A total of Sh408 million have been disbursed barely 24 hours after the launch of the Hustler fund.
President William Ruto launched the much-awaited fund on Wednesday fulfilling his pre-election pledge to set aside Sh50 billion for the ‘hustlers.’ The fund is specifically designed to support small-scale traders in the country. The fund will see minimum borrowers get Sh500 while the largest amount advanced will be Sh50,000 at an interest rate of eight per cent.
In a statement, Cooperatives and MSMEs Cabinet Secretary Simon Chelugui further disclosed that 1.14 million Kenyans have so far been registered in the kitty.
Eligibility
To be eligible, one must be at least 18 years old, have a national identity card and a registered SIM card and mobile money account with Safaricom, Airtel or Telkom.
Further, their lines must have been in use for at least 90 days. This means that if you buy a new SIM card today and register it solely for the purpose of getting the loan, you will not be eligible.
To borrow, an individual dials *254# from any of the three mobile phone network providers.
Repayment
The repayment period for loans for small businesses through the Hustlers Fund will be capped at 14 days in a plan that looks set to open a window for small businesses to access cheaper credit.
With a 14-day repayment period and an annual interest rate of eight per cent calculated per day, a customer who borrows Sh500 will pay back Sh501.53 after 14 days, representing Sh1.53 in interest.
At eight per cent per month, the interest is lower than the latest average bank borrowing cost of 12.38 per cent and annualized M-Shwari charges of 108 per cent.
By BNN