Facts you didn’t know about Hustler Fund

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President Ruto has launched the Hustler Fund which is meant to empower Kenyans who want to operate small businesses. Below are facts you didn’t know about the fund:

1. How does the Hustler Fund work?

a) Provides a digital platform with the best deals on financial products

b) Provides digital tools to help customers understand and manage their finances better

2. How will the Hustler Fund be accessed? Through a USSD code and mobile app platforms of the mobile network operators ie Safaricom, Airtel and Telkom

3. What products are available under the Hustler Fund ?

a) Personal Finance. This product will be launched today

b) Micro Loan

c) SMEs Loan

d) Start Up

4. What are the features of Personal Finance product?

a) Loan is between Sh500 and Sh50,000 depending on credit scoring determined by various parameters

b) The repayment period is 14 days

c) The interest on loan is 8 per cent a year calculated per day

d) The repayment period is 14 days. If a customer borrows Sh500 at 8 per cent interest a year, in 14 days the interest will be Sh1.53. The customer will repay Sh501.53

5. How much will borrowers access?

This will be determined by consistent borrowing and repayment on schedule

6. What happens when a customer borrows?

a) Approved loan is sent to your mobile money account: 95 per cent is deposited in your money wallet and 5 per cent in your savings account scheme of the Hustler Fund

b) The 5 per cent that goes to the savings scheme is split into two: 70 per cent of this goes to long term savings (pension) and 30 per cent  to short-term savings

c) If a customer borrows Sh1,000 for example, 5 per cent (Sh50) will go to the savings account

d) Of the Sh50, 70 per cent (Sh35) will go to the borrower’s pension account and 30 per cent (Sh15) to the savings account

7. What if a loan is borrowed erroneously? It cannot be reversed and must be repaid

8. How is the loan repaid?

Through the mobile money account.

9. Can a customer transfer the loan to another mobile phone number? No

10. Eligibility

a. Be a Kenya citizen 18 years and above

b. Valid ID card

c. Registered mobile phone number with Safaricom, Airtel and Telkom

d. Have a mobile money account: Mpesa, Airtel Money or T/Kash

e. The sim card must have been in use for more than 90 days

11. Can one customer use than one phone number to borrow? No. The Hustler Fund identifier is the ID number. If you need to register another number for the Hustler Fund, you must opt out of the one registered

12. What happens if the phone is lost?

The  savings are safe because the Hustler Fund account is protected by the PIN number. The account will be accessible upon replacement of SIM card

14. Default?

a) If the loan is not repaid in 14 days, the customer’s credit rating is affected

b) A customer is given 15 more days and if the loan is not repaid, the interest rises to 9.5 per cent a year

c) After more than 30 days of default, the borrower loses all the credit scores accumulated and the Hustler Fund account is frozen

NB: There is no CRB and this default does not affect the person’s credit rating with other creditors. The defaulter can repay the loan at once or in instalments and begin borrowing again after full repayment