Finally, the hustlers fund has been launched, the ruling Kenya Kwanza administration has praised it to be a relief to millions of Kenyans who could not access credit after having been blacklisted by various credit rating agencies, is finally here.
This fund will offer every Kenyan loans ranging from a minimum of Ksh.500 to as high as Ksh.50,000 at 8 per cent pro-rated basis or a daily rate of 0.002 per cent.
The fund is well established on the basis of raising small scsale businesses through loans, and has ben called to be a great booster in raising businesses across the country.
But just like other credit plans, the Funds has terms of repayment which if the customer defaults, they will have to face penalties.
In case of default for the personal finance loan;
1. The interest rate will be readjourned to 9.5% per annum 15 days after the date of default.
2. After 30 days without paying the loan, the account of the customer will see a shrink in the loan status and later will be frozen
3. During this time the interest will continue to accrue pegged on the in-duplum rule and the appropriate recovery methods will be initiated.
Co-operative and Micro, Small, and Medium Enterprises Cabinet Secretary Simon Chelugui has said that the borrower may re-pay the loan in full or in part provided, that the full repayment is done within 14 days.
The fund is accessible through the USSD code *254# and mobile application platforms of any of the mobile network operators in Kenya.
To register an account on the platform, a customer is required to sign up for the fund through the USSD code or the mobile app.
To apply for a loan, a registered customer is required to:
• Dial USSD code *USSD code# or mobile application.
• Select the loan request option to view the limit, interest, and loan tenure.
• Enter the loan amount and press OK to continue
• Confirm loan details as displayed to continue
• Enter Mobile Money pin
• Receive SMS notifications on Loan allocation with relevant loan information.
