As it is the case with other credit plans, the Hustler Fund has terms of repayment which if the customer defaults, they will have to face penalties.
In case of default for the personal finance loan; the interest rate will be adjusted to 9.5% per annum 15 days after the date of default.
The long-awaited Hustler Fund, which the Kenya Kwanza administration has touted as a relief to millions of Kenyans who could not access credit after having been blacklisted by various credit rating agencies, is finally here.
The fund will offer Kenyans loans from a minimum of Ksh.500 to as high as Ksh.50,000 at 8 per cent pro-rated basis or a daily rate of 0.002 per cent.
But as it is the case with other credit plans, the Hustler Fund has terms of repayment which if the customer defaults, they will have to face penalties.
In case of default for the personal finance loan;
The interest rate will be adjusted to 9.5% per annum 15 days after the date of default.
Thereafter, persistent default spanning 30 days and over will see a customer lose their existing credit score and their account frozen.
During this time the interest will continue to accrue pegged on the in-duplum rule and the appropriate recovery methods will be initiated.
Co-operative and Micro, Small, and Medium Enterprises Cabinet Secretary Simon Chelugui says that the borrower may re-pay the loan in full or in part provided, that the full repayment is done within 14 days.
The fund is accessible through the USSD code *254# and mobile application platforms of any of the mobile network operators in Kenya.
To register an account on the platform, a customer is required to sign up for the fund through the USSD code or the mobile app.
To apply for a loan, a registered customer is required to:
• 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.