The government has increased the hustler fund borrowing limits.According to a statement issued by Cooperatives and MSME Development Cabinet Secretary (CS) Simon Chelugui the tremendous growth generated in the few months the Fund has been operational has resulted to the increase.
Chelugui further said that the raise is also as a result of set to a directive issued by President William Ruto on February 3.
The CS, however, added that the increase will only apply to those who have borrowed repeatedly and dutifully repaid their loans.
This means that the changes will be implemented on an individual/case-by-case basis, with an individual’s borrowing record being referenced.
This also applies to loan borrowing limits, where an extension will be granted based on how frequently the borrower borrows and repays the loan.
It will also be reviewed after a 4-month gap to readjust the borrowing limits and allow borrowers access to more money.”The Hustler Fund will be reviewed every four months where individuals will be rated according to their repayment history,” read part of the statement.
Those who are currently receiving a loan limit of Ksh.3,000 will now receive Ksh.6,000, and this applies to all limit caps.
CS Chelugui also teased a new Hustler Fund called ‘Micro Credit,’ which will serve Saccos, Startups, and groups by allowing them to borrow on behalf of their members. The loan amount will be much larger, ranging from Ksh.250,000 to Ksh.2.5 million.
Since its inception, 18.8 million Kenyans have subscribed to the Financial Inclusion Fund, borrowing Ksh.18.5 billion in 30 million transactions.
Ksh.10 billion of the borrowed amount has been repaid, while Ksh.912 million has been deposited in the savings account.The number of those who have borrowed twice sits at 6.1 million.
CS Chelugui has also expressed optimism that the Huslter Fund will continue exceeding the government projections and rope in more “hustlers” by helping them access affordable credit to boost their businesses.
“So far, the Hustler Fund has surpassed all projections and existing records in the financial sector —in just under three months,” said CS Chelugui.
“We have received positive stories from borrowers who have properly utilized their loans to stabilize and expand their business. This is very encouraging.”
The Hustler Fund is stored in wallets held in two banks: KCB Bank and Family Bank. These banks inject liquidity into the mobile money wallets of borrowers.