President Ruto has fulfilled one of his promises he made during campaigns. Hustlers fund is now available for Kenyans. One can now borrow money from the Hustlers Fund using the short code *254# on Safaricom, Airtel and Telkom networks after its official unveiling by President William Ruto on Wednesday.
Once you dial the short code, you will be required to insert your ID and pin number before selecting the loan that best suits you.
According to guidelines Personal loans being offered on the Fund are between Sh500 and Sh50,000, with the repayment period being 14 days.
The interest rate on the loan is eight per cent annually.
“The Hustlers Fund will give every hustler a second chance. Unlike other loan schemes, the Hustlers Fund will not require [lengthy] application [processes], just your mobile phone,” said President Ruto during the launch at the Greenpark Terminus in Nairobi.
He added: “The interest rate for the Hustler Fund will be 500 times cheaper than the average lender in the market.”
The Fund is dedicated to the capitalisation of micro, small and medium-sized enterprises through chamas, saccos and cooperatives.
“Those with micro-enterprises will get loans between Sh50,000 and Sh500,000,” said President Ruto.
He, however, noted that the launch for micro-loans between Sh100,000 and Sh50 million will be done in February 2023.
The president also spoke about the savings scheme available on the Hustlers Fund.
“If you save Sh500 in a month, which translates to Sh6,000 a year, the government will add you Sh3,000,” he said.
Hustler Fund borrowers who will default on the loans will see their interest rates increased from 8 per cent to 9.5 per cent.
If a customer will not have paid the loans within the required time, they will be added an extra 15 days, before the increment of the interest rate.
The borrowers who default will also have their Hustler Fund account frozen.