How to Apply for a Hustler Fund Loan

How to Apply for a Hustler Fund Loan

For many aspiring entrepreneurs and small business owners in Kenya, access to funding remains a major obstacle. Traditional bank loans often require security or collateral, which most small traders or side hustlers don’t have. But did you know you can now get a business loan in Kenya without collateral — legally, conveniently, and fast?

Thanks to new digital solutions and government-backed programs like the Hustler Fund, accessing small business loans without security is now possible for millions of Kenyans.

Who Needs a Collateral-Free Loan in Kenya?

You may need this type of loan if:

• You’re a mama mboga, boda boda rider, or online hustler
• You run a small kiosk or Jua Kali workshop
• You’re starting a business with little savings
• You want to boost inventory or cash flow but don’t own property

1. What is the Hustler Fund?

The Hustler Fund is a Kenyan government-backed financing initiative launched in 2022 to help ordinary Kenyans access affordable credit — especially those without bank accounts, payslips, or security.

It targets:

• Small businesses
• Informal traders
• Youth and women
• Startups and side hustlers

Key Features:

• Loan amounts start from KSh 500 to KSh 50,000
• No collateral required
• Low interest rate: 8% per annum (pro-rated daily)
• Paid directly to your mobile wallet (MPESA or Airtel Money)

2. How to Apply for a Hustler Fund Loan (Step-by-Step)

Step 1: Ensure You Have a Mobile Money Wallet

• MPESA (Safaricom)
• Airtel Money
• Telkom T-Kash

Must be active for at least 90 days.

Step 2: Dial the USSD Code

• Dial *254# on your phone
• Select “Hustler Fund” from the menu

Alternatively, access it via the MPESA app or Airtel Money menu.

Step 3: Register

• Accept the terms and conditions
• You’ll receive an SMS confirmation

Step 4: Request Loan

• Select loan amount (based on your limit)
• Funds are sent instantly to your mobile wallet
• 5% of the loan goes into your savings wallet automatically

Step 5: Repay on Time

• You have 14 days to repay
• On-time repayment helps increase your loan limit

Note: Missed payments may lower your score or disqualify you from future loans.

How to Apply for a Hustler Fund Loan: How Wanjiku Used Hustler Fund

Wanjiku runs a small chips kiosk in Umoja, Nairobi. She needed KSh 3,000 to restock cooking oil and potatoes. She applied via *254#, got KSh 2,800 (after savings cut), and repaid in 10 days. Her next limit rose to KSh 4,500.

3. Other Ways to Get Business Loans Without Collateral in Kenya

While Hustler Fund is great, it’s not the only option. Here are alternative collateral-free loans in Kenya:

a) Tala

• Loan amounts: KSh 500 – 50,000
• No security required
• Interest: 7% to 19% (based on repayment history)
• App-based (Android)

b) Branch

• Offers business and emergency loans
• No paperwork or guarantors
• Fast approval and disbursement

c) KCB MPESA & M-Shwari (via Safaricom)

• Available via MPESA app
• Short-term loans with competitive interest
• Loan limits grow based on savings and repayment history

d) Pezesha (for SMEs and partnerships)

• Targets small businesses in need of working capital
• Partnered with e-commerce platforms like Jumia
• Loans up to KSh 100,000 for qualified sellers

Tips to Improve Your Loan Limit (Without Collateral)

1. Repay on Time: Timely repayment shows you’re creditworthy
2. Transact Regularly: Use MPESA or Airtel Money often
3. Keep Accurate Records: Use notebooks or apps to track income/expenses
4. Increase Digital Visibility: List your business on Google, Facebook, or Jiji
5. Join SACCOs or Chamas: Helps build savings history for larger loans later

Is It Safe to Get Loans Without Collateral in Kenya?

Yes — but only if you:

• Use verified platforms (avoid shady loan apps)
• Read all terms and conditions
• Confirm interest rates and repayment timelines
• Avoid borrowing from multiple lenders at once

Final Thoughts

Getting a business loan in Kenya without collateral is no longer a dream — it’s a reality, thanks to the Hustler Fund and digital finance solutions. Whether you’re a side hustler, small trader, or aspiring entrepreneur, you don’t need land or a title deed to access affordable capital.

Start small, borrow smart, and build your business step by step.