- President William Ruto during the launch said loan defaulters will not be listed on CRBs, as they will have another chance of reborrowing.
- To access the funds, borrowers will dial *254# on their mobile phones.
Hustler Fund borrowers who will default on the loans will see their interest rates increased from 8 per cent to 9.5 per cent.
If a customer will not have paid the loans within the required time, they will be added an extra 15 days, before the increment of the interest rate.
The borrowers who default will also have their Hustler Fund account frozen.
"After more than 30 days of default, the borrower loses all the credit scores accumulated and the Hustler Fund account is frozen," he said.
President William Ruto during the launch said loan defaulters will not be listed on CRBs, as they will have another chance of reborrowing.
"The defaulter can repay the loan at once or in instalments and begin borrowing again after full repayment," he said.
However, Ruto said borrowers stand a chance of increasing their loan limits if they repay their loans before the stipulated repayment day elapses.
"Wakati unakopa na kulipa ndio unapata nafasi nyigine ya kukopa tena, unagraduate uende micro loan itoke Sh50,000 uende level nyigine," he said.
This is loosely translated to: "When you borrow and repay your loan, you get another chance of reborrowing and graduate to another level of the Huster Fund."
During a press brief, Cabinet Secretary for Co-operatives and SMEs Development Simon Chelugui said the loan limit will increase depending on the behaviour of the borrower.
To access the funds, borrowers will dial *254# on their mobile phones.
Kenyans who have subscribed to Safaricom, Airtel and Telkom will be required to dial the short code to access the loans.