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How To Access Hustler Funds As Group, Chamas And Get Accepted

BY Getrude Mathayo · August 10, 2023 04:08 pm

On June 1^st, President William Ruto launched the second phase of the Hustler Fund, targeting groups such as chamas and Sacco’s. The Group Micro Enterprise Loan products allow members to apply for between 20,000 shillings to 1 million shillings.

Ruto said loans would be based on the average credit score of each of the group members terming the first phase of the Hustler fund as revolutionary.

He noted that close to 10 million Kenyans have been blacklisted by the credit reference Bureau, and were locked out of the borrowing system.

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The Hustler Fund Group loan product is the new, innovative product under the Financial Inclusion Fund commonly known as the Hustler Fund. This a revolutionary and transformational Fund that aims to provide access to responsible finance and low-interest rates for personal, micro, small, and medium-sized enterprises (MSMEs) in Kenya.

The group loan product targets groups registered by the Micro and Small Enterprises Authority (MSEA) such as chamas, associations, and Saccos, and aim to bridge the gap between these entrepreneurs and access to capital and help fuel economic growth through collective-driven competitive market enterprise.

On August 9^th, the Ministry of Co-operatives and Micro, Small, nd Medium Enterprises Cabinet Secretary Simon Chelugui explained how groups and chamas can apply for the Hustler Fund.

Chelugui, on X, formerly known as Twitter, said he had received so many questions in different forums on how a group can acquire a loan from the fund.

“Just like the personal product, groups can access the fund by dialing *254# on their phones and then following the prompts,” Chelugui said.

He said the first step is to create a group with a minimum of 10 members including 3 officials. Only a chairperson, treasurer, or secretary can create a group. Once the official creates the group, he or she proceeds to add 2 other officials.

He added that the members of the group are added by one of the three officials. Chelugui said the invited members must accept the group invites for it to be active.

“Complete Group Creation. Any official can complete group creation, the group must have a minimum of 10 members including 3 officials. Members will receive a notification with the group’s limit,” the CS said.

According to Chelugui, once the group creation process is complete, officials can move to request a loan. Only officials can request a loan and the request must be approved by five random members; three members and two officials,” Chelugui said.

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He said five random members and two officials must approve the loan request for the funds to be disbursed into the group’s account.

The CS said that only an official can initiate a transfer of funds, and for the members to receive the funds, it has to be approved by three random members and two officials. Five random members consisting of two officials and three members must approve the transfer of funds for the funds to be disbursed into the members’ accounts.

When it comes to the repayment of the loan, any member can repay the loan either partially or in full.

How To Access

Group creation/registration

First, you need to create a group of 10 members including three officials. Note that only a chairperson, treasurer, or secretary can create the group

Add official

Once the official creates the group, he or she proceeds to add 2 other officials

Adding Members/ Accepting the invite

The members are added by an official. The invited members must accept the group invite for it to be active.

Complete the group creation

Any official can complete group creation, the group must have a minimum of 10 members including 3 officials. Members will receive a notification with the group’s limit.

Related Content: Kenyans Are Yet To Repay 75% Of Hustler Fund

Request Loan

Once the group creation process is complete, officials can move to request a loan. Only officials can request a loan and the request must be approved by five random members; three members and two officials.