The government has partnered with savings and credit co-operative societies (Saccos) as the preferred vehicles for development in the disbursement of the hustler fund loan through the launch of a new digital financial inclusion initiative called the Biashara loan.
The Biashara loan is part of the Hustler Fund Personal Loan Product, which is a revolving fund that provides credit to small businesses and individuals who have no collateral or formal banking history.
Co-operatives Cabinet Secretary Simon Chelugui said the launch of the Biashara loan will provide a pathway for Saccos to partner with the government.
“I urge sacco leaders to take advantage of this affordable facility to benefit your communities,” he said during the 33rd annual delegates meeting to celebrate the opening of Nafasi DT Sacco’s new branch in Kayole, Nairobi as quoted by People Daily.
He further lauded Saccos for coming up with innovative ways to meet the needs of its members, including building up the share capital of the society, asset base, deposits and loans portfolio.
The digital product has two components, individual and group. The individual micro-enterprise loan product will lend between KES 10,000 and 200,000 at 7% interest, calculated pro-rata or daily.
The loan has flexible repayment terms of 1, 3, 6, or 9 months, with a maximum term of one year.
Customers should dial *254# on their mobile phones to apply for the loan and select their business category (Agriculture, Trade, Manufacturing, Service Providers). They also need to enter their business registration number and KRA pin linked to the business.
The Biashara loan offers flexible loan limits and repayment periods depending on the customer’s needs and capacity. Customers can also top up their existing loans if they meet certain criteria.
The digital loan is expected to boost economic growth and create employment opportunities for millions of Kenyans who run micro-SMEs across various sectors just like the hustler fund.
Read also; Government Raises Hustler Fund Borrowing Limit by 100%.
