The launch of the long-awaited hustler funds has sparked mixed reactions from a section of the targeted beneficiaries.
According to Regina a trader at Githurai market the launch of the fund will supplement her capital to increase the stock.
She says since Covid-19, operating a small business has not been easy since the cash flow was affected as many companies where she operates her business had laid off some their employees .
She also says that the long seasons of campaigns has also played in tough economic times Kenyans are facing.
“The funds though it looks very little, as a business person I have to appreciate because it will boost my capital, I will take it because the economy has not recovered since Covid-19 striked the country, ” says Regina.
According to Benson Owili, followed the application prompt shortly after president William Ruto launched the funds.
His says that confidence level went down after he was asked to key-in his M-Pesa PIN, what he called a red flag on his personal data.
He says he was expecting to acquire the loan so that he could expand the business but the expectations have since melted down on the stringent terms just like other mobile loans platforms.
” This is a state owned fuliza with stringent terms, especially at a point you are required to reveal your personal M-Pesa details like PIN,I think it is time Kenyans should know the government is coning its own citizens. I wanted to take the loans to add some grains like sorghum, maize ,beans and other cereals but for now I’m not confident,” Owili stated.
The hustler funds will be available to all registered mobile money transfer platforms both Safaricom and Airtel
As it is the case with other credit plans, the Hustler Fund has terms of repayment which if the customer defaults, they will have to face penalties.
In case of default for the personal finance loan; the interest rate will be adjusted to 9.5% per annum 15 days after the date of default.
Thereafter, persistent default spanning 30 days and over will see a customer lose their existing credit score and their account frozen.
To access the funds, the applicant dials a USSD code *254# and mobile application platforms of any of the mobile network operators in Kenya.
To register an account on the platform, a customer is required to sign up for the fund through the USSD code or the mobile app.
To apply for a loan, a registered customer is required to:
• 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.
By Rodgers Oduor