If you are a beneficiary of the Hustler Fund loan, you must pay it back on time to avoid penalties and interest charges. Repaying your loan on time not only increases your creditworthiness but also increases your loan limit.
However, if you are unsure about the repayment process, don’t worry, we have got you covered. In this article, we will show you how to repay your Hustler Fund loan with ease.
The repayment process for the Hustler Fund loan is straightforward and can be done through your mobile phone. You can either repay the loan in full or in part, provided the full repayment is done within 14 days.
You can use Paybill, Fuliza, or USSD code *254# to repay your loan. After the repayment, you will receive an SMS notification confirming your payment.
Understanding Hustler Fund Loan
What is Hustler Fund Loan
Hustler Fund Loan is a loan product offered by Equity Bank in partnership with the Government of Kenya. This loan is designed to support small and medium-sized enterprises (SMEs) and individuals who are looking for quick and affordable financing solutions.
The loan is available to Kenyan citizens who are 18 years and above and have a valid national ID. The loan amount ranges from Ksh. 1,000 to Ksh. 50,000, and the repayment period is 14 days with an interest rate of 8% per annum.
How Does It Work
To apply for the Hustler Fund Loan, you need to have an Equity Bank account and register for the service by dialing *254# on your mobile phone. Once registered, you can apply for the loan by following the prompts on your phone.
The loan is disbursed directly to your Equity Bank account, and you can access the funds immediately. The loan repayment is done through your mobile money account, such as M-Pesa, Airtel Money, or T-Kash. You can repay the loan as a lump sum or in part, provided the full repayment is done within 14 days.
Eligibility Criteria for Hustler Fund Loan
To be eligible for a Hustler Fund loan, you must meet certain requirements. Here are the eligibility criteria that you need to fulfill:
1. Kenyan National ID
You must possess a valid Kenyan National ID to apply for the Hustler Fund loan. This is a mandatory requirement, and you cannot proceed with the loan application without a valid ID.
You must be at least 18 years old to apply for the Hustler Fund loan. This is a legal requirement, and the loan application will not be approved if you are below 18 years of age.
3. Active SIM Card
You must maintain an active SIM card from any mobile network operator. This is necessary because the loan amount is disbursed directly into your mobile money account.
4. Credit Worthiness
The approval for the loan shall be granted based on meeting eligibility criteria and credit worthiness. Therefore, your creditworthiness will be assessed by the lender, and the loan amount will be determined based on your credit score.
The Hustler Fund loan is designed for low-income earners who wish to venture into small businesses. Therefore, your income level will be taken into consideration when assessing your eligibility for the loan.
6. Loan Amount
Individuals qualify for loan amounts of between Kshs. 500 and Kshs. 50,000. Small businesses and startups qualify for loans of up to Kshs. 50,000, and groups have Kshs. 10 million limits.
7. CRB Listing
The good thing about Hustler Fund is that you can be granted the loan even if you have been negatively listed on the Credit Reference Bureau (CRB).
This means that if you have a poor credit score, you can still apply for the Hustler Fund loan and get approved if you meet the other eligibility criteria.
Make sure you meet all the eligibility criteria before applying for the Hustler Fund loan. This will increase your chances of getting approved and help you avoid any unnecessary delays in the loan application process.
Applying for Hustler Fund Loan
If you are interested in applying for a Hustler Fund loan, the process is fairly straightforward. Here are the steps you need to follow:
- Dial *254# from your mobile phone
- Select the “Request Loan” option
- Enter your loan amount and confirm
- Enter your mobile money PIN
Once you have completed these steps, you will receive a confirmation message on your phone with the amount you qualify for within two hours.
To apply for a Hustler Fund loan, you will need to provide the following documents:
- National ID or Passport
- KRA PIN certificate
- Business permit or license
- Bank statements for the last six months
- Proof of income, such as payslips or invoices
Make sure that you have all the required documents ready before you start the application process. This will help to speed up the process and ensure that your loan application is processed quickly.
Overall, the application process for a Hustler Fund loan is simple and easy to follow. By providing all the required documents and following the steps outlined above, you can increase your chances of being approved for a loan and getting the funds you need to grow your business.
When it comes to repaying your Hustler Fund loan, there are several strategies you can use to ensure that you pay it off on time and without incurring any additional fees or penalties.
Here are a few repayment strategies that you can consider:
Creating a Budget
One of the best ways to ensure that you can repay your Hustler Fund loan on time is by creating a budget. This will help you to keep track of your income and expenses, and ensure that you have enough money to cover your loan repayments.
To create a budget, start by listing all of your sources of income, including your salary, any side hustles, and any other sources of income. Then, list all of your expenses, including rent, utilities, groceries, transportation, and any other bills or expenses that you have.
