The Hustler Fund was launched by the Kenyan government on November 30th, 2022, more than two years ago. Since its initial launch, it has become an instant hit, attracting over 24 million Kenyan users. But you see, the Hustler Fund is not just your everyday loan platform. Why? Its main objective is to cater to the interests of all Kenyans, specifically targeting those in the formal sector.
What even makes the Hustler Fund so special is that it offers a range of loan products that one can easily apply for. But despite the option you choose, one problem many users find is that the borrowed money is just enough. A reason for this is that the Hustler fund has loan limits, and when you apply for any product, you will usually start with a lower amount; thus, as a user, you will have to meet some specific criteria to be awarded a sustainable amount next time you borrow. Therefore, do you know how to increase your Hustler Fund loan limit?
Hustler Fund Loan Products
Increasing the Hustler Fund Loan limit starts with understanding its products. The Hustler Fund website describes the loan as “a digital financial inclusion initiative designed to improve financial access to responsible finance for personal, micro, small, and medium-sized enterprises (MSMEs) in Kenya.”
There are three Products under the Hustler Fund as follows:
Personal Loan Product (PLP)
PLPs target individuals with Jobs that don’t pay well enough for them to meet their daily needs. Often, these are hawkers, Mama Mbogas, and many others. Under this category, one can borrow fr a loan from Ksh 500 to Ksh 50,000, attracting an interest rate of 8% per annum and 1.5% for late payment, which is up to 14 days with an option to extend it up to 30 days.
Microenterprise Loans
The second loan product on the Hustler Fund’s bucket list is Microenterprise loans targeted to individuals owning large and small businesses. This loan is further divided into two categories, the first being the Group Micro Enterprise Loan Products (GMELP) and, as its name suggests, it is for Kenyans who have formed a group or Chamas to fund their business. However, for them to be eligible, the group must have at least 5 members.
Under GMELP, members can borrow any amount from Ksh 20,000 to Ksh 1,000,000, attracting an interest rate of 7% per annum on reducing balance and a 1.5% default rate; the loan repayment period is 6 months from the disbursement date.
The second product in this category is an individual micro-enterprise loan (IMELP), which targets any kenyan looking to invest in their own business that the Business Registration Service formally registers. The amount one can borrow ranges from Ksh 10000 to ksh 200,000 with an interest rate of 7% per annum on reducing balance.
Savings
Although not a loan product, it is the final Husler fund product, which is compulsory for all Hustler fund users. For any Hustler fund product that you use or borrow, 5% of the borrowed amount goes to savings, which you can access at any time.
From the amount directed towards savings, you should know that 30% of the amount goes into a short-term account, which you can access but only after 12 months and the remaining 70% can be accessed once you attain retirement age, which is 60 years for most civil servants in Kenya.
How To Increase Hustler Fund Loan Limit
Now, you have to know one thing about the amounts that each Hustler Fund Loan product offers during application: when you dial *254# on your SIM Carrier. The first time that you borrow, your first loan amount will usually be very low, and in most cases, the loan will give you its initial amounts as follows:
| Loan Type | Estimated First Amount (Ksh) |
|---|---|
| Personal Loan Product (PLP) | 500 |
| Group Micro Enterprise Loan Products (GMELP) | 20,000 |
| Individual Micro Enterprise Loan Products (IMELP) | 10,000 |
The Hustler fund calculates how to allocate such amounts using its own in-house algorithms. This algorithm does not check with the CRB but instead relies on your phone data, such as M-Pesa, T-Ksh, and Airtel money transaction history.
But the Good news is that there are actually a number of steps that you can take to grow your loan limit slowly until you reach the maximum limit. Here are the necessary actions to take:
Early repayments
The secret to achieving higher loan limits with most loan apps in Kenya is to make early loan repayments once you borrow, and so is the case with the Hustler fund loan product. Basically, the logic here is that their algorithms will take this as a good sign of responsible financial behavior, and the next time you borrow, your limit will be capped at a higher amount.
Keep Borrowing again and again.
Here at Mawese, we don’t advocate relying on loans and instead opt for seeking alternative options such as borrowing such as borrowing from close friends as, in most cases, there is no interest or falling into debt traps. Only borrow when necessary or under certain circumstances. However, you should know that using more Hustler fund products will also increase your chance of getting a higher loan amount.
Continue Saving
The best thing about the Hustler fund is that you can continue saving on the platform even after you opt-out. You can save any amount, and the next time you opt-in, chances are that you will get a higher loan amount. But remember these: while using any product from the Husterl fund, 5% of that borrowed amount goes directly into savings, which you can access either after retirement or after 12 months.
Conclusion
And there you have it. I believe that this article has shed some light on the Hustler Fund loan limits and how to increase them. So next time you apply for any Hustler Fund loan product and notice that your loan limit is low, follow the tips I have provided in the article. All the best.