President William Ruto launched the second phase of the Hustler Fund on Thursday, June 1, 2023.
Speaking during the Madaraka Day celebrations in Moi Stadium, Embu President Ruto said the Hustler Fund was a success, disbursing close to Sh30 billion since its launch in December 2022.
"The total number of digital transactions now at the Hustler Fund stands at 42.5M through which 20.2 million Kenyans have accessed nearly Sh30 billion and repaid close to Sh20 billion with 7 million Kenyans being constant & repeat customers,” he told Kenyans.
President Ruto said that the next phase of the Hustler Fund that targets groups, cooperatives and chamas with a borrowing ceiling of Sh1 million.
"Today I shall be launching the second product of the Hustler Fund which is aimed at facilitating people's access to funding through groups. I am sure this will be very good news for my good friend Shiko in Ruaraka Market,” he spoke.
How to qualify for second phase of Hustler Fund
The second phase of the Hustler Fund is called the Group Micro Enterprise Loan Products (GMELP).
This loan product is suitable for Kenyans who have a formally recognized group and are looking to finance their business as a group.
Features
- Amounts loaned: Between Sh 20,000 to Sh1,000,000
- 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 instalments or lump sums.
- Saving 5% of the approved amount respectively, channelled towards groups Members' savings scheme
The Groups scoring will be appraised through a credit scoring algorithm based on collective individual members' score, including but not limited to, their savings and repayment history.
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 of at least 5 members.
- Each member should have an active sim card for the past 90 days onany Mobile Network Opera
- Engage in an economic activity in the Priority Sectors (as listed under core objectives)
- The chama verified by Government Institution ie MSEA, Social Services and BRS
- All group members should not have defaulted on the personal loans.
READ: How to apply for Hustler Fund loan via mobile app, USSD