Equity Group Holdings is set to launch a Ksh 250 billion kitty for small business owners under the government’s Hustler Fund.
Hustlers Fund which will provide loans to small businesses that have failed to secure loans from banks will be launched in December.
In a bid to support to government’s Ksh 50 billion fund, Equity Bank will offer loans to small businesses that will repay at least two loans on time under Huster Fund.
“The Hustlers Fund has won our hearts because of its design around financial discipline
“It is a loan that you have to have credentials in terms of credit rating to access, it forces you to have saving culture and it reaches the masses. The risk is being taken by the government,” Equity Group CEO James Mwangi said.
This comes a day after the bank reported a 26.6 growth in net profit for nine months through September.
In their report, the financial services group attributed the growth to increased earnings from interest and non-funded income streams.
Equity Bank’s profit after tax and minority interest hit Ksh 33.35 billion, a Ksh 7.1 billion increase from Ksh 26.34 billion in the same period last year.
The lender reported that earnings from lending rose to Ksh 59.84 billion, a 23.43 increment.
Meanwhile, non-interest income from transactions increased by 32.06 percent to Ksh 42.22 billion, while customer deposits went up by 15.07 percent to Ksh 1.007 trillion.
The bank’s loan book expanded 20.55 percent to Ksh 673.91 billion, while operating costs rose to Ksh 57.74 billion.