Major Differences Between Hustler Fund and Fuliza

President William Ruto launched the Financial Inclusion Fund, popularly known as the Hustler Fund on Wednesday, November 30.

The fund emerged as the most popular affirmative action fund under Ruto’s administration thanks to criticism from the opposition and its anticipation.

While over 1.14 million Kenyans have since registered for the fund and over Ksh 408 million disbursed, a section of Kenyans are yet to understand how Hustlers Fund work.

Many of these Kenyans have likened the money lending project to Safaricom’s Fuliza which is not true.

So what’s the difference between Hustlers Fund and Fuliza? Here’s how WoK distinguished the two.

Hustlers Fund targets small scale traders, mama mboga and individuals while Fuliza allows customers to complete M-PESA transactions with insufficient funds in their M-PESA wallet.

The Hustler Fund amount limit is determined by the application’s credit score while Fuliza relies on the borrower’s M-PESA transactions and does not consider one’s CRB status.

At the same time, Fuliza is available to Safaricom subscribers only and who have been active for six months while Hustler Fund is eligible for borrowers with an active sim card for over 90 days from Safaricom, Airtel or Telkom.

Fuliza charges an interest of 1 percent access fee, a daily maintenance fee and a 20 percent excise fee while the Hustler Fund only charges an interest rate of 8 percent per annum (0.02% per day).

Fuliza has a specific limit for each borrower and allows one to borrow until the allocated limit is finished, but the Hustler Fund allows an eligible person to borrow the whole limit at once.

Elsewhere, the Huster Fund interest is adjusted to 9.5% if a borrower fails to repay within 14 days and the account frozen if the loan is not cleared by 30th, but with Fuliza, the M-PESA account is not deactivated.

How to register for Hustler Fund

• Dial USSD code *254# which will lead you to a menu or use the mobile application.
• Accept the Terms and Conditions.
• Enter M-PESA, Airtel Money of T-Kash pin.
• Receive an SMS notification of a successful registration and the limit assignment.

How to apply for a Hustler Fund loan

• Dial USSD code *USSD code# or open the mobile application. 
• Select the loan request option to view the limit, interest, and loan tenure.
• Enter the loan amount.
• Confirm loan details as displayed.
• Enter M-PESA, Airtel Money of T-Kash pin.
• Receive an SMS notification on loan allocation with relevant loan information.

After a successful loan application, the money will be disbursed to the mobile money account with 95% of the money deposited to the mobile money wallet and the remaining 5% deposited to the savings account scheme of the Hustler Fund.