Why Hustler Fund Defaulters May Be Blocked From Renting Houses in New Proposal
If the government approves a new proposal, individuals who have defaulted on loans from the Hustler Fund could potentially face obstacles in renting homes and obtaining loans in the future.
Elizabeth Nkuku, the Acting CEO of the Financial Inclusion Fund, stated that the government is in the process of creating a credit-scoring mechanism to evaluate qualifications for owning a home.
During a media interview on Saturday, Nkuku expressed that individuals who fail to repay hustler loans might face difficulties in obtaining future financial assistance, such as loans from specific financial institutions.
“So one of the things we are going to do and we are going to roll it out is creating a score that can tell you, if you’re going to come and rent my house let me see your hustler fund score,” stated Nkuku.
It was elaborated that the effectiveness of the credit score rating system hinges on an individual’s repayment history and track record with borrowed funds. Additionally, there are intentions to eliminate the necessity of collateral for borrowing in the future.
The credit score system will assign points to individuals who consistently make timely loan repayments, thereby facilitating their ability to obtain loans more easily.
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At first, the system will focus on evaluating defaulters of the Hustler Fund loan before expanding to incorporate additional lenders.
“So eventually we shall grow this for a more comprehensive review so you are not looking at only the Hustler Fund, but how we shall include other people”, elaborated Nkuku.
People who consistently meet their loan payments punctually can utilize this track record as a bargaining chip to access additional loans and higher loan sums in their future endeavors.
Nevertheless, in light of this recent development, the government’s budget proposal for the Financial Year 2024/2025 incorporated a strategy to allocate additional funds to entities such as Boda Boda Rider Saccos and Mama Mboga groups.
Based on official records, more than 50,000 active groups have received Ksh151 million, aligning with the government’s intended purpose upon launching the group product under the Hustler Fund.
According to reports, the current repayment rate for the Hustler Fund stands at 73%, with Ksh40 billion already disbursed to borrowers.
Why Hustler Fund Defaulters May Be Blocked From Renting Houses in New Proposal
