Kenyans can access the Hustler Fund through a USSD code and mobile app platforms offered by mobile network providers like Safaricom, Airtel, and Telkom. T he fund can be accessed by dialing *254# or through their mobile money apps provided by mobile money service providers.
The fund, launched on Wednesday, will offer four different products: start-up loans, micro-loans, SME loans, and personal loans. This is a Ksh.50B fund that can be accessed by all Kenyans
The loan comes with a 14-day repayment period and an annual interest rate of eight percent calculated per day, a customer who borrows KES500 will pay back KES 501.53 after 14 days, representing KES 1.53 in interest.
If the loan is not paid back within 14 days, the customer’s credit rating is affected, and they are given an additional 15 days. If the loan is still not paid back, the interest rate increases to 9.5% per year.
The Hustler Fund account is frozen and the borrower loses all accumulated credit scores after more than 30 days of default.
There is also no CRB listing, so this default has no impact on the debtor’s credit score with other lenders. The borrower who defaults may pay off the loan all at once or in installments, and after full repayment, they may borrow again.
When a customer borrows, the approved loan is sent to their mobile money account, deposits 95 per cent of it in their money wallet, and places 5 per cent of it in their savings account.
The five per cent that goes toward the savings plan is split into 30 per cent for short-term savings and 70 per cent for long-term (pension) savings.
“The amount of money available on the personal loan platform is Ksh500 – Ksh50,000. The next product for chamas will start from Ksh50,000 to Ksh250,000, then the next one will climb up like that as we continue to roll out the fund,” Ruto stated during a Kenya Kwanza Parliamentary Group meeting at State House.
Initially the communication from the cabinet had indicated that the loans will range from a minimum of Ksh500 to a maximum of Ksh50,000. President William Ruto would later on Wednesday clarify that the Ksh50,000 maximum was set for individual borrowers and that other categories would have a higher limit.
Facts About Hustler Fund
- Hustler fund has no committees, No paper work and needs zero connections to access. You only need your phone and a Registered sim card.
- Hustler Fund will be clustered into 3 products: a) Individual Borrowing (Ksh 500 – Ksh 50,000) b). Group Borrowing (Ksh 50,000 – Ksh 250,000) c). SMEs and Co-operative Borrowing.
- 5% of the borrowed amount is automatically saved ie. if let’s say you borrow Kshs. 10,000, ksh. 500 goes to your Savings . You will be able to access 30% of your savings after 6months, 70% after you hit the age of Retirement through NSSF.
- Interest Rate shall be 8% Per year, Translating to 0.2% per day. This interest rate will apply after 14 days of borrowing.
As such, it is now understood that the Hustlers Fund will offer three types of loans, or rather will loan on three different levels.
- Loans to individuals
- Loans to groups
- and Loans to small enterprises and co-operatives.
Ruto on November 16, announced that groups aiming to grow their businesses can apply for amounts between Ksh50,000 and Ksh250,000.
“The next product for chamas will start from Ksh50,000 to Ksh250,000, then the next one will climb up like that as we continue to roll out the fund,” Ruto stated