President William Ruto launched the fund, saying it would help all Kenyan hustlers irrespective of who they voted for.
The loan amount that can be borrowed is between Sh 500 to Sk 50,0000. The repayment period is after 14 days.
So, what is the loan recovery and collection management process?
According to the regulations, loan collection and recovery will involve monitoring and evaluating the facility disbursed and repaid to identify the level of portfolio risks.
The following initiatives will be adopted for loan recovery and collection management:
● The borrower will be notified of the due date and outstanding amount 5 days prior via SMS.
● On the thirtieth day of the facility, the customer is notified that the facility is due.
● One day after the thirtieth day, the borrower is notified that the facility is now overdue.
● After the due date, the borrower shall not be eligible to apply for any other facility with the Fund until the outstanding loan is fully paid.
● Overdue reminders shall be sent every 5 days up to a maximum of 30 days.
The interest rate also increases to 9.5 percent per annum after the first fourteen days. After several reminders and the borrower does not repay the loan his or her accounts will be frozen until all the monies and the interest accrued is repaid fully.
