Hustler Fund is a loan program aimed at supporting Kenyan youths who have innovative ideas or are engaged in productive economic activities. The loan attracts a low-interest rate and a repayment period of 3 years. It is essential to repay the loan on time since it comes with several benefits that could help improve your financial well-being.
Now, this is why you should repay your hustler fund on time.
Avoid Late Payment Penalties
Repaying your hustler fund loan on time helps you avoid late payment penalties. The loan attracts an interest rate of 6% per annum, with a grace period of 12 months. Late payment penalties apply to any amount of the loan that is overdue at the end of the grace period. The penalty is calculated at the rate of 2% per month on the outstanding amount. Therefore, repaying your loan on time helps you avoid these hefty penalties, which can negatively impact your credit score.
Build Your Credit Score
By paying back your Hustling Fund loan on time, you can improve your credit score. To determine whether you qualify for loans and other credit facilities, lenders consider your credit score, a numerical evaluation of your trustworthiness.
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By repaying your bill on time, you demonstrate that you are a trustworthy borrower, which can raise your credit score. Your ability to access better credit options and lower interest rates depends on your credit score, which could make it simpler for you to reach your financial objectives.
Access to More Credit Facilities
Repaying your hustler fund loan on time could give you access to more credit facilities. When you have a good repayment history, lenders are more likely to trust you with larger loan amounts, and you are more likely to receive favorable loan terms. Therefore, repaying your loan on time not only helps you avoid late payment penalties, but it also opens up more opportunities for you to access credit facilities.
Reduced Stress Levels
Repaying your hustler fund loan on time can help reduce your stress levels. Late payment penalties and the risk of defaulting on your loan can be stressful and overwhelming. Repaying your loan on time gives you peace of mind, knowing that you are meeting your financial obligations and that you are on track to achieving your financial goals.
Better Financial Planning
Repaying your hustler fund loan on time can help you plan your finances better. Timely repayment of your loan allows you to budget for your loan repayments and ensure that you have enough money to cover other expenses. Additionally, repaying your loan on time frees up your income, allowing you to invest in other income-generating ventures or save for other financial goals.
Improved Relationship with Lenders
Your relationship with the lenders can be enhanced by making timely repayments of your hustling fund loan. Your lender will be more likely to provide you with better loan conditions in the future if you make on-time loan repayments. A solid payback record might also help you in your negotiations for more favorable loan terms and circumstances.
Improved Chances of Loan Approval
Repaying your hustler fund loan on time can improve your chances of loan approval in the future. Lenders consider your repayment history when assessing your eligibility for a loan. Therefore, a good repayment history could make you more attractive to lenders, making it easier for you to secure a loan in the future.
Repaying your hustler fund loan on time is an essential practice that could positively impact your financial wellbeing. It helps you avoid late payment penalties, build your credit score, access more credit facilities, reduce stress levels, plan your finances better, improve your relationship with lenders, and improve your chances of loan approval. Therefore, it's important to ensure that you repay your loan on time to enjoy these benefits. Additionally, you can seek professional advice
