The Hustler Fund Loan is a Government of Kenya financial inclusion program introduced to help individuals and SMEs access instant loans while maintaining a relatively low interest rate. In this article, we will discuss the available types of Hustler Funds and the application requirements. We will also cover the application procedures and the interest rates for the Hustler Funds loan.
Types of Hustler Fund Loan
The Hustler Fund Loan comes in three (3) categories which ensures persons at all levels benefit from this initiative. These are;
- Personal Loan Products (PLP)
- Group Micro Enterprise Loan Products (Hustler Fund Ya Vikundi)
- Individual Micro Enterprise Loan
Hustler Fund Personal Loan Products
The personal loan product of the Hustler Fund aims to provide emergency financial relief to persons in the informal sector. This is a one time loan offer that can be accessed by eligible and qualified persons on all networks.
Requirements for Hustler Fund Personal Loan
To be eligible to apply for the Personal loan, you must meet the following requirements;
- Must be a Kenyan citizen of 18 years of age and above
- Must have a valid national Identification Card (ID)
- Must have a registered mobile number from a recognized Mobile Network Operator in Kenya
- Reside and conduct economic activity in Kenya.
- Must Provide Sub County of residence during the onboarding process.
Hustler Fund Personal Loan Application Process
To apply for the Hustler funds, you first have to register and then proceed to apply for your loan. Follow these steps to begin your application;
- Dial the USSD code *254# on Safaricom, Orange Telkom, or Airtel Kenya
- Read and Accept the terms and conditions
- Enter your mobile money PIN. (Enter your m-pesa PIN if you use Safaricom)
- A confirmation text will be sent to your phone to confirm your registration within 30 minutes to 1hour
- Now proceed to apply for your Hustler funds personal loan from your wallet
Hustler Fund Personal Loan Interest Rate
Persons who apply for the Hustler fund will be required to pay the following interest on all loan applications;
- Hustler Fund Personal Loan has an eligible amount of KES 500 to KES 50,000
- The interest rate is 8%. (NB: an additional 1.5% rate will be applied on all late payments)
- The duration of the Personal Loan is 14 days and can be extended to 30 days
- A 5% is deducted for savings every time someone borrows
Group Micro Enterprise Loan Products
Group Micro Enterprise Loan product was designed for Kenyans who have a formally recognized group and are looking to finance their business as a group.
Requirements for Hustler Fund Group Micro Enterprise Loan
- All group members should be Kenyan citizens of 18 years above with a valid National Identification Card (ID).
- The Group must comprise of at least five (5) members.
- Each member must have an active SIM card that is not less than 90 days old on any Mobile Network.
- Engage in economic activity in the Priority Sectors
- The Chama verified by Government Institutions (ie. MSEA, Social Services and BRS)
- All group members should not have defaulted on the Personal
Features of Group Micro Enterprise Loan
The Hustler Fund Group Micro Enterprise Loan comes with the following features;
- This loan package has amounts ranging between Kes 20,000 to Kes 1,000,000
- An interest rate of 7% per annum on reducing balance and 1.5% default rate
A repayment in six (6) months from the disbursement date. (NB: Borrowers can opt to repay in installments or lump sum)
- Saving 5% of the approved amount respectively, channeled towards groups Members savings scheme
- The Group scoring will be appraised through a credit scoring algorithm based on collective individual members’ scores, including but not limited to, their savings and repayment history.
Hustler Fund Individual Micro Enterprise Loan
The Individual Micro Enterprise Loan was designed to provide Kenyan businesses registered with BRS enough financial support to grow their businesses.
Requirements for Individual Micro Enterprise Loan
Applicants of the individual micro enterprise loan must meet the following application requirements;
- Be a Kenyan citizen of 18 years of age and above with a H valid Kenyan National Identification Card (ID
- Have an active SIM card for at least 90 days with any MN
- Operate a formally registered business under the Business Registration Service
- Possess a KRA Pin for the business.
- Must not have defaulted on Personal Loan Product & Group/Chama Product.
For Credit Scoring, Consent sharing of business Financial Information (MNOs & Financial Institutions)
Features of Individual Micro Enterprise Loan
The Individual Micro Enterprise Loan comes with the following features;
- The Individual Micro Enterprise Loan amount ranges from Kes 10,000 to Kes 200,000
- An Interest rate of 7% per annum on reducing balance and 1.5% default rate
- Tenor: Repayment in six (6) months from the disbursement date. Borrowers can opt to repay in installments or lump sum.
- A 5% of the approved amount respectively, channeled towards the borrower’s savings scheme