Kenyans Borrow Ksh33 Billion from Hustler Fund
Since the small loans initiative was launched in late 2022, Kenyans have borrowed Ksh33 billion from Hustler Fund, Cooperatives and Micro and Small Enterprise Cabinet Secretary Simon Chelugui announced on Monday, July 17.
Ksh22.5 billion has been repaid out of the total amount borrowed. In addition, account proprietors have saved Ksh1.6 billion, demonstrating their dedication to improving their credit scores.
Considerable savings of Ksh1.6 billion have resulted from the participation of 20,6 million consumers in the fund, a statistic worthy of note.
In contrast, the fund had effectively attracted a total of 20,6 million users as of Monday, July 16.
At the same time, the cabinet secretary disclosed that transactions totaling Ksh45.8 million had been conducted, with 7.2 million recurrent customers.
The Hustler Fund provides Micro, Small, and Medium-Sized Enterprises (MSMEs) with more affordable credit options than other digital loan products and Micro Finance Institutions (MFIs).
The fund comprises four distinct loan categories, namely personal financing, microloans, small and medium-sized enterprises (SMEs), and start-ups.
Borrowers may apply for quantities ranging from Ksh500 to Ksh50,000 under the category of personal loans. These loans have a 14-day repayment period, assuring a short-term commitment from borrowers.
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On the other hand, SMEs and startups have access to loans of up to Ksh250,000, giving them the financial resources they need to support and grow their enterprises.
Chelugui also disclosed that Ksh110 million has been disbursed via the second loan product offered by the Hustler Fund, known as Hustler Fund Group loans. This service allows groups to request loans between Ksh20,000 and Ksh1,000,000.
During the reporting period, a total of 344,978 groups were formed using Hustler Fund Group Loans. In this category, approximately 817,884 members requested loans, which were ultimately approved. However, 408,371 members were still awaiting approval.
The CS also revealed that a total of 16,352 unique borrowings had been registered by groups pursuing a variety of entrepreneurial endeavors.
As of 16 July 2023, the organizations have repaid a total of Ksh2.3 million.
Continuing with the group category, the CS noted that 2,269 loan requests were awaiting member approval.
The Hustler Fund provides financing to registered Micro and Small Enterprise Authority (MSEA) target groups. It offers loans with an annual interest rate of 7% and a default rate of 1.5% on decreasing balances.
Kenyans Borrow Ksh33 Billion from Hustler Fund
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