President William Ruto, on Wednesday, November 30, launched loans from the Financial Inclusion Fund, often known as the Hustler Fund, to benefit Kenyans running various businesses.
The fund is touted to provide relief to almost eight million Kenyans by providing a digital platform where people find the best deals on financial products and developing a series of digital tools and resources to help people understand and manage their finances better.
Beneficiaries will access four loan types from Hustler Fund by dialling *254#.
The types of loans include personal finance, microloans, loans for Small and Medium Enterprises (SMEs) and credit for Startups.
“When you visit the Hustler fund website, you will be able to see different available products. Each product has a description of what it is for and whom it is designed to help,” the Ministry of Cooperatives and MSME Development led by Cabinet Secretary Simon Chelugui stated.
Personal Loans
Personal loan limits will be capped at a minimum of Ksh500 to a maximum of Ksh50,000 which will be determined by the borrower’s credit score.
Credit limits for personal loans will be increased depending on a person’s performance, that is, their consistency in borrowing and repaying without defaulting.
“The limit shall be reviewed and adjusted based on the borrowing and repayment history of previous Hustler Fund loans taken,” the government stated.
Approved loans, which will be disbursed to a mobile money account, will attract an interest rate of 8 per cent per year, computed on a pro-rated basis.
Groups
For small groups, Ruto noted that the loan limit for set between Ksh50,000 to Ksh500,000.
He indicated the government would increase the amount to Ksh10 million after a successful trial.
Unlike other credits, the government will not apply the processing fee before approving the loans.
However, the beneficiaries will receive 95 per cent of the loan. The remaining 5 per cent will go into a personal savings scheme.
“The savings scheme will split savings into 70 per cent long-term and 30 per cent short-term savings,” the government explained.
Requirements
Successful applicants must be Kenyan citizens above 18 years. They must also have a valid national Identification Card (ID) and registered mobile number from a recognised mobile network operator in the country, among others.
How to Repay
Loans repayment will be made from the mobile money account. Through this process, one can repay the debt amount.
ByÂ
Source-https://www.kenyans.co.ke/
Four Types Of Hustler Fund Loans And Repayment Plans
