All you need to know about Hustler Fund by Telkom

The Hustler Fund is part of the government’s answer to predatory lending that has historically denied many households an opportunity to make their rightful contribution to nation-building. The Fund is expected to offer much-needed relief and a new lease of life to over 8 million Kenyans who had been blacklisted.

As a result, citizens can start or boost their hustles without being crushed by predatory lenders, shylocks and over-the-roof interest rates. The Fund is designed to improve financial access to individuals, micro, small, and medium-sized enterprises (MSMEs) in Kenya. It will lend to individuals and businesses at 8 per cent per annum, the lowest interest rates ever charged in the country.

How do I opt-in?

Access the Hustler Fund via the USSD *254#.

To be eligible, one needs to fulfil the below conditions:

1) Be Kenyan citizen with a valid National ID (18 years of age and above);

2) Have a valid registered SIM card and have been on any network for at least 90 days.

3) The minimum loan amount that can be disbursed is KSh500 (the minimum a customer can request at a time).

Join the #HustlerNation, Dial *254#, and OPT-IN to access Hustler Fund Credit and Saving Services.

Boost your Biashara with Hustler Fund, Dial *254# NOW and OPT-IN to affordable credit at low-interest rates.

Hustler Fund is Here! Dial *254# to access affordable credit at low-interest rates and grow your Hustle.

1. What is the Hustler fund?

The Hustler Fund is a digital financial inclusion initiative designed to improve financial access to responsible finance for Kenya’s personal, micro, small, and medium-sized enterprises (MSMEs).
The fund brings you credit to where you are – transforms credit into “credit on the go.”

2. Which legal instruments allow its operationalization?

The Hustler Fund is a creation of the draft Public Finance Management (Financial Inclusion Fund) Regulations, 2022.

3. Why is the Hustler fund important?

The Hustler fund is important because it provides access to responsible finance for personal, micro, small, and medium-sized enterprises (MSMEs) by innovating, developing, and deploying bottom-of-the-pyramid financial services and products that are affordable, accessible, and appropriate for the unserved and underserved persons, including credit, saving, insurance, pension, and investment products.
It is envisaged that the fund will help to improve financial access and reduce poverty.

4. How does the Hustler fund work?

The Hustler fund will work in two ways:

By providing a digital platform where people find the best deals on financial products; secondly,
Developing a series of digital tools and resources to help people understand and manage their finances better.

5. How do I access the Hustler fund?

The Hustler fund is accessible through the USSD and the T-kash APP (Soon) platforms.

6. What products are available under the Hustler fund?

There are four products available under the Hustler fund, these include:

Personal Finance – (Kshs 500 to Kshs. 50,000 depending on your scoring)
Micro Loans
SME Loans and
Start-Up

The first instalment of this fund is the Personal Finance product, which will be launched on November 30, 2022.

7. How do I know which product is appropriate for me?

You can see different available products when you visit the Hustler fund website.
Each product describes what it is for and whom it is designed to help.
You can also read reviews from other users to understand what they thought about the product before deciding.

8. What are the product features of the personal finance loan?

The loan limits for this product will be a minimum of Ksh. 500 up to a maximum that will be determined by the borrower’s credit score and capped at Ksh. 50,000.00.
The limit increase will depend on the individual customer’s performance on consistent loan borrowing and timely repayment.
The limit shall be reviewed and adjusted based on the borrowing and repayment history of previous Hustler Fund loans taken.

9. What is the interest charge on the personal loan?

The loan interest rate is capped at 8% per annum, computed pro-rated.

10. How do I know if I am eligible to access any of the products?

Must be a Kenyan citizen of 18 years of age and above
Must have a valid national Identification Card (ID)
Must have a registered mobile number from a recognized Mobile Network Operator in Kenya, i.e., either Airtel, Safaricom, or Telkom
Have a mobile money account, i.e., either Airtel Money/M-Pesa/T-Kash
The SIM card in question can/ will only be eligible if it has been used for over 90 days.
Reside and conduct economic activities in Kenya.
Provide the Location of residence during the onboarding process (where applicable)

11. How can I register an account on the platform?

The customer is required to:

Sign up for the Hustler Fund platform by dialling USSD *254# or through the mobile app.
Accept the Terms and Conditions to join the Fund
Set and Confirm Service Pin
Upon fulfilment of steps 1-3, an SMS will be sent to notify them of their successful registration and the limit assignment.
In the event of a failed registration, the borrower will be notified via SMS.

List of Kenyan companies that provide the hustler fund loan

12. What Happens if I am not registered to T-Kash

You will not receive your loan if you are not registered to T-kash. Loans will be disbursed to the T-Kash wallet, and repayment will also be made through the wallet.

13. How Can I Register for T-Kash?

Visit Telkom shops or Agents to register for T-kash. Call 160/100 for assistance.

14. What happens if you lose your mobile phone and have a Hustler Fund account?

Your money is safe because your Mobile Money PIN protects your Hustler Fund account.
Once you replace your SIM card at your Mobile Network Operator outlet, you can access your Hustler Fund account using your current Mobile Money PIN.

