Hustler Fund (Fuliza) repayment period set at 14 days

The repayment period for President William Ruto’s ambitious credit access kitty, Hustler Fund, will be 14 days.

The fund, launched on Wednesday, will offer four different products: start-up loans, micro-loans, SME loans, and personal loans.

With a 14-day repayment period and an annual interest rate of eight percent calculated per day, a customer who borrows KES500 will pay back KES 501.53 after 14 days, representing KES 1.53 in interest.

If the loan is not paid back within 14 days, the customer’s credit rating is affected, and they are given an additional 15 days. If the loan is still not paid back, the interest rate increases to 9.5% per year.

The Hustler Fund account is frozen and the borrower loses all accumulated credit scores after more than 30 days of default.

There is also no CRB listing, so this default has no impact on the debtor’s credit score with other lenders. The borrower who defaults may pay off the loan all at once or in installments, and after full repayment, they may borrow again.

When a customer borrows, the approved loan is sent to their mobile money account, deposits 95 per cent of it in their money wallet, and places 5 per cent of it in their savings account.

The five per cent that goes toward the savings plan is split into 30 per cent for short-term savings and 70 per cent for long-term (pension) savings.

Kenyans can access the Hustler Fund through a USSD code and mobile app platforms offered by mobile network providers like Safaricom, Airtel, and Telkom.