The Hustler Fund, AKA The Financial Inclusion fund, is a government fund that lends Kenyan Citizens Money through their mobile money accounts. The fund is a flagship of President William Ruto. According to information on its website, Hustler Fund was initially funded by the government in an investment of Kshs 50 billion as startup capital.
The aim of the Hustler Fund is to make affordable credit available to Kenyans who cannot access instant credit facilities from traditional lending institutions. This fund will lend loans at an interest rate capped at 8% per annum computed on a pro-rated basis. Loans on the Hustler Fund don’t have a processing fee.
How To Register on Hustler Fund
To register and borrow money from the Financial Inclusion Fund:
- Dial *254# on your mobile phone and call.
- Accept the Terms and Conditions to join the Fund
- Enter your Mobile Money Pin
- Upon fulfillment of steps 1-3, an SMS will be sent to notify them of their successful registration and the limit assignment.
- In the event of a failed registration, the borrower will be notified via SMS
How Much Can You Borrow From Hustler Fund?
When you register for a Hustler Fund account, you can borrow any amount between Kshs. 500 and Kshs. 50,000.
- The approved loan will be disbursed to your Mobile Money account
- Out of the total approved loan amount, on disbursement 95% shall be deposited to your Mobile Money wallet, and the remaining 5% shall be deposited to your savings account scheme of the fund
- 5% of your loan will go into a savings scheme
- The savings scheme will split savings into 70% long-term and 30% short-term savings i.e., 70% of the 5% will go into long-term (Pension) and 30% of the 5% will go into short term
- For Example, if you borrow KShs. 1,000:
- KSh 50 (5% *1,000) will go into their savings account as below
- KSh 35 (70% *50) – Will go to your Pension account
- KSh 15 (30% * 50) – Will go to your short-term savings account
Besides personal loans, the Hustler Fund will also be available to citizens in other products:
- Micro Loan
- SMEs Loan
- Start-Up Loan
How to Increase Your Hustler Fund Limit
The loan limits for the Hustler Fund will be a minimum of KSh. 500 up to a maximum that will be determined by the borrower’s credit score and capped at KSh. 50,000.00.
The increase in limit will be dependent on the individual customer’s performance on consistent loan borrowing and repayment on time
The limit shall be reviewed and adjusted based on the borrowing and repayment history of previous Hustler Fund loans taken.
What Happens if You Don’t Pay Back a Hustler Fund Loan?
- 15 days after the date of default the interest rate will be adjusted to 9.5% per annum.
- Thereafter persistent default spanning 30 days and over will see you lose your existing credit score and your account frozen.
- Interest continues to accrue pegged on the in-duplum rule and recovery methods will be initiated.
Repaying Your Hustler Fund Loan
You can re-pay the loan as a lump sum (in whole) or in part provided that the full repayment is done within 14 days. If you fail to pay back a hustler fund loan within 14 days, your credit score will be negatively affected. You can only get one loan at a time and qualify for another loan if you pay your current loan in full.
For more information about Hustler Fund, check out the Hustler Fund FAQs page.