Hustler fund is a digital financial inclusion initiative that is a brainchild of President William Ruto, one of his key promises to Kenyans during his campaigns.
After the assumption of power, the initiative was allocated Sh50 billion.
Launching the fund yesterday, the president said it aims to improve financial access to responsible finance for personal, micro, small, and medium-sized enterprises (MSMEs).
“The Hustler Fund will help small business owners, liberate ordinary Kenyans from shylocks and help establish a culture of saving, investment and social security,” the president said on his Twitter account.
How can one access Hustler Fund?
One can register and access the Hustler Fund on any mobile network by dialing *254# or via the mobile app.
For instance, when using the Safaricom line, once you dial the USSD code, you will be prompted to accept the terms and conditions, then requested to enter your M-pesa pin.
Once you complete, a confirmation text will be sent to the mobile number you have registered for the fund alerting you if you have successfully been registered.
The waiting period can range from 30 minutes to 2 hours, for one to know their borrowing limit.
Personal loans range from Sh 500 to Sh50,000.
For chamas, they can borrow from Sh 50,000 to Sh 250,000 and groups have an Sh10 million limit.
You will also know via text if you weren’t successful with your registration.
Who is eligible for the fund?
A Kenyan, who is 18 years old and above. Also, one who belongs to a registered chamas or Sacco.
The funds are offered with an 8% interest rate per annum. If you default on repaying your loan, you won’t be listed on the CRB and you can reborrow.
The loans can be repaid at once or in installments.
The loans need to be repaid within 14 days and the interest rate goes up to 9.5% per annum after 15 more days without repaying. The fund will freeze your account if you go 30 days without paying your loan.
Cabinet Secretary for Co-operatives and SMEs Development Simon Chelugui reiterated that hustlers will only need their phones, as there will be no intermediaries for the process.
“The money will be accessed via phone numbers and respective networks. We urge members of the public to disregard all forms of communications inviting them to register for funds on a website or via a phone number,” he said.
A call center has also been established and will respond to issues and questions of borrowers.
Through the Hustler Fund, every time one borrows an amount, 5% of the amount will go to a savings scheme, where the money adds interest. For every Sh2 saved, the government will add one shilling.