Speaking during the unveiling event, the chief hustler said that the fund will put an end to the exploitation of Kenyans by unscrupulous lenders who have been charging borrowers exorbitant interest rates.
“This is a momentous occasion that today we have a product that does not need an application, guarantee, or approval by a committee. It just needs a citizen, his phone or her phone, and a track record and they can borrow as much as they want so long as they keep to a track record,” President Ruto said.
Well, with the fund now live, many Kenyans want to know what it is and how to access it. So, let’s help break that down for you.
- The fund is classified into four products; Start-up loans, micro-loans, SME loans, and personal loans.
- The loan range is between KSh 500 and KSh 50,000
- The repayment period is two weeks (14 days)
- Interest on the loan is 8 percent. For example, If you borrow KSh 500, you will repay KSh 501.53 after 14 days.
- 5 percent of the borrowed amount will be deposited in your Hustler Fund saving account
- A loan borrowed erroneously cannot be reversed and must be repaid
- The Sim card must have been in use for at least 90 days
- Fund account deactivation when one defaults loan for over 30 days; There will be penalties imposed on the defaulters where 15 days after the date of default, the interest rate will be adjusted from 8 percent per annum to 9.5 percent per annum.
- To access the fund dial *254# on the mobile apps of Safaricom, Telkom, and Airtel.