Ultimate MESH Guide To The Hustler Fund And Will You Really Go To Jail If You Don’t Pay?

It was such a success that Kenyans were borrowing an average of Ksh 17m an hour on the first day. In fact, the number of transactions on the first day averaged Ksh 500 per second on the same day.

Moreover, nearly 1.2 million Kenyans registered their accounts in the first 24 hours. So if you don't want to miss out on this opportunity, stick around to find out more.

In this post, you'll learn everything you need to know about this bottom-up pot of gold. From what it is, who it's for, who can apply, how much you can borrow and so much more. But first...

It's a digital financial inclusion initiative created to improve access to credit for both individuals and MSMEs. Digital means you can apply for a loan through USSD code *254# or mobile network operator apps i.e. Safaricom, Airtel, and Telkom.

Ni kama to Fuliza but without their bad habits. And financial inclusivity means that anyone can access it. That includes micro, small, and medium-sized enterprises. Kutoka mama mboga, bodaboda riders, boutique owners, chamas, and more.

The idea is to help us, the common mwananchi, to get access to affordable loans to start or grow your business. Moreover, with Hustler Fund we don't have to jump through as many hoops as we would when we borrow from a bank.

That means, hakuna mambo ya kujuana ama kusubmit your application and sit in front of a committee. Ni wewe na tenje yako.

What's more, you don't need to worry about your negative CRB listing. And it's way cheaper to borrow from Hustler Fund than your typical bank, SACCO, etc. You don't need to fill out any forms or wait for weeks or months to be approved.

You don't need a 3rd party guarantor or an asset like a piece of land for security. And best-of-all, you don't have to jump through any bureaucratic hoops to access your loan. It's pretty much your typical mobile-based loan.

The Hustler Fund will also help you prepare for retirement through the National Social Security Fund(NSSF). Let us show you how in the example below.

Let's say you qualify for a loan of Kshs 1,000. Five percent (5%) of that amount, in this case, Kshs 50 is automatically sent to your savings account.

That means you'll only receive Kshs 950 in your mobile money e.g. mpesa, account. It's pretty much like how okoa jahazi works. Plus you get to enjoy a 9% interest rate per year on your savings account.

Now, 70% ya iyo chwani (Kshs 50), that is Kshs 35, is going to go to your pensions account. While the remaining 30% or Kshs 15 is going to go to your short-term Hustlers Fund account.

But it gets even better, especially if you don't have formal employment. That's because the government will add 50% to your savings account. In other words, if you manage to save Kshs 50, the government will give you an extra Kshs 25, making for a total of Kshs 75.

The Hustler Fund offers three main loan products at the time of writing this. They include:

1. Individual or Personal loans. You can borrow anywhere from Kshs 500 to 50,000.

2. Micro business or group loans and start-ups. Here you can borrow from Kshs 50,000 to Kshs 10 Million.

3. Small and Medium-sized Enterprise loans. (This is currently unavailable but is scheduled to be released by the end of February 2023).

much it's going to cost you.

The interest rate for The Hustlers Fund is eight percent (8%) per annum. If you're calculating on a per-day basis it comes to around 0.02%. Moreover, you're given two weeks (14 days) to pay it back. With such a short repayment window, we wouldn’t recommend it for starting a new venture.

For example, If you are a farmer, and you need a loan to buy seeds, your crop won't be ready for harvest by the time you need to repay the loan. Now as a bodaboda rider, you get a loan to put down a deposit for your motorcycle. But even then, you’d be cutting it close. After all, there are no guarantees in business.

Let's say you borrow Kshs 10,000. With a yearly interest rate of 8%, the interest you'd have to pay at the end of two weeks is Kshs 31. So at the end of two weeks, you'd repay a total of Kshs 10,031. Pretty affordable right?

When you compare it to the current interest rates offered by banks, it's nearly 50 to 500 times cheaper. That's because most loans are offered at an interest rate between one and ten percent per day.

That said, if you fail to pay the loan within the 14-day time limit, then your credit rating takes a hit. But they'll give you an extra 15 days to repay your loan. But if you're still unable to repay it after the extra 15 days are up, then the interest rate rises to 9.5% per year.

Moreover, they give you an extra 30 days to repay. Failure results in you losing all your credit scores. And your Hustler Fund account is frozen. And No, the government is going to come after you if you default—fail to repay, your loan. Neither will they touch your 5% savings or use it to repay your loan.

PS: Your credit score or credit rating is what banks use to determine your ability to repay a loan on time. It's calculated based on your past loan borrowing habits.

Fortunately, it doesn't affect your credit rating with other lenders. And you can still repay your loan all at once or partially with installments. After repaying your loan, you’ll be able to borrow again.

With this Ultimate MESH guide to the Hustler Fund , sasa tuko na all details and what next is ni how to access it. According to H.E President William Ruto and C.S Simon Chelugui, you need to:

1️⃣Be a Kenyan Citizen.

