After dismissing allegations that the government will slap a ten million fine on all hustler fund defaulters, the cabinet secretary for the National Treasury and Planning has set the records straight on how defaulters will be penalized.
Through a gazette notice, the National Treasury has communicated that defaulters of the fund will be slapped with a 150 basis points fine on interest charged on the loans advanced. A 150 basis points fine means that all defaulters will pay a 1.5% added / extra interest.
As communicated earlier, the National Treasury announced that hustler will carry a standard and uniform 8% interest lending rate. The penalty of 1.5% will bring the interest charged on loans to 9.5% for defaulters.
On the other hand, those who timely service their loans will enjoy interest discounts as will be determined by the Hustler Fund Board of Management.
Additionally, treasury has removed the 50 billion ceiling on the hustler fund giving the National Assembly the mandate to increase or reduce the ceiling at will.
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