In less than 24 hours after the launch of the Sh. 50 billion Hustler Fund, Kenyans borrowed over Sh. 400 million. If you are among these Kenyans, you might wonder what will happen if you take the Hustler Fund loan then fail to repay.
For a start, you will have 14 days to repay the loan and qualify for another. Your timely repayments will increase your limits.
Customers who will not have repaid the facility in 14 days will get an extra 15 days to repay.
If the loan is still not settled, the interest rate will increase to 9.5 per cent per year.
In the event the customer is not able to repay back the loan after the extension, their Hustler Fund account will be frozen and he or she will lose all their accumulated credit scores after more than 30 days of default.
Customers who default on the loan will not be listed on the Credit Reference Bureau (CRB).
This means that defaulting on the Hustler Fund loan will not have an impact on your credit score with other lenders.
The borrower who defaults may pay off the loan all at once or in instalments, and after full repayment, they may borrow again.
When a customer borrows, the approved loan is sent to their mobile money account, deposits 95 per cent of it in their money wallet, and places five per cent of it in their savings account.