Little known facts about Ksh.50 billion Hustler Fund and how to access it

President William Ruto is launching the Ksh.50 billion Hustler Fund, an implementation of his campaign pledge in the run up to the August 9 General Election.

The multi-billion programme targets individuals who are in informal financial services like Chamas, and small businesses people operating Small and Medium Enterprises (SMEs). You will need to dial *254# on any mobile phone to access the funds.

As the programmes rolls over into the public, few facts have stayed hidden with a number of questions beckoning.

Is CRB involved?

There will be no credit Reference Bureua agencies involved before one can access the funds.

Defaulted accounts will not affect an individual’s credit score with other lenders in the market.

How is accessed, and where is it?

a) Provides a digital platform with the best deals on financial products

b) Provides digital tools to help customers understand and manage their finances better

It will be accessed via USSD code via major mobile service provider; Safaricom, Airtel and Telkom.

What are loan products available on Hustler Fund?

a) Personal Finance.

b) Micro Loan

c) SMEs Loan

d) Start Up

What are the features of Personal Finance product?

a) Loan is between Ksh.500 and Ksh.50,000 depending on credit scoring determined by various parameters.

b) The repayment period is 14 days

c) The interest on loan is 8 percent a year calculated per day

d) The repayment period is 14 days. If a customer borrows Ksh.500 at 8 percent interest a year, in 14 days the interest will be Ksh.1.53. The customer will repay Ksh.501.53

How much will borrowers access?

This will be determined by consistent borrowing and repayment on schedule

What happens when a customer borrows?

a) Approved loan is sent to your mobile money account: 95 percent is deposited in your money wallet and 5 percent in your savings account scheme of the Hustler Fund

b) The 5 percent that goes to the savings scheme is split into two: 70 percent of this goes to long term savings (pension) and 30 percent to short-term savings

c) If a customer borrows Ksh.1,000 for example, 5 percent (Ksh.50) will go to the savings account

d) Of the Ksh.50, 70 percent (Ksh.35) will go to the borrower’s pension account and 30 percent (Ksh.15) to the savings account

What if a loan is borrowed erroneously?

If a loan is borrowed erroneously, it cannot be reversed and must be repaid.

How is the loan repaid?

Through the mobile money account and a borrower cannot transfer the loan to another mobile phone number.

Who qualifies?

a. Be a Kenya citizen 18 years and above

b. Valid ID card

c. Registered mobile phone number with Safaricom, Airtel and Telkom

d. Have a mobile money account: Mpesa, Airtel Money or T/Kash

e. The sim card must have been in use for more than 90 days

Can one customer use than one phone number to borrow?

No. The Hustler Fund identifier is the ID number. If you need to register another number for the Hustler Fund, you must opt out of the one registered

What happens if the phone is lost?

The savings are safe because the Hustler Fund account is protected by the PIN number. The account will be accessible upon replacement of SIM card

What happen if you default on Hustler Fund?

a) If the loan is not repaid in 14 days, the customer’s credit rating is affected

b) A customer is given 15 more days and if the loan is not repaid, the interest rises to 9.5 percent a year

c) After more than 30 days of default, the borrower loses all the credit scores accumulated and the Hustler Fund account is frozen

Monitor Your Business Transaction

Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

Related Articles

Back to top button