You will be required to pay your loan within 14 days after borrowing from President William Ruto’s Husler Fund, regulations have revealed.
The Fund which offers four different types of loans, start-up loans, micro-loans, SME loans, and personal loans, will attract an annual interest rate of eight percent calculated per day. This means that a customer who borrows the minimum amount of Ksh500 will pay back Ksh501.53 after 14 days.
Upon the expiry of the 14 day, if the loan is not repaid, the borrower is given 15 more days to clear the loan, although the borrower’s credit rating is affected negatively. If the loan is not repaid within the additional grace period, the interest rate is increased to 9.5 percent.
Read: How Equity Bank Will Award Hustler Fund Graduates
The Hustler Fund account is then frozen and the borrower loses all accumulated credit scores after more than 30 days of default.
Defaulters of the Hustler Fund Loans will not be negatively listed with the Credit Reference Bureaus (CRBs), and customers will be allowed to borrow again after clearing their loans.
Upon loan approval, 95 percent of the money will be sent to the borrower’s mobile money account while 5 percent of it will be deposited in their savings account. 30 percent of the saved amount is set for short-term savings and 70 per cent for long-term (pension) savings.
A customer cannot borrow money using more than one mobile number because the ID number serves as The Hustler Fund’s unique identifier.
Email your news TIPS to editor@thesharpdaily.com
