How to borrow Hustler Fund and How to repay hustler fund in Kenya
Hustler Fund Loan is a Ksh 50 billion kitty launched by the Kenyan government in November 2022 that allows citizens to borrow money using their mobile phones.
The fund will provide financial assistance to Kenyan youths and small business enterprises in order to promote entrepreneurship and job creation.
It is supported by government funds, including allocations from the national budget, and is overseen by a board of trustees.
Who is eligible for the Hustler Fund Loan?
Individuals and small business owners who meet the following criteria are eligible for the Hustler Fund Loan.
> Be a Kenyan citizen over the age of 18 and possess a valid National ID. Have a registered mobile number with a reputable mobile operator, such as Safaricom, Telkom, or Airtel. The registered sim card (mobile number) must have been active for at least 90 days. Have a registered mobile money wallet with a reputable mobile operator, such as Safaricom's Mpesa, Telkom's Tkash, or Airtel Money (Airtel). Provide accurate residential information.
How much money can you get from the Hustler Fund?
The loan amount disbursed is determined by your credit score and other factors, and it is divided as follows:
- 95% of the money is transferred to your mobile wallet (Mpesa, Airtel Money, or Tkash), and 5% is transferred to your savings account.
- The 5% is further reduced as follows:
- 30% is transferred to your short-term savings account (accessible after six months)
- 70% will be transferred to your long-term savings wallet (accessible after "retirement").
How to Join or Register with the Hustler Fund in Kenya
Here are the steps to creating a new Hustler Fund Account. The procedure takes less than two minutes to complete and can be done from any mobile phone.
- *254# Dial the Hustler Fund USSD Code
- To register, select option 1 and click the Send button. To accept the terms and conditions, select option 1.
- Select the Send option.
- Enter your pin number (Mpesa, Tkash, or Airtel Money)
- You will then receive an SMS notification regarding the status of your registration. If your registration was successful, Hustler Fund will contact you with your loan limit.
- 30% transferred to your short-term savings account (accessible after six months)
- 70% transferred to your long-term savings wallet (accessible after "retirement").
How to Pay Back a Hustler Fund Loan
If you're wondering how to repay the Hustler Fund Loan, here's a step-by-step guide:
- From your mobile phone, dial *254#.
- Choose the Repay Loan option.
- Enter the amount to be paid and click Send to proceed.
- Enter your PIN for mobile money.
- To confirm your loan details, select option 1.
- To proceed, click Send.
How Can I Opt Out of the Hustler Fund?
At the time of writing, there was no way to opt out of the Hustler Fund. In comparison to other services such as Fuliza, Kenyans cannot currently opt out of Hustler Fund. You can, however, choose not to create an account.
Hustler Fund Alternates
Apart Hustler fund, here are other useful apps to give you emergency loans.
Other loan apps and digital lending platforms in Kenya exist in addition to the hustler fund. These platforms provide loans to Kenyans with varying interest rates, terms, and repayment periods. Fuliza by Safaricom, Mshwari, KCB Mpesa, Zenka, TALA, and Branch are among them.
Hustler Fund Frequently Asked Questions
The following are some frequently asked questions about the Hustlers Fund in Kenya:
How do I apply for a Hustler Fund?
Dial *254# from any mobile network, such as Airtel, Telkom Kenya, or Safaricom, to access Hustler Fund.
How much money can you get from the Hustlers Fund Kenya?
When you apply for a loan, you will be offered between KSh 500 and KSh 50,000, depending on your credit score.
In Kenya, how do you opt out of the Hustlers Fund?
There is currently no way to opt out of the Hustlers Fund.
How do I withdraw funds from Airtel's Hustlers Fund?
To withdraw funds from the Hustlers Fund in Airtel, take your National ID to an Airtel Money agent.
What happens if you do not contribute to the Hustlers Fund?
If the loan is not paid within 14 days (from the date of disbursement), it will accrue a 9.5% interest rate beginning on the 15th day.
How do I find out what my Hustler Fund limit is?
Dial *254# USSD and follow the prompts to check your hustler fund limit.
What are the Hustlers Fund's terms and conditions in Kenya?
The Hustler Fund's terms and conditions in Kenya address key issues such as eligibility, registration, loan application, processing, disbursement, and repayment. For more information, visit the fund's website.
What is the Kenyan Hustlers Fund repayment period?
The Hustlers Fund loans must be repaid within 14 days at an annual interest rate of 8%. For the days when the facility is in default, the rate rises to 9.5 percent per year.
To summarize
Now that you know how to apply for the Hustler Fund Loan, let's take a look at how much you'll receive in your MPESA, Tkash, or Airtel Money account.
If your loan is approved, you will receive 95% of the loan amount in MPESA or other mobile wallets. 5% of the loan is transferred to your savings account. Furthermore, the 5% is divided between short-term savings (30%) and long-term pension (70%).
If you qualify for Ksh 500, for example, you will receive 95% (Ksh 475) on your mobile. The remaining 5% (Ksh 25) will be deposited into your savings account in two installments: Ksh 7.5 for short-term savings and Ksh 17.5 for long-term savings.