On Thursday, President William Ruto unveiled the Hustler Group Loan, the second offering from the Financial Inclusion Fund otherwise known as the Hustler Fund.
The loan product is designed to facilitate access to funds for groups comprising between 5 to 10 individuals.
President Ruto said the Group Micro Enterprise Loan products will allow members to borrow between Sh20,000 and Sh1,000,000.
“I am glad that this launch of the group loan product is taking place against the backdrop of the phenomenal success of the Hustler Fund Personal Loan product. I expect this product will encounter even greater appetite from the market,” he said.
To date, the Hustler Fund has recorded an impressive tally of 42.5 million transactions, providing approximately 20.2 million Kenyans with access to around Sh30 Billion. Out of this total, Sh19.7 Billion has already been repaid.
Some 7 million Hustlers were repeat customers.
“Not a single shilling has been stolen through corruption and borrowers do not need to know anyone, bribe any official or go through complex bureaucratic procedures to access the Hustler Fund,” the President said.
How To Qualify And Apply For The Hustler Group Loan
The second phase of the Hustler Fund is called the Group Micro Enterprise Loan Products (GMELP).
This loan product is suitable for Kenyans who have a formally recognized group and are looking to finance their business as a group.
Key Features:
- Loan Amounts: Ranging from Sh20,000 to Sh1,000,000
- Interest Rate: 7% per annum on a reducing balance, with a default rate of 1.5%
- Tenor: Repayment period spans six (6) months from the date of disbursement. Borrowers have the flexibility to choose between installment-based or lump-sum repayments.
- Savings Scheme: Saving 5% of the approved amount respectively, channelled towards groups Members’ savings scheme
Qualifications:
- All group members must be Kenyan citizens aged 18 years and above, possessing a valid National Identification Card (ID).
- A group should consist of a minimum of 5 members.
- Each member should have an active SIM card issued by an approved Mobile Network Operator, which has been active for at least 90 days.
- The chama (group) should be verified by the relevant government institution.
- All group members should not have defaulted on personal loans.
To apply for the Hustler Fund, follow these steps:
- Dial the USSD code *254# on your mobile phone or access the mobile application provided by your mobile money service provider.
- From the menu options, select the loan request option to view the loan limit, interest rate, and loan tenure.
- Enter the desired loan amount and press OK to proceed.
- Review and confirm the loan details displayed on the screen to continue.
- Enter your Mobile Money PIN when prompted for authentication.
- Upon successful application, you will receive SMS notifications confirming the loan allocation and providing relevant loan information.
