How to Apply for Hustlers Fund in Kenya: A Guide for Entrepreneurs

The Hustler Fund in Kenya is a pivotal initiative aimed at promoting financial inclusion and supporting the entrepreneurial spirit among Kenyans, especially those in the informal sector. This guide provides detailed insights into the fund, its offerings, and how potential beneficiaries can apply for it.

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Introduction

Launched in November 2022 by President William Ruto, the Hustler Fund is more than just a policy measure; it’s a transformative approach to uplift Kenyans who face challenges accessing conventional financial services.

Targeting individuals, and micro, small, and medium-sized enterprises (MSMEs), the fund is a beacon of hope for economic empowerment and growth, especially for those reliant on informal employment and small-scale businesses​​.

Loan Products Offered by the Hustler Fund

1. Personal Loan Product (PLP):
   • Designed for individuals, especially in the informal sector.
   • Loan amounts range from Kshs 500 to Kshs 50,000.
   • 5% of the approved loan amount is automatically dedicated to savings​​.
2. Micro Enterprise Loan:
   • Targets business expansion and financial assistance for Kenyan entrepreneurs.
   • Divided into two sub-categories:
     • Group Micro Enterprise Loan Products (GMELP): For formally recognized groups, allowing borrowing of up to Kshs 1,000,000.
     • Individual Micro Enterprise Loan (IMELP): For sole business owners, offering loans up to Kshs 200,000​​.

Eligibility and Application Requirements

1. General Eligibility:
   • Kenyan citizens above 18 years with a valid national ID.
   • Registered mobile number from a Kenyan mobile network operator and access to a mobile money account.
   • Permanent residents of Kenya conduct economic activities within the country​​.
2. Specific Criteria for Loan Products:
   • PLP aligns with general eligibility.
   • Group loans require membership in a group engaged in economic activities.
   • Individual micro-enterprise applicants need an active SIM card for at least 90 days and a business KRA PIN​​.

Application Process

1. Via USSD:
   • Dial *254#.
   • Select the loan request option, and view limits, interest, and tenure.
   • Enter the loan amount and confirm.
   • Enter your mobile money PIN for confirmation​​.
2. Via Mobile App:
   • Download the M-Pesa App or use USSD for other operators.
   • Select “Hustler Fund” under the “Grow” option.
   • Follow the prompts to register and apply​​.

Loan Limits, Interest Rates, and Repayment

1. Loan Limits and Interest Rates:
   • Individual Loans: Between Kshs 500 and Kshs 50,000.
   • Group Loans: Ranging from Kshs 50,000 to Kshs 10 million.
   • Micro Enterprise Loans: Up to Kshs 200,000 for individuals and Kshs 1,000,000 for groups.
   • Annual interest rate of 8%, approximately 0.02% per day​​.
2. Repayment Terms:
   • Typically within 14 days from disbursement.
   • Default consequences include increased interest rates and potential account freezing​​.

The Hustler Fund represents a significant step towards financial inclusion in Kenya, offering both accessibility and affordability. It emphasizes the importance of financial responsibility, encouraging borrowers to plan for timely repayment. This initiative is not only a financial opportunity but a critical component in fostering economic growth and reducing financial disparities in Kenya.