Hustler Fund, the ambitious credit access fund launched by President William Ruto, will require repayment within 14 days.
Start-up loans, microloans, SME loans, and personal loans are the four main products that the fund, which was inaugurated on Wednesday, will offer.
A customer borrowing KES 500 will have to pay back KES 501.53 after 14 days, or KES 1.53 in interest, with a 14-day repayment period and an annual interest rate of 8% calculated per day. If the loan is not repaid within 14 days, the customer’s credit score is impacted, and they are given an additional 15 days. The interest rate rises to 9.5% annually if the loan is still not repaid.
After more than 30 days of nonpayment, the Hustler Fund account is stopped and the borrower loses all acquired credit ratings. This default has no effect on the debtor’s credit rating with other lenders because there is no CRB listing. Once the debt has been fully repaid, the defaulting borrower may take out another loan. They may choose to pay it off in one lump sum or over time.
When a consumer requests a loan, the requested amount is transmitted to their mobile money account, where it is then split into two portions: 95% of the authorised loan is deposited in their money wallet, and 5% goes into their savings account. For the five percent that goes toward the savings plan, thirty percent is set aside for immediate needs and seventy percent is set aside for future needs (such as a retirement account).
How can you access it?
Kenyans can gain access to the Hustler Fund via a USSD code and mobile app platforms made available by mobile network providers like Safaricom, Airtel, and Telkom. The loan cannot be reversed if it is obtained inadvertently; it must be paid back. One’s mobile money account is used to pay back the loan.
The ID number acts as The Hustler Fund’s exclusive identity, thus a consumer cannot borrow money using more than one mobile number. If you need to register a another number for the Hustler Fund, you must opt-out of the current one.
Furthermore, because the Hustler Fund account is PIN-protected, savings remain safe even if a mobile device is lost. Access to the account will be reinstated after the SIM card has been changed.