Hustler Fund doubles loan caps for good borrowers
Hustler Fund borrowers with proven capacity to conform to stipulated repayment terms can now enjoy a higher loan limit after the Co-operatives Cabinet Secretary Simon Chelugui announced changes in the credit system.
Mr Chelugui touted the positive reception garnered by the state-backed credit plan stressing that the repayment habits of individual borrowers will strictly guide loan limit review.
“We have witnessed tremendous growth in the first two-and-a-half months of Hustler Fund. We are getting very positive feedback from beneficiaries, which is one reason why we have increased the limits.
“Meaning, therefore, that the changes will be implemented case-by-case. The increment is based on [an] individual’s record. One’s loan limit will be based on how regularly one borrows and repays their loan,” he said.
Over Kes18 billion has been disbursed to more than 18 million borrowers since the product was launched on November 30 last year with savings, comprising 5 percent of the loan books reaching Kes912 million.
Next, all Hustler Fund borrowes will be getting credit scores which President William Ruto noted during the 50th anniversary of the Kenya Police Sacco in early February. “By the end of this month, every borrower will be assigned a financial grade. This will explain what makes one have a good grade,” he said.
Early this month, the President lauded the World Bank for offering technical assistance to the credit plan that targets a majority of small-scale traders noting that the global lender will help make the fund more inclusive and transformative to millions of ordinary Kenyans.
