Hustler Fund is one of the biggest promises made by the Kenya Kwanza administration during their campaign. The president H.E. William Samoei Ruto has today launched the fund. This, is something to celebrate. isn’t it? Well, this is what you need to know about the hustler fund.
What is Hustler Fund?
Hustler Fund is a digital financial inclusion initiative designed to improve financial access to responsible finance for personal, micro, small, and medium-sized enterprises (MSMEs) in Kenya.
How to Access The Hustler Fund Loan
According to the Ministry of Cooperatives and MSME Development, borrowers will be able to apply for the Hustler Fund loan through USSD code *254# and on the mobile apps of Safaricom, Telkom, and Airtel.
To register an account on the platform, a customer is required to sign up for the fund through the USSD code *254# or the mobile app. They will then be required to accept the Terms and Conditions to join the fund. Thereafter, enter their mobile money pin.
Upon fulfillment of these steps, an SMS will be sent to notify them of their successful registration and the limit assignment.
In the event of a failed registration, the borrower will be notified via SMS.
When the customer borrows, the approved loan will be disbursed to their mobile money account where out of the total approved loan amount, 95% shall be deposited to the mobile money wallet.
How To Increase Loan Limit on Hustler Fund
The loan limits for Hustler Fund will be a minimum of Ksh. 500 up to a maximum that will be determined by the borrower’s credit score and capped at Ksh.50,000.00.
The loan limit of a borrower has the ability of rising to a higher amount depending on their behaviours in borrowing and repaying.
“The limit shall be reviewed and adjusted based on the borrowing and repayment history of previous Hustler Fund loans taken.” The ministry of Cooperatives and MSMEs says.
Therefore, borrowers are encouraged to continue using Hustler Fund and pay their loans on time.
Assessment of credit history on subsequent loan applications and repayment shall apply to determine subsequent qualifications for the facility.
Read also: Survey Jobs in Kenya That Pay Through Mpesa
What Happens If You Fail to Pay The Loan?
In case a borrower does not repay the loan within the set 14-day period, a loan recovery and collection process will be initiated.
Before the repayment, one will not be eligible to apply for another loan.
There will be penalties imposed on the defaulters where 15 days after the date of default. The interest rate will be adjusted from 8% per annum to 9.5% per annum.
We really hope you learned what you need to know about the Hustler Fund. However, by the time of publishing this article, the service is not yet live.
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