Once you have a clear picture of your income and expenses, you can determine how much money you have left over each month to put towards your loan repayment.
Make sure to prioritize your loan repayment in your budget, and cut back on any unnecessary expenses to ensure that you can make your payments on time.
Setting Up Automatic Payments
Another strategy that you can use to ensure that you repay your Hustler Fund loan on time is by setting up automatic payments.
This will ensure that your loan repayments are made on time each month, without you having to worry about remembering to make the payment yourself.
To set up automatic payments, log into your mobile money account and select the option to set up automatic payments for your Hustler Fund loan.
You can choose to have the payment deducted from your account on a specific day each month, or you can choose to have it deducted as soon as the funds are available in your account.
Increasing Your Income
If you’re struggling to make your loan repayments on time, one option is to increase your income. This can be done by taking on a side hustle, asking for a raise at work, or finding other ways to earn additional income.
Consider your skills and interests, and look for opportunities to monetize them. For example, if you’re good at graphic design, you could offer your services to local businesses or individuals who need design work done.
Or, if you’re a good writer, you could look for freelance writing opportunities online.
By increasing your income, you’ll have more money available to put towards your loan repayment each month, making it easier to pay off your loan on time and avoid any additional fees or penalties.
Dealing with Challenges in Repayment
If you are facing difficulties in repaying your Hustler Fund loan, there are several options available to you. In this section, we will discuss some of the most common ways to deal with repayment challenges.
Negotiating with Lenders
If you are unable to repay your loan on time, it is important to contact your lender as soon as possible. Explain your situation and try to negotiate a new repayment schedule that works for both parties.
Most lenders are willing to work with borrowers who are experiencing financial difficulties, as long as they are kept informed and are confident that the borrower is making a genuine effort to repay the loan.
If you have multiple loans with different lenders, it may be worth considering loan consolidation. This involves taking out a new loan to pay off all your existing debts, leaving you with a single monthly payment.
This can make it easier to manage your finances and help you avoid missed payments and penalties.
Seeking Professional Help
If you are struggling with debt and are unable to negotiate a new repayment schedule or consolidate your loans, it may be worth seeking professional help.
There are many debt counselling services available that can provide advice and support to help you get back on track.
These services can help you develop a realistic budget, negotiate with your lenders, and provide ongoing support and guidance as you work towards becoming debt-free.
Remember, it is important to take action as soon as possible if you are experiencing difficulties in repaying your Hustler Fund loan. Ignoring the problem will only make it worse, and can lead to additional fees, penalties, and damage to your credit score.
By taking proactive steps to address your debt, you can avoid these consequences and get back on track towards financial stability.
Frequently Asked Questions
What are the requirements to repay a Hustler Fund loan?
To repay your Hustler Fund loan, you need to have an active Mobile Money account. You will also need to have enough funds in your account to cover the loan amount and any applicable fees.
How do I make a payment towards my Hustler Fund loan?
To make a payment towards your Hustler Fund loan, dial *254# from your mobile phone and select the “Repay Loan” option. Enter the desired repayment amount and your Mobile Money PIN to confirm the transaction.
What happens if I miss a payment on my Hustler Fund loan?
If you miss a payment on your Hustler Fund loan, you will be charged a late fee. The amount of the fee will depend on the amount of the loan and the length of time that the payment is overdue. It is important to make your payments on time to avoid additional fees and penalties.
Can I pay off my Hustler Fund loan early?
Yes, you can pay off your Hustler Fund loan early. This can be done by dialing *254# from your mobile phone and selecting the “Repay Loan” option. Enter the desired repayment amount and your Mobile Money PIN to confirm the transaction.
Is there a penalty for paying off my Hustler Fund loan early?
No, there is no penalty for paying off your Hustler Fund loan early. In fact, paying off your loan early can help you save money on interest charges.
Can I use my Hustler Fund savings to repay my loan?
No, you cannot use your Hustler Fund savings to repay your loan. The savings account and the loan account are separate, and funds cannot be transferred between them. You will need to use your Mobile Money account to make loan payments.
Repaying your Hustler Fund loan is a crucial step in maintaining a positive credit score and avoiding any potential penalties. By following the steps outlined in this article, you can easily repay your loan and increase your loan limit for future borrowing.
Remember to always make timely payments and keep track of your loan balance to avoid any surprises. If you have any questions or concerns, don’t hesitate to contact the Hustler Fund customer service team for assistance.
In addition, it’s important to use your loan wisely and invest it in a way that will generate a return on investment. Consider seeking financial advice or consulting with a professional before making any major investment decisions.
Overall, the Hustler Fund provides an excellent opportunity for Kenyans to access affordable loans and improve their financial standing. By being responsible borrowers and making timely payments, you can take full advantage of the benefits of this program and achieve your financial goals.