Hustler Fund Loan [2023]- How To Apply, Repay, Interest rate, Contacts.

hustler fund 2022

The financial inclusion fund popularly known as the ‘Hustler Fund’ is a 50 billion annual kitty provided by the Kenyan government targeted towards supporting micro, small and medium enterprises to realize business growth through affordable credit.

The Hustler Fund is composed of funds set aside by the national assembly specifically for the fund’s purpose, interests and penalties earned from disbursed loans, investment income generated from the fund, gifts/donations/grants received from external sources in addition to any other source approved by the Cabinet Secretary.

Similar to other Kenyan digital loans, the Hustler Fund does not require any collateral and can be applied for, approved and funds dispensed digitally to eligible applicant(s)

Note: The hustler fund is currently in its pilot phase whereby its phase 1 launch will be done on 30th November 2022. Any information gathered herein will be duly updated as the fund nears its official launch in December 2022

Hustler Fund Loan Registration Requirements

Currently, there are 3 qualified categories of applicant(s) for the hustler fund which include;

i) Individual
ii) Registered groups (chamas, self-help groups etc)
iii) Financial intermediaries (banks, microfinance institutions, saccos etc)

In each of the above, there are prescribed conditions that have to be met before the loan can be approved and subsequently disbursed.

For individuals, an applicant is required to be

a) Kenyan national
b) Aged 18 years and above
c) Possess a valid national identity card

For registered groups;
a) Applicants should be part of a fully registered community group composed of either youth/men/women/mixed/older person(s) or persons with disabilities.
b) All members should be aged 18 years and above
c) All members should have a common purpose
d) Group should be composed of at least 10 persons or 5 persons (special interest community groups)
e) Group must have constitution indicating;
– Name, purpose and address of the group
– Objectives, values & group activities statement
– Membership criteria of the group
– Office bearers & their tenure
– Group’s finances & utilization
– Group’s assets management
– Group’s record management
– Minutes of meetings
– Elections, dispute resolution, constitution amendments, indemnity & dissolution criteria
– Signatures of all group members

For financial intermediaries;

a) Loan application should be for on-lending to a business person or micro, small and medium enterprises
b) Should provide matching funds of at least the loan application amount
c) Should pay interest on the loan amount

Hustler Fund Loan Amount Limits

The hustler fund loan amount limits differ depending on the product category i.e.

i) Individual borrowing (Kes500 – Kes500,000) whereby 5% of the amount borrowed is channeled towards savings that can be accessed at will.
ii) Group borrowing (Kes50,000 – Kes250,000)
iii) SMEs and Cooperative borrowing

The assigned loan limits will depend on a borrower’s credit score whereby a credit score refers to the likelihood of a borrower(s) not defaulting on a loan whereby higher credit scores translate to higher loan limits while lower credit scores mean lower limits.

To improve your credit score, all that is required is to ensure full and timely repayment of loans in addition to providing accurate info to lenders.

Hustler Fund Interest Rate & Repayment Period

The hustler fund attracts an annual interest rate of 8% on all disbursed loans on a pro-rata basis which basically translates to 0.6% per month.

How To Apply For Hustler Fund

Currently not officially launched, the application procedure is not yet announced. However, it is rumored to be done via smartphone like other digital loans in Kenya.



Categories: Loan Apps - Kenya, Loan Articles

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