The Hustler fund group loan targets groups registered by the Micro and Small Enterprises Authority (MSEA) such as chamas, associations, and Saccos, and aim to bridge the gap between these entrepreneurs and access to capital and help fuel economic growth through collective-driven competitive market enterprise.
Hustler Fund Group Loan Interest
The Hustler Fund Group loan product allows groups to apply for loans ranging from Kes 20,000 to Kes 1 million. The interest rate is 7% per annum on reducing balance and a 1.5% default rate. The repayment period is six months from the disbursement date.
Borrowers can opt to repay in installments or lump sums. The loan also requires a saving of 5% of the approved amount, which is channeled toward the group members’ savings scheme.
To be eligible for the loan, a group must have a minimum of ten members and must possess an active registration certificate from the Micro and Small Enterprises Authority (MSEA).
Group Loan USSD (*254#)
The Group loan product is easy and convenient to access. You only dial *254# across any mobile network or use a mobile app. You must also be a Kenyan citizen, have a mobile money wallet, and be above 18 years old to qualify.
You do not need any collateral or guarantors. Your group’s credit score will be appraised through a credit scoring algorithm based on the collective individual members’ score, including but not limited to, their savings and repayment history on the Personal Loan Product.
The product is suitable for groups that engage in economic activities in the agriculture, trade, manufacturing, services, and technology sectors. The loan can help groups to expand their businesses, increase their incomes, create jobs, and improve their livelihoods.
The Hustler Fund Group loan product was launched by President William Ruto on June 1, 2023, during the Madaraka Day celebrations in Embu County. It is the second product of the Hustler Fund
Hustler Fund Group Loan Features
- Amounts: Between Kes 20,000 to Kes 1,000,000
- Interest rate: 7% per annum on reducing balance and 1.5% default rate
- Tenor: Repayment in six (6) months from the disbursement date. Borrowers can opt to repay in installments or lump sum.
- Saving 5% of the approved amount respectively, channeled towards groups Members’ savings scheme
The Group scoring will be appraised through a credit scoring algorithm based on collective individual members’ scores, including but not limited to, their savings and repayment history
Hustler Fund Group Loan Requirement
For a Kenyan group to qualify for this loan product, they must meet the following criteria:
- All group members should be Kenyan citizens of 18 years and above with a valid National Identification Card (ID).
- A group to comprise at least 5 members.
- Each member should have had an active SIM card for the past 90 days on any Mobile Network Opera
- Engage in economic activity in the Priority Sectors (as listed under core objectives)
- The Chama verified by Government Institutions ie MSEA, Social Services, and BRS
- All group members should not have defaulted on the Personal
This loan product is suitable for Kenyans who have a formally recognized group and are looking to finance their business as a group.