President William Ruto and the Kenya Kwanza outfit have finally launched their signature pledge dubbed the Hustler Fund.
The fund according to the Kenya Kwanza administration is meant to provide a relief to millions of Kenyans who could not access loans after having been blacklisted by various credit rating agencies.
Moreover, hustler fund will provide loans from a minimum of Ksh.500 to as high as Ksh.50,000 at 8 per cent pro-rated basis or a daily rate of 0.002 per cent.
Nonetheless, just like any other credit plan, hustler fund also has terms of repayment. If a customer defaults, there will be penalties effected to avoid recurrences.
Also Read: Here’s How to Access the Hustler Fund on Your Mobile Phone
Consequences for Hustler Fund Defaulters
- The interest rate will be adjusted to 9.5% per annum 15 days after the date of default
- A customer may end up losing their existing credit score and their account frozen in case of a persistent default spanning 30 days and over.
- Meanwhile, the interest will continue to increase pegged on the in-duplum rule and the appropriate recovery methods will be initiated.
In addition, the Co-operative and Micro, Small, and Medium Enterprises Cabinet Secretary Simon Chelugui noted that the borrower may re-pay the loan in full or in part provided that the full repayment is done within 14 days.
Nevertheless, the hustler fund is accessible through the USSD code *254# and mobile application platforms of any of the mobile network operators in Kenya.
