Kenyans applying for loans from the Hustler Fund will not be required to have collateral (loan securities). This is as per the latest guidelines from the National treasury.
The National treasury also says borrowers who default on facilities from the Hustler Fund will not be blacklisted with Credit Reference Bureau (CRBs).
“We are moving away from the CRBs and collaterals and we will be basing disbursements on the character of borrowers. The more we can formalise the customers’ behaviour the more we can graduate them to higher loan limits,” Says the Treasury.
According to the Treasury, the first round of disbursements which covers loan values of between Ksh.500 and Ksh.50,000 will be targeted to individuals across the country with Sacco’s, chamas and enterprises qualifying for loans at a higher amount in subsequent phases.
“The first phase of the fund will be targeted at individuals devolved in the Counties. The medium-term plan is to graduate the limit to about Ksh.500,000 to cater for medium-sized businesses. In the long-term, the maximum loan limit is likely to average Ksh.3 million for larger enterprises,” adds the Treasury.
The Cabinet has announced that the first phase of the Fund would be launched on November 30 with loan limits capped at Ksh.50,000 based on each borrower’s credit score.
