Why is the Hustler fund important?
1. The Hustler fund is important because it provides access to responsible finance for personal, micro, small, and medium-sized enterprises (MSMEs) by innovating, developing, and deploying bottom-of-the-pyramid financial services and products that are affordable, accessible, and appropriate for the unserved and underserved persons, including credit, saving, insurance, pension, and investment products.2. It is envisaged that the fund will help to improve financial access and reduce poverty.
How does the Hustler fund work?
The Hustler fund will work in two ways:
1. By providing a digital platform where people find the best deals on financial products; secondly,
2. By developing a series of digital tools and resources to help people understand and manage their finances better.
Which legal instruments allow its operationalization?
The Hustler fund is a creation of the draft Public Finance Management (Financial Inclusion Fund) Regulations, 2022.
When will the Hustler fund be launched?
The first installment of this fund is the Personal Finance product, which will be launched on November 30, 2022.
How do I know which product is appropriate for me?
- When you visit the Hustler fund website, you will be able to see different available products.
- Each product has a description of what it is for and whom it is designed to help.
- You can also read reviews from other users to get an idea of what they thought about the product before making your decision.
1. The loan limits for this product will be a minimum of KSh. 500 up to a maximum that will be determined by the borrower’s credit score and capped at KSh. 50,000.00.
2. The increase in limit will be dependent on the individual customer’s performance on consistent loan borrowing and repayment on time.
3. The limit shall be reviewed and adjusted based on the borrowing and repayment history of previous Hustler Fund loans taken.
Does the loan have a processing fee, or you get the full amount?
1. No. There is no processing Fee
2. Out of the total approved loan amount, on disbursement 95% shall be deposited to your Mobile Money wallet, and the remaining 5% shall be deposited to your savings account scheme of the fund
If I borrowed erroneously, can the amount be reversed?
No reversal: customer will just have to repay the loan
How do I repay my Loan?
Loan repayment will be made from your Mobile Money account i.e., Self-payment
Can I change my number and transfer the loan to a new number?
No, you cannot.
Will the loan automatically clear other loan obligations I have on the phone?
No, it will not.
Can I register more than one mobile number?
1. No. You can only register one number into the Hustler Fund i.e., the customer can only opt-in once with a unique identifier as National ID
2. If you need to register another number, you will need to opt out of the current line
What happens if you lose your mobile phone and have a Hustler Fund account?
Your money is safe because your Hustler Fund account is protected by your Mobile Money PIN.
Once you replace your SIM card at your Mobile Network Operator outlet, you will be able to access your Hustler Fund account using your current Mobile Money PIN
After a SIM swap, will your line pick the Hustler Fund account you had on a previous line, or do you have to opt-in again?
You do not need to opt-in again
What does loan processing entail?
Once the customer has successfully applied and has received an SMS notification regarding loan information, back-office loan processing takes place in the following steps:
1. Loan Appraisal - The application will be subjected to the predetermined formula based on existing qualification parameters
2. Loan Approval- Approval shall be granted based on meeting eligibility criteria, credit worthiness.
How will my loan be disbursed?
Upon approval, the loan will be disbursed to the borrower’s mobile wallet.
Out of the total approved loan, 95% shall be disbursed to the mobile wallet of the borrower, 5% channeled to the savings Scheme.
What happens if I don’t pay on time?
If the loan is not repaid within the stipulated 14 days, the customer’s credit rating is negatively affected. However, if the loan is paid in full, the loan contract is closed, and the customer can request another loan. All transaction notifications to the customer will be by SMS.
Can I get more than one Loan?
No. You can only get one loan at a time and qualify for another loan if you Pay your loan in full
Qualified borrowers are eligible for only one loan at a time hence multiple loan borrowing on varied networks is therefore prohibited.
How can I increase my loan limit?
1. Continue using Hustler Fund and pay your loan on time
2. Also, assessment of credit history on subsequent loan applications and repayment shall apply to determine subsequent qualifications for the facility.
What is the Loan Recovery & Collection Management process?
1. This will involve monitoring and evaluation of the facility disbursed and repaid to identify the level of portfolio risks, the following initiatives will be adopted for loan recovery and management.
2. The borrower will be notified of the due date and outstanding amount 5 days prior via SMS.
3. On the thirtieth day of the facility, the customer is notified that the facility is due.
4. One day after the thirtieth day, the borrower is notified that the facility is now overdue.
5. After the due date, the borrower shall not be eligible to apply for any other facility with the Fund until the outstanding loan is fully paid.
6. Overdue reminders shall be sent every 5 days up to a maximum of 30 days.
How do I check my Loan Balance?
Via USSD
· dial *254#
· Select Loans
· Check Loan Status
· Select Loan balance
· Enter Mobile Money PIN
· You will receive an SMS message with your Loan balance
On App
· This will be displayed on the Hustler Fund app with an option to hide or unhide
Can I pay the loan in part?
Yes. The borrower may re-pay the loan in full or in part provided that the full repayment is done within 14 days.
Are there penalties in case of default for the personal finance loan?
1. 15 days after the date of default the interest rate will be adjusted to 9.5% per annum.
2. Thereafter persistent default spanning 30 days and over will see you lose your existing credit score and your account frozen.
3. Interest continues to accrue pegged on the in-duplum rule and recovery methods will be initiated.
Is it true that customers will be charged KSh 10 million for default?
No. This charge is a penalty to the fund administrators from abusing the monies set aside for the beneficiaries of the fund.
How can I save into Hustler Fund?
Two ways of savings
1. When you request a loan
2. Deposit /sending directly to your savings from your Mobile Money wallet
Please note in both instances the 70% and 30% split will apply i.e., 70% of the amount will be deposited into long-term savings (pension scheme) and 30% into short-term savings
Can I withdraw/access my savings immediately?
Customer can only access the short-term savings
To access your short-term savings:
- Customer must have cleared repaying their full loan or
- Repay 30% of the loan borrowed
How do I check my savings balance?
Using USSD:
· Customer will dial *254#
· Select the option for Savings
· Select Check Balance
· Enter Mobile Money PIN
· You will receive an SMS message with your Loan balance
On App
· This will be displayed on the Hustler Fund app with an option to hide or unhide
What will happen to my savings if I opt out?
Your savings will still be retained for 365 days, and you will still be able to view and continue saving.
At what age will the customer access the pension funds?
18 – 30 years: Save for a minimum of 10 Yrs from Date of Joining or for maximum period terminating at age 35 or continue saving till retirement age
31 – 40 years: Save for a minimum of 7 years from the date of joining or for a maximum period terminating at age 45 or continue saving till retirement age
41 – 50 years: Save for a minimum of 5 years from the date of joining or for a maximum period terminating at age 50 or continue saving till retirement age
Above 51 years: Save for a minimum of 3 years or continue saving till retirement age.
