In a significant milestone for financial inclusion, President William Ruto has unveiled Bridge Loan, an innovative product under the Hustler Fund, designed to triple borrowing limits and extend repayment terms.

This enhancement, which debuted during the fund’s second anniversary, targets over two million borrowers, reflecting the administration’s commitment to empowering small-scale entrepreneurs and transitioning them into formal credit markets.

Key Features of the Bridge Loan

The Bridge Loan offers several features that set it apart from the initial Hustler Fund product launched in November 2022:

• Increased Borrowing Limits: Eligible borrowers can now access up to three times their current credit limit, providing greater financial flexibility.
• Extended Repayment Periods: The repayment period has been extended from 14 to 30 days, giving borrowers more time to manage their cash flow.
• Consistent Interest Rate: The annual interest rate remains at an affordable 8%, with a one-month rollover option at a slightly higher 9.5%.
• Nine-Category Credit Scoring: Borrowers are now assessed using a sophisticated credit scoring system, ranging from A1 (excellent) to C3 (poor creditworthiness).

This new product reflects a strategic effort to support small businesses while encouraging responsible borrowing behaviour.

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Performance and Impact of the Hustler Fund

Since its inception, the Hustler Fund has disbursed an impressive Sh60.5 billion to 24.7 million borrowers, achieving a 79.5% repayment rate. While Sh48.1 billion has been repaid, about Sh12.4 billion remains in default. The fund has also accumulated Sh3.5 billion in savings, which are divided into:

• 30% Short-term Savings
• 70% Long-term Savings (pension) managed by the Kenya National Entrepreneurs Savings Trust, generating returns aligned with treasury bill rates.

The compulsory savings requirement, introduced in November 2023, ensures that borrowers not only access loans but also build financial security for the future.

Driving Financial Inclusion with Data

President Ruto emphasised the role of data in transforming the Hustler Fund into a reliable credit system. “Over the last two years, we have assessed all borrowers and can now assign credible credit scores,” he said.

This credit scoring mechanism is expected to act as collateral, enabling borrowers to access funding beyond the Hustler Fund through traditional banks and financial institutions.

Dr. Ruto urged banks to incorporate Hustler Fund repayment records into their lending frameworks, paving the way for borrowers to graduate into the formal credit ecosystem.

Borrower Demographics and Usage Patterns

Insights from the fund’s performance reveal notable trends:

• Gender Distribution: 52% of borrowers are men, while 48% are women.
• Age Groups: A majority (61%) are youthful, 29.3% are aged 40-59, and 9.4% are over 60.
• Borrowing Behavior: 34.82% (8.6 million accounts) are repeat borrowers, while the remaining 16.1 million accounts represent one-time users.

These figures underscore the fund’s broad reach and its role in addressing diverse financial needs across Kenya.

Challenges and Opportunities

While the Hustler Fund has made remarkable progress, challenges persist. The Sh12.4 billion in defaults highlights the need for enhanced borrower education and strategies to improve repayment rates.

However, the fund’s achievements, including its savings scheme and innovative credit scoring, offer a promising roadmap for financial inclusion.

The Hustler Fund app has become a popular tool for individuals seeking financial support through loans in Kenya. Many users access the services conveniently using the Hustler Fund USSD code, which allows quick transactions without needing a smartphone.

For those new to the platform, understanding the Hustler fund loan process is straightforward, with options clearly outlined for different needs. Customers can also reach out for assistance via the Hustler Fund customer care number or the official Hustler Fund contact for any inquiries.

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In addition, the fund’s integration with telecommunications providers like Hustler Fund Airtel ensures seamless service delivery. If you’re looking for more information, the official Hustler fund Kenya platforms, including the Hustler Fund number, provide detailed guidance and support.

Building on Success

The introduction of the Bridge Loan represents a bold step in advancing the government’s Bottom-Up Economic Transformation Agenda.

By increasing borrowing limits, extending repayment terms, and supporting savings, the Hustler Fund continues to empower small businesses and individuals, bridging the gap between informal and formal financial markets.

As President Ruto noted, the Hustler Fund is more than a loan facility; it is a foundation for economic empowerment, offering Kenyans the tools to thrive in an evolving financial landscape.