Hustler fund defaulters will be unable to make a second transaction until they clear all their pending payments on the platform.
This is according to President Ruto who spoke this while addressing Kwale County residents.
“Hustler fund defaulters on individual loans when they apply for the group funding, which is the second product of the Hustler Fund, will not be allowed,” he said.
Speaking in Ukunda, Ruto applauded those who were borrowing and repaying their loans, saying over Ksh400 million has been borrowed so far.
“You people have already borrowed Sh400 million… The good thing is that most of you are paying as they borrow more. As of now 68 percent are paying but there is another 30 percent and they know themselves,” Ruto said.
He further explained that the government has increased money for borrowing and there is an option to borrow as groups, where Sh20,000 to Sh1 million can be granted.
“Before we give you that Sh20,000 you will first need to pay the Sh500 which you borrowed the first time,” added Ruto.
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As of July 16, 2023, the government had disbursed Sh33,067,395,968 in personal loans.
Data released by Co-operatives and MSME Development Cabinet Secretary Simon Chelugui revealed that Sh22,514,523,325 had been repaid and Sh1,654,102,355 accounts for the savings already made.
The CS noted that at least 20,699,178 people are signed up with the fund, with a total of 45,822,172 transactions having been completed so far. Out of those, 7,241,481 transactions have been repeat customers.
On the second Hustler Fund product, Hustler Group Loan, CS Chelugui said Sh110,423,924 had been disbursed to various groups. Out of this, Sh2,260,660 has been repaid, while Sh5,521,196 is savings.
The CS said total groups created are 344,978 with at least 408,371 members pending approval. There are also 817,884 approved members.
Chelugui said the complete groups in the fund are 33,919 but only 28,144 can borrow from the fund.
As of June 1, 20,000 groups had been enrolled for the Hustler Group loans. The money is offered at an interest rate of seven percent per annum on a reducing balance of a 1.5 percent default rate.
The repayment period is six months from the disbursement date with borrowers having an option of repaying in instalments or lump sum.
It will also be available to individuals seeking to upscale their businesses where Sh10,000 to Sh200,000 is given under the same terms.
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