15. After a SIM swap, will your line pick the Hustler Fund account you had on a previous line, or must you opt in again?

You do not need to opt in again.

16. How do I apply for a loan?

Once registered and loan limits assigned, the customer is required to follow the application steps to access the loan:

Dial USSD code *USSD code# or mobile application.
Select the loan request option to view the limit, interest, and loan tenure.
Enter the loan amount and press OK to continue
Confirm loan details as displayed to continue
Enter Mobile Money pin
Receive SMS notifications on Loan allocation with relevant loan information.

17. What does loan processing entail?

Once the customer has successfully applied and has received an SMS notification regarding loan information, back-office loan processing takes place in the following steps:

Loan Appraisal – The application will be subjected to the predetermined formula based on existing qualification parameters
Loan Approval- Approval shall be granted based on meeting eligibility criteria, credit worthiness.

18. How will my loan be disbursed?

Upon approval, the loan will be disbursed to the borrower’s mobile wallet.
Out of the total approved loan, 95% shall be disbursed to the mobile wallet of the borrower and 5% channelled to the savings Scheme.

19. How long is the loan repayment period?

The loan repayment period shall be 14 days with an interest of 8%.
The borrower may re-pay the loan as a lump sum or in part, provided that the full repayment is made within 14 days.

20. What happens if I don’t pay on time?

The customer’s credit rating is negatively affected if the loan is not repaid within the stipulated 14 days. However, if the loan is paid in full, the contract is closed, and the customer can request another loan. All transaction notifications to the customer will be by SMS.

21. Can I get more than one Loan?

You can only get one loan at a time and qualify for another loan if you Pay your loan in full.
Qualified borrowers are eligible for only one loan at a time; hence multiple loan borrowing on varied networks is prohibited.

22. How can I increase my loan limit?

Continue using Hustler Fund and pay your loan on time
Also, assessment of credit history on subsequent loan applications and repayment shall apply to determine subsequent qualifications for the facility.

23. What is the Loan Recovery & Collection Management process?

This will involve monitoring and evaluating the facility disbursed and repaid to identify the level of portfolio risks; the following initiatives will be adopted for loan recovery and management.

The borrower will be notified of the due date and outstanding amount 5 days prior via SMS.
On the thirtieth day of the facility, the customer is notified that the facility is due.
The borrower is notified that the facility is overdue one day after the thirtieth day.
After the due date, the borrower shall not be eligible to apply for any other facility with the Fund until the outstanding loan is fully paid.
Overdue reminders shall be sent every 5 days up to a maximum of 30 days.

24. How do I check my Loan Balance?

Via USSD, dial *254#
Select Loans
Check Loan Status
Select Loan balance
Enter Mobile Money PIN
You will receive an SMS message with your Loan balance

On App

This will be displayed on the Hustler Fund app with an option to hide or unhide

25. Can I pay the loan in part?

The borrower may re-pay the loan in full or in part, provided that the full repayment is made within 14 days.

26. Are there penalties in case of default for the personal finance loan?

15 days after the default date, the interest rate will be adjusted to 9.5% per annum.
Thereafter persistent default spanning 30 days and over will see you lose your existing credit score and your account frozen.
Interest continues to accrue pegged on the in-duplum rule, and recovery methods will be initiated.

27. Is it true that customers will be charged Kshs 10 million for default?

No. This charge is a penalty to the fund administrators for abusing the monies set aside for the fund’s beneficiaries.

28. What are the benefits of saving in the Hustler Fund?

Customers will earn interest of up to 9% p.a. on their short-term savings balance.
The government will match contributions on a 2:1 ratio up to a maximum of Ksh.6,000 per annum.

29. How can I save into Hustler Fund?

Two ways of savings

When you request a loan
Deposit /send directly to your savings from your Mobile Money wallet

Please note in both instances, the 70% and 30% split will apply i.e., 70% of the amount will be deposited into long-term savings (pension scheme) and 30% into short-term savings.

30. Can I withdraw/access my savings immediately?

Customers can only access the short-term savings
To access your short-term savings:
Customer must have cleared repaying their full loan or
Repay 30% of the loan borrowed
Example: If the Customer borrowed Ksh 1,000, they should have repaid Ksh 300 (30%*1,000)

31. What percentage of my loan will go to my Savings?

5% of your loan will go into your Savings as below:
70% of the 5% will go into long-term Savings (Pension), and 30% of the 5% will go into short-term savings
g., if you borrow Ksh 1,000, Ksh 50, i.e. (5% *1,000) will go into your savings as below
Ksh 35 (70% *50) – Will go to your pension account that is within the Hustler Fund
Ksh 15 (30% * 50) – Will go into your short-term savings account is within the Hustler Fund.

32. How do I check my savings balance?

Using USSD:
- The customer will dial *254#
- Select the option for Savings
- Select Check Balance
- Enter Mobile Money PIN
- You will receive an SMS message with your Loan balance