources to support and expand their businesses.
Chelugui also disclosed that Ksh110 million has been disbursed through the Hustler Fund's second loan product, known as Hustler Fund Group loans. This offering enables groups to apply for loans within the range of Ksh20,000 to Ksh1 million.
At the reporting period, the total number of groups created under the Hustler Fund Group Loans amounted to 344,978. In this category, some 817,884 members requested loans and their applications were subsequently approved. However, there were still 408,371 members awaiting approval.
The CS also revealed that groups venturing in various entrepreneurial pursuits had recorded a total of 16,352 of unique borrows. As of July 16, 2023, repayment made by the groups totaled to Ksh2.3 million
Still on the group category, the CS further noted that loan requests pending member approval amounted to 2,269.
The Hustler Fund group loans target groups registered by Micro and Small Enterprises Authority (MSEA). It offers loans at an interest rate of seven per cent per annum on a reducing balance of 1.5 per cent default rate.
