The Hustler Fund Kenya is a government initiative aimed at providing affordable loans to micro, small, and medium enterprises (MSMEs) to foster economic growth and financial inclusion. This fund is a cornerstone of the Bottom-Up Economic Transformation Agenda, focusing on empowering individuals at the grassroots level.
Loan Limits and Eligibility
The Hustler Fund offers personal loans ranging from a minimum of KSh 500 to a maximum of KSh 50,000. The specific amount an individual can borrow is determined by their credit score, which is influenced by consistent borrowing and timely repayment.
Eligibility criteria include being a Kenyan citizen aged 18 or above, possessing a valid national ID, having a registered mobile number with a recognized Mobile Network Operator in Kenya, and residing and conducting economic activities within the country.
Interest Rates and Repayment Terms
The loans are offered at an annual interest rate of 8%. Borrowers are expected to repay the loan within 14 days. In cases of default, 15 days after the due date, the interest rate increases to 9.5% per annum.
Persistent default beyond 30 days may lead to a loss of the existing credit score and account freezing.
Disbursement Process
To ensure accessibility, the Hustler Fund utilizes mobile money platforms for loan disbursement. Applicants can access the funds through a USSD code (*254#) available across major mobile operators, including Safaricom, Telkom, and Airtel Kenya.
Upon approval, the loan amount is directly credited to the borrower’s mobile money wallet.
Savings Component
A unique feature of the Hustler Fund is its emphasis on promoting a savings culture among borrowers. Each time a loan is disbursed, 5% of the amount is automatically deducted and allocated to the borrower’s savings.
This deduction is split into two parts: 30% goes into a short-term savings account, accessible after 365 days, and 70% is directed towards a pension scheme, encouraging long-term financial planning.
Bridge Loan Product
In a bid to reward prompt borrowers, the Hustler Fund has introduced the Bridge Loan product. This new offering allows beneficiaries with good credit history to access up to three times their current credit limit while maintaining the annual interest rate at 8%.
Additionally, the repayment period has been extended from 14 to 30 days, providing borrowers with greater flexibility.
The Hustler Fund Kenya continues to play a pivotal role in enhancing financial inclusion and supporting the growth of MSMEs by offering accessible and affordable credit solutions.
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