Why Hustler Fund is Your Road to Building a Secure Financial Future
On November 30, Hustler Fund, President William Ruto’s digital financial inclusion initiative, was officially launched.
The Hustler Fund is a revolutionary and innovative savings facility designed to empower individuals and entrepreneurs in Kenya.
It allows users to save money, access loans, and build businesses. The Fund offers several attractive features that make it easy for customers to save money and manage their finances.
Hustler Fund works by providing a digital platform where people can find the best deals on financial products; and by developing a series of digital tools and resources to help people understand and manage their finances better.
As a result, the Fund is all too important for individuals and MSMEs (micro, small, and medium enterprises), as it gives them access to affordable, accessible, and appropriate products to lift them financially.
The products include loans, savings, insurance, pension funds, and investments, all of which will go a long way in helping reduce poverty levels among Kenyans by improving financial accessibility.
How Does One Access the Hustler Fund?
The Hustler Fund is accessible through the USSD code *254# and a mobile APP available in the M-PESA Mini-App category.
You can opt-in by dialling the *254# on your mobile phone, choosing Option 1 to register, and waiting for a message confirming your eligibility.
It is worth noting that the USSD *254# is zero-rated. There is no charge for dialling the service.
Alternatively, you can open your M-PESA app and launch the Hustler Fund mini-app. Click Register, enter your M-PESA PIN and wait for a confirmation message. The M-PESA pin is required to authenticate if you are the real owner of the mobile wallet.
The confirmation message will tell you the amount of personal finance loan you qualify for, depending on your credit score.
How Do You Apply for a Loan?
Once you register and you get a loan limit, follow the following steps to access the loan:
- Dial USSD code *234# or log in to your mobile application
- Select the loan request option to view the limit, interest, and loan tenure.
- Enter the loan amount and press OK to continue
- Confirm loan details as displayed to continue
- Enter your M-PESA PIN
- Receive SMS notifications on Loan allocation with relevant loan information.
NOTE: There are no transaction costs when you receive the loan in your mobile wallet or when repaying the loan.
The loan limits between a minimum of KSh. 500 up to a maximum of KSh. 50,000. This amount will depend on your consistent loan borrowing and whether you repay it on time.
Once your loan is approved, the money will be disbursed to your Mobile Money account. However, only 95% of the funds you qualify for will be available and directly accessible. The remaining 5% will be deposited into your savings scheme.
The 5% of your savings will be divided into 70% long-term and 30% short-term savings. That is, 70% of the amount you save will go into long-term (pension) savings, and 30% will go into short-term savings.
For example, if you qualify for Ksh. 1,000:
95% will be available in your mobile wallet at (95/100) x (1000).
5% of the 1,000 shillings will go into your savings, but it will be split into two:
- KSh 35 (70/100) x (50) – Will go to Pension account
- KSh15 (30/100) x (50) – Will go to a short-term savings account
The Kenya National Entrepreneurs Savings Trust (KNEST) is the pension scheme into which your pension contributions will go each month. The age at which you will access your pension funds depends on the scheme you’re contributing to.
The benefit of using the Hustler Fund Pension Scheme is that you earn an interest rate of up to 9% p.a. on your short-term savings balance. The government will match your contribution on a 2:1 ratio of up to a maximum of Ksh.6,000 6,000 per year.
Hustler Fund Repayment
The loan repayment period of the Hustler Fund loan is 14 days, with an interest rate of 8% per annum. If you borrowed 1000, you would be expected to pay the loan as a lump sum or in part, provided that the total repayment is made within 14 days.
Kindly note that you won’t be able to borrow more loans until your previous one is fully paid. You will always be notified of the due date and outstanding amount five days prior via SMS.
On the thirtieth day of the facility, you will also be notified that the facility is due, and one day after the thirtieth day, you’ll get a notification that your loan is overdue.
If, after 15 days, you haven’t repaid your loan, the interest rate will be adjusted to 9.5% per annum.
Can You Use Hustler Fund to Repay Your Fuliza?
No. Fuliza will be suspended for up to 24 hours to ensure you use your Hustler Funds first.
However, any other funds you receive into your mobile number during this period will be used to repay any outstanding Fuliza amount.
How Do You Check Your Loan Balance?
To check your balance, follow the following steps:
- Dial *254#
- Select Loans
- Click on Loan Status
- Select Loan balance
- Enter Mobile Money PIN
- You will receive an SMS message with your Loan balance
You can also check your loan balance on the loan app. It will be displayed on the app, and you can hide or unhide it.
Moreover, a mini statement which shows the last five transactions can be accessed through the App or USSD under savings.
Opting Out of the Hustler Fund
You can quickly opt out of the Hustler Fund loan, but you will still have the option to continue saving on the service. Even after you opt out, your savings will still be available, and you can view and continue saving.
The beauty about continuing with the Hustler Fund for saving is that you can make any number of deposits into your savings.
There is no minimum or maximum on the number of deposits you can make. Similarly, you can withdraw from your savings account as often as possible if you have funds in your mobile wallet.
However, you can only access short-term savings, but you must have cleared repaying your entire loan or paying at least 30% of the full amount.
If you borrow 1,000, you must’ve repaid at least Ksh. 300 to be able to access your savings. If you have opted out, don’t have any loans, and continue using the Hustler Fund for savings, your money will be available immediately.
Overall, Hustler Fund is an excellent option if you want to borrow, save, and earn incentives from the government.
With its easy-to-use App, USSD services, access to mini statements, and flexible repayments, Hustler Fund offers an excellent opportunity to stay on top of your savings and start building a secure financial future.