President William Ruto unveiled the Hustler Fund Group loan, an innovative financial solution targeting Micro, Small, and Medium-sized Enterprises (MSMEs) in Kenya.
This loan, catering to groups registered by the Micro and Small Enterprises Authority (MSEA), offers access to responsible finance with low 7% per annum interest rates on a reducing balance, coupled with a 1.5% default rate.
Eligible groups, including chamas, associations, and Saccos, can apply for amounts ranging from Kes 20,000 to Kes 1 million, fostering economic activities in sectors like agriculture, trade, manufacturing, services, and technology. The repayment period spans six months from disbursement, allowing flexibility in instalment or lump-sum payments, while a mandatory 5% savings scheme bolsters the financial health of group members.
Accessing Opportunities
Securing this innovative loan is hassle-free – eligible Kenyan citizens above 18 years with a mobile money wallet can apply by dialing *254# or using a mobile app. No collateral or guarantors are required, making this a landmark initiative in empowering MSMEs and driving economic growth.