2️⃣Be above the age of 18.

3️⃣Be part of the underserved or low-income groups.

4️⃣Have a National ID (this is your unique identifier).

5️⃣Have a phone number with the three main mobile networks i.e. Safaricom, Telkom, or Airtel.

6️⃣Have a functioning mobile money account i.e. Mpesa, Tkash, or Airtel Money.

7️⃣Have a mobile number that you've been using for at least three months (90 days). That means you can't get a new sim card and register for the Hustler Fund.

8️⃣Provide details of where you live.

9️⃣Get a good conduct certificate (it's not a must-have but it helps to have one).

To access Hustler Fund loans as a group, you need to meet the following conditions:

1️⃣Create a youth or women's, group.

2️⃣Write a business proposal.

3️⃣Have a good conduct certificate.

4️⃣Provide details of where you live or your home address.

5️⃣Get four guarantors and their signatures.

6️⃣Moreover, out of the four guarantors, you need to be related to at least two people.

7️⃣Agree to serve a jail term for failing to repay your loan (defaulting) within six months of borrowing.

8️⃣Have a bank account with KCB or National Bank.

9️⃣Have a KRA pin.

As you'll soon find out, it's very easy to create a Hustler Fund account. There are two main ways you can access Hustlers Fund. The first is by downloading their application on Google Play Store: Search “ Hustlers Fund.” The app is very easy to use. The second is through USSD which is what we’re going to be showing you here.

1. Go to your mobile phone dialer and dial *254# and press call. Remember, this will only work if you have a Safaricom, Airtel, or Telkom line.

2. It will bring up three main options. That is "Register," "View Terms and Conditions," and "Know More." Choose "Register" to create your account.

3. Accept Hustler Fund terms and conditions by replying with "1". Here are the terms and conditions for each operator: Safaricom, Airtel, and Telkom.

4. Then you'll receive a prompt to enter your M-Pesa, Airtel Money, or Tkash pin to continue.

5. You'll then receive a text message confirming that you've successfully created your account. The SMS will also tell your Hustler Fund loan limits. If your registration was unsuccessful, you'll get a text message telling you the same.

Follow the following steps to apply for a Hustler Fund loan.

1. Open up your mobile phone dialer and dial *254#

2. Choose the first option i.e. "1. Request Loan" as your reply and click send. It'll show you your loan limit, terms, and interest rates.

3. Next, enter the amount you want to borrow and click send to get your loan application processed. The amount you enter shouldn't exceed your loan limit as indicated in the SMS you received. And don't forget, you only have 14 days to repay the loan at an interest rate of 8% per annum.

4. Enter your mobile money account pin i.e. M-pesa, Tkash, or Airtel Money pin to submit your loan application.

5. Confirm your loan application details and pay attention to your due date. After double-checking the details and if everything is okay, click send to get your loan.

6. You'll then receive an SMS confirmation with the loan information. That is if your loan was approved, how much money you've received and when you need to pay it back.

Once approved, the loan is sent straight to your mobile money account. And like we mentioned earlier, you'll only receive 95% of the loan amount. That's because 5% goes to your Hustlers Fund savings account linked to the NSSF.

To find out how much your loan balance is, follow the below steps.

1. Dial *254# on your mobile phone dialer or log on to Hustler Fund mobile app.

2. Choose the "Loans" options from prompt.

3. Reply by choosing "Check Loan Status" on menu.

4. Enter your mobile money account pin.

5. Wait for a text message showing you your current loan balance.

To check how much money you’ve saved, follow the following steps.

1. Dial *254# on your mobile phone dialer or log on to Hustler Fund mobile app.

2. Choose the "Savings" options from prompt.

3. Reply by choosing "Check Balance" in menu.

4. Enter your mobile money account pin.

5. Wait for a text message showing you your current savings balance.

As an individual, you can borrow anywhere from Kshs 500 to Kshs 50,000. Micro, Small and Medium-sized Enterprises can borrow upwards of Kshs 50,000 to Kshs 10 million. But this mainly depends on your borrowing and repayment behavior.

There's no such thing and you have to repay the loan since it can't be reversed.

You use your mobile money account to repay your loan. It works the same with Mshwari, Fuliza, and other mobile-based loans.

As of writing this, Hustler Fund does not allow you to transfer loans.

No. That's because your National ID is what is used to identify your account in the Hustlers Fund. If you want to register another number, then you have to opt out of the one that's registered.

Watu wa Kanairo. Anyway, if that happens, your savings are safe. Your Hustlers Fund account is pin-protected like your mobile money account is protected.

No. You can only borrow one loan at a time i.e. until you repay your current loan--in full, you won't be able to borrow again.

You can only increase your loan limit by sticking to your repayment schedule. The more reliable you are at doing this, the better your loan history is which qualifies you for a higher loan limit.

Your savings will still be there and you can view your current balance and continue saving.

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