A Hustler Group can be defined as a group of people who come together to obtain a loan from the Financial Inclusion Fund, popularly known as the Hustler Fund.
Initially, the Financial Inclusion Fund contained only the Personal Loan Product (PLP) for individuals. However, on June 1, 2023, during the Madaraka Day celebrations in Embu County, President William Ruto launched the Hustler Fund Group loan product specifically for Hustler Groups.
“The second product of the Hustler Fund will usher our unique collective-driven competitive market enterprise to the online domain. To promote inclusion, the Hustler Fund is going to be deployed to groups such as chamas and saccos to help overcome exclusion and barriers to participation in credit, savings, social security, health insurance, and other socioeconomic amenities,” President Ruto said.
The President further added: “I am glad that this launch of the group loan product is taking place against the backdrop of the phenomenal success of the Hustler Fund Personal Loan product. I expect that this product will encounter even greater appetite from the market.”
How does Hustler Groups work?
The Hustler Fund’s Hustler Group Loan is designed to extend loan facilities to Kenyans who have a formally recognized group and are looking to finance their business, with the objective of helping them meet their financial needs.
The government launched the Hustler Groups with an understanding of today’s competitive business landscape, whereby entrepreneurs and small business owners face numerous challenges when it comes to securing the necessary capital for growth and expansion.
Thus, one of the primary benefits of Hustler Group Loans is their ability to provide entrepreneurs with the much-needed capital to fuel growth and expansion.
For Kenyan groups to qualify to apply for this loan product, they must meet the following requirements:
Requirements to apply Hustler Fund as a group in Kenya
- All group members should be Kenyan citizens aged 18 years and above
- The group must have a minimum membership of ten (10) people
- Each member must possess a valid National Identification Card (ID)
- Each member should have an active SIM card for the past 90 days
- They must have a registered mobile wallet with any of the three MNO networks (Airtel, Safaricom, Telkom) for more than 90 days
- The Hustler Groups and chamas must be verified by relevant government institutions, i.e., MSEA, Social Services, and BRS
- All group members should not have defaulted on the Hustler Fund Personal Loan Product
- The group must engage in economic activity in the priority sectors of the Kenyan economy, such as agriculture
Features of Hustler Fund Group Loan Product
From accessing capital for expansion to navigating cash flow challenges, as a midsize business owner, you may face internal and external factors that drive the need for investment in your company.
If you are a group of ten or more people, as seen, with access to capital from the Hustler Fund, you will be able to seize growth opportunities, scale your business operations, and remain competitive in the market.
However, before you apply, it is important to know its features, such as loan limits, interest rates, key benefits, and more.
| Features | Hustler Group Loan attributes |
| Loan amount | – Minimum amount is Ksh20,000 – Maximum amount is Ksh1 million |
| Age of applicants | – Minimum amount is Ksh20,000 – Maximum amount is Ksh1 million |
| Loan tenure | – Maximum 6 months |
| Security | – Group guarantee – No collateral |
| Processing fee | NIL |
| Interest rates | – Enjoy a low interest rate of 7% per annum |
How to apply for Hustler Fund’s Hustler Group loans
It’s important to consider Hustler Fund’s Hustler Group loans before taking out a private loan from banks or other financial institutions because there are differences in interest rates, repayment options, and other features;
Experts say Hustler Group loans offer more borrower protection compared to private loans, as they are more flexible and equitable. This is particularly true when providing incentives for specific groups of people who may not have qualified for business loans from banks due to rigorous credit history checks and other factors such as income amount, stability, and type of income.
To start applying for a Hustler Group loan,
- Dial *254# on your phone
- Go to Hustler Groups
- Create a group
- Add members
- Follow the prompts to get the loan
Only Hustler Group officials, such as the secretary or the treasurer, can request Hustler Fund Microloans on behalf of the group. This loan request shall be subject to approvals from the other group officials and two regular members.
After successfully requesting a Microloan for the group, 95% of the loan amount will be disbursed to your group account, while 5% will be automatically channelled into your group savings account.
Unlike common group loans, where each member receives an individual loan, Hustler Group funds are disbursed to the account of the official who applied. This official is then responsible for subdividing the funds among the members.
“To transfer funds from the group account to a member’s mobile wallet, another approval must be done by the officials (and any two members) before the transaction is processed,” says Susan Mang’eni, the Principal Secretary in the State Department of Micro, Small and Medium Enterprises Development.
The entire group, however, is responsible for repaying any outstanding group loan within the loan repayment period from the date of borrowing. This would enable them to grow their credit limit, qualifying them for higher loan amounts and future Hustler Fund loan products, she adds. “Overdue loans shall attract a penalty charge of 1.5% per year, charged daily on the outstanding principal.”
