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Hustler Fund Will Give A Second Chance For Loan Defaulters - President William Ruto

Nairobi, November 30— President William Ruto says the Hustlers Fund, announced Wednesday, will give loan defaulters a second opportunity.

President Ruto said Tuesday that the fund will discourage unscrupulous lenders from exploiting Kenyans with excessive interest rates.

The Head of State noted that 8 million Kenyans could not get credit due to their past, but no one will be denied credit in the future.

“This is a huge event that today we have a product that does not need an application, guarantee, or committee approval. It only needs a citizen, their phone, and a track record, and they can borrow as much as they want so long as they maintain a track record,” Ruto said.

The Head of State said the fund will replace the collateral mechanism behind title deeds, log books, and securities.

Kenyans can access Hustlers Fund by dialling *254# on their phones when the Head of State introduces it on Thursday.

The fund is open to Kenyan citizens over 18 with a valid Identification Card and a Safaricom, Airtel, or Telkom mobile phone.

Mpesa, Airtel Money, or Tkash mobile money accounts and a 90-day-old sim card are required.

One borrower can only use one Hustlers Fund ID number.

PIN-protected Hustler Fund accounts keep funds safe even if a phone is lost. SIM card swap restores account access.

On Wednesday, the fund launched a start-up, micro, SME, and personal loans.

A customer that borrows KES500 will repay KES 501.53 after 14 days, paying KES 1.53 in interest.

A consumer's accepted loan is sent to their mobile money account, deposited 95% in their wallet, and 5% in their savings account.

Emergency savings receive 30%, long-term savings 70% of the five per cent (pension).

If the loan is not repaid within 14 days, the customer's credit report will be tarnished. The APR will rise to 9.50% if the loan is not paid on time.

After more than 30 days of delinquency, the Hustler Fund account is frozen, and the borrower loses all credit scores.

The loan default will not influence the person's credit rating with other creditors because there will be no Credit Reference Bureau listing.

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Hustler Hustlers Fund Kenyans Ruto William Ruto

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