Co-operatives and Micro, Small and Medium Enterprises Cabinet Secretary Simon Chelugui has explained how groups and chamas can apply for the second phase of the Hustler Fund loan.
The Group Micro Enterprise Loan products allow members to apply for loans ranging between Ksh20, 000 to Ksh1 million based on the average credit score of each of the group members.
Chelugui stated that just like the personal loan product, groups can access the fund by dialing *254# on their phones and then follow the prompts.
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 then thereafter invite others.
“Invited members must accept the group invite for it to be active. Members will receive a notification with the group’s limit,” the CS said.
Upon completion of the group creation process, officials can request for a loan, which must be approved by five random members, three members and two officials.
“Only an official can initiate the transfer of funds, and for the members to receive the funds, it has to be approved by three random members and two officials,” Chelugui added.
Any member can repay the loan either partially or in full.
This second phase of the Hustler Fund, targeting groups such as chamas and Saccos, was launched by President William Ruto on June 1.
It is 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.
By Thuita Jaswant
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