As known, the Hustler Fund is a loan product by the Government of Kenya aimed at expanding access to safe and affordable financial products and services for all Kenyans.
Significantly, it was created to address disparities in the availability and cost of credit in the informal sector by opening up simple, safe, and affordable loan opportunities for economically disadvantaged individuals who may have no or limited credit history.
“The Government established the Financial Inclusion Fund, popularly referred to as Hustler Fund, to help cushion and mitigate financial shocks for the informal sector, which accounts for more than 80% of the workforce and contributes over 33% of the Gross Domestic Product (GDP),” states the Advisory Board managing the fund.
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“The Hustler Fund is important because it provides access to responsible finance for personal, micro, small, and medium-sized enterprises (MSMEs) by innovating, developing, and deploying bottom-of-the-pyramid financial services and products that are affordable, accessible, and appropriate for the unserved and underserved persons. These include credit, savings, insurance, pension, and investment products.”
Hustler Fund loan products
The Government has several affordable loan programs that Hustler Fund borrowers may qualify for. Whether you need cash to pay for essential expenses, cover unanticipated costs such as emergency medical treatment, prepare for funerals, spend on holidays, or start a business, one of them may be just right for your particular situation.
There are four loan products available under the Hustler Fund:
1. Personal Finance
2. Micro Loans
3. SME Loans
4. Start-Up Loans
Hustler Fund personal loans range from Ksh500 to Ksh50,000, while Biashara and Group Loans offer amounts from Ksh20,000 to a maximum of Ksh1 million. Loan eligibility is subject to your credit score and other credit qualifiers.
Getting a loan from the Hustler Fund is easy because the process is purely digital, with no documentation or collateral required. Simply dial *254# to apply if you are over 18 years old.
Hustler Fund savings products
The Advisory Board of the Financial Inclusion Fund of Hustler Fund understands that to be inclusive, financial products and services must not only be accessible but also designed to facilitate all consumers’ ability to improve their financial resilience and well-being, better withstand financial emergencies, and make investments.
For that, Hustler Fund’s products underscore the importance of financial planning and starting to save early. It has savings accounts, where individuals and households can save money and store income that is in excess of typical consumption levels to enable them to cover unexpected or occasional expenses when they arise.
To support this, the fund automatically deducts 5% of your loan before disbursement and allocates it to savings as follows:
– 70% goes into long-term savings (pension)
– 30% goes into short-term savings
One advantage of Hustler Fund savings is that the Government of Kenya matches pension contributions for non-defaulting customers in a 2:1 ratio. For every Ksh2 saved, the Government contributes Ksh1, up to a maximum of Ksh3,000 per year.
Additionally, customers who fully or repay 30% of their loans can access their short-term savings after 365 days from the loan disbursement date.
The Hustler Fund savings offer a 12% annualized interest rate, calculated based on Treasury bill rates and paid out on December 31st. This rate applies to all savings, regardless of the amount saved.
By combining accessible loans with a built-in savings component, the Hustler Fund provides Kenyans with a robust tool for managing financial emergencies and planning for the long term.
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