The cabinet secretary for the National Treasury and Planning has clarified how defaulters will be punished after denying claims that the government will fine all hustler fund defaulters ten million dollars.
The National Treasury has announced through a gazette notice that fund defaulters will be hit with a 150 basis point fine on interest charged on the loans advanced. With a 150 basis point punishment, all defaulters will be required to pay an additional 1.5% in interest.
The National Treasury stated that hustler will have a standard and uniform 8% interest lending rate, as previously communicated. The 1.5% penalty will raise the interest rate on loans for defaulters to 9.5%.However, those who repay their loans on time will receive interest discounts, as decided by the Hustler Fund Board of Management.
The National Assembly now has the authority to change the hustler fund ceiling at any time because the Treasury removed the 50 billion dollar cap on it.
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