In this article, we explain how to apply for the Hustler Group Loan. President William Ruto launched the second offering of the Hustler Fund during the Madaraka Day celebrations in Embu. According to him, it will enable organizations of at least 10 members to receive funding.
According to President Ruto, the organizations will need to have at least 10 members in order to be eligible to borrow between Sh20,000 and Sh1,000,000. Loans between Sh500 and Sh50,000 have been disbursed under the Hustler Fund’s personal loan program.
“The second product of the Hustler Fund will usher our unique collective-driven competitive market enterprise to the online domain. To promote inclusion, the Hustler Fund is going to deploy groups such as chamas and saccos [to help] overcome exclusion and barriers to participation in credit, savings, social security, health insurance and other socioeconomic amenities,” President Ruto said.
“This is how we will use policy and technological innovation to mainstream our way of life. We are committed to leveraging fintech in ensuring that no one is left behind in the financial and entrepreneurial inclusivity revolution.”
Additionally, Dr. Ruto announced that Kenyans have so far borrowed Sh42.5 million from the Hustlrer Fund.
According to him, out of this total, 20.2 million Kenyans borrowed about Sh30 billion and paid back Sh19.7 billion, with 7 million of them being repeat customers.
“Borrowers do not need to know anyone, pay any official, or go through difficult bureaucratic processes,” said Ruto.
“Not a single shilling has been taken through corruption,” he added.
“People can access money anywhere they are with just a device, a little airtime, and a few minutes.”
So far, Kenya Kwanza has launched two of the four products envisioned to comprise the Hustler Fund – the Personal Loan launched on November 30, 2022 and the Group Loan launched on June 1, 2023.
Features of the Hustler Group Loan
- Offers with values ranging from Ksh20,000 to Ksh1,000,000
2. Interest rate: 7% per year on the declining balance, and a 1.5% default rate
3. Repayment is due six (6) months after the date of the disbursement. Borrowers have the option of making partial or full repayments.
4. Savings: A savings program for group members is funded with 5% of the permitted amount.
5. The collective individual member scores of the Group, including but not limited to their savings and repayment history, will be used to calculate the Group scoring.
Qualifications for the Hustler Group Loan
- Each group member must be a Kenyan citizen who is at least 18 years old and in possession of a current National Identity Card (ID).
2. There should be at least 5 people in a group.
3. Each member must have had a valid sim card from a Mobile Network Operator for the previous 90 days.
4. The chama needs to be confirmed by the appropriate government institution.
5. Everyone in the group shouldn’t have fallen behind on the Hustler Personal Loan.
How to apply for the Hustler Group Loan
If you don’t have a smartphone, you can apply for the Hustler Group Loan through the USSD code *254# which will lead you to a menu where you can make the relevant selections.
Alternatively, you can apply for the Hustler Group Loan through mobile applications provided by mobile money service providers in the country.
Select the loan request option to view the limit, interest, and loan tenure.
Enter the loan amount and press OK to continue.
Confirm loan details as displayed to continue.
Enter Mobile Money pin.
Receive SMS notifications on Loan allocation with relevant loan information.