Your Complete Guide to the Hustler Fund Terms and Conditions

The Hustler Fund is one of Kenya’s major initiatives to boost financial inclusion for individuals and micro, small, and medium enterprises (MSMEs). Understanding its Terms and Conditions is crucial for anyone considering using the Fund’s products. In this guide, we break down everything you need to know: eligibility, how to apply, the interest and savings structure, what happens if you default, and important rights and obligations.

What is the Hustler Fund?

The Hustler Fund is a digital financing product launched to provide affordable credit and savings opportunities for Kenyans who may be underserved by traditional banks.
It offers various product categories, including personal finance, group micro-enterprise loans, SME loans and startup financing.
Hustler Fund Terms and Conditions govern the relationship between the applicant/borrower and the administrators of the Fund (in conjunction with partner banks and mobile money operators) and are legally binding.

Key Eligibility Requirements

Before you opt in, you should know the eligibility criteria under the terms:

• Must be a Kenyan citizen aged 18 years or older.
• Must have a valid National ID number. 
• Must have an active mobile money account (e.g., via M‑Pesa, Airtel Money, or T-Kash) and a SIM that has been active for a certain period (for example, 90 days). 
• For group/enterprise products: groups must meet certain criteria (e.g., number of members, registration under the relevant authority), and all members are jointly liable.

Major Terms of the Loan and Savings Components

Loan structure

• Upon approval, you may be assigned a borrowing limit; for individual personal finance, the limit may range (for instance) from KSh 500 up to KSh 50,000 depending on scoring.
• Interest rate: for some personal loans rate has been indicated around 8% per annum. 
• Disbursement: only a portion (for example, 95%) of the approved loan goes to your mobile wallet; the remainder (5%) is automatically channelled into a savings component of the Fund. 
• For group products, the loan limit may be higher (for example, up to KSh 200,000 for a group under a certain product).

Savings component

• 5% of the loan advanced is deducted from savings when you borrow.
• Of that 5%, 70% is allocated to a long-term savings/pension scheme and 30% to short-term savings.
• You may earn interest on your savings (for example, up to 9% per annum on short-term savings).

Repayment & default terms

• The repayment period for some products (personal finance) may be 14 days.
• If you don’t repay on time, the interest rate may increase (for example, after 15 days, the rate may go up to ~9.5%). 
• Defaulting may affect your assigned credit limit, and you may be blocked from borrowing again until full repayment.
• For group loans, all members are jointly and severally liable for the loan.

Important Legal and Operational Terms

• By opting into the Fund (via USSD code or mobile app) you are deemed to have read, understood, and accepted the terms and conditions.
• The Fund (and partner bank/mobile network operator) may amend the terms from time to time — notice may be given, and continued use signals acceptance.
• Personal data: you consent to sharing personal information (ID number, mobile money account status, credit history) with the banking/financing partner and mobile network operator for onboarding, credit assessment, and service provision.
• Disputes: Terms may set out dispute resolution via arbitration, jurisdiction in Kenya.
• Account/Wallet responsibilities: You are responsible for your PIN, mobile device, and prevention of unauthorised access; you must follow security procedures.

Application Process: Step by Step

1. Dial the USSD code (for example *254#) on your mobile network or use the Fund’s mobile app.
2. Accept the Terms and Conditions when prompted.
3. Provide/confirm your mobile money account, ID details, and any other required information.
4. On approval, you will receive SMS confirmation of your loan limit or disbursement.
5. Use the funds as required; note that a portion is automatically put into your savings component.
6. Repay the loan within the specified period via your mobile money account; timely repayment is critical to avoid penalties.

What to Watch Out For – Risks & Considerations

• Interest Rate Changes: Late repayment may trigger higher interest or penalties.
• Savings Locked or Restricted: Although you save automatically, access to some of the savings (especially the long-term portion) may be limited until conditions are met.
• One Loan at a Time: Some versions of the product restrict you to one active loan at a time.
• Impact on Credit Limit: Default or late repayment may reduce your future borrowing capacity or prevent you from obtaining further credit.
• Joint Liability (Groups): If you apply as part of a group, you bear liability not only for your own use but for the group’s collective repayment.
• Data Privacy: You are sharing significant personal/financial data; ensure you’re comfortable with the terms.
• Understanding Terms Fully: The legal terms may be lengthy. Ensure you read and understand them before accepting.

Frequently Asked Questions (FAQ) Highlights

• Can I increase my loan limit? Yes — typically by borrowing responsibly and repaying on time, your credit score/performance may improve your limit.
• What happens if I swap my SIM card or change my mobile number? The product is tied to your mobile money account and registered number; changes may affect access.
• Can I withdraw my savings immediately? The short-term savings portion may be accessed earlier once you meet the criteria; the long-term (pension) portion will have age or maturity constraints.
• Does taking a loan cost a processing fee? In some product versions, there is no separate processing fee beyond the 5% savings deduction.
• What happens if I default? Default may trigger higher interest rates, block future borrowing, affect the credit rating, and require the Fund to report to credit bureaus.

Conclusion

The Hustler Fund Terms and Conditions lay out detailed rights, obligations, and processes for borrowers and savers under this government-led financial inclusion initiative.

While the opportunity to access credit and simultaneously save is attractive, it is essential to read and understand the terms before opting in.

Timely repayment, awareness of the savings component, and knowledge of what happens in default will help you make the most of the Fund while avoiding pitfalls.

Whether you’re an individual seeking a personal finance loan or a group / MSME considering a larger product, stay informed, use responsibly, and monitor your borrowing performance. If in doubt, consult the full Terms & Conditions document on the official Hustler Fund website.