HELB loan is a financial aid program offered by the Higher Education Loans Board (HELB) in Kenya to help students who are unable to finance their education.
The loan is designed to help students pay for tuition fees, accommodation, and other related expenses while pursuing their higher education.
The HELB loan is available to both undergraduate and postgraduate students who are enrolled in accredited universities and colleges in Kenya. The loan is repayable after the completion of studies, and the interest rate is relatively low compared to other commercial loans.
Importance of HELB Loan
The HELB loan is an essential financial aid program that helps thousands of students in Kenya to pursue their higher education dreams. Here are some of the reasons why the HELB loan is crucial:
- Access to education: The HELB loan provides students with the financial resources they need to access quality education in Kenya. This loan helps students who would otherwise be unable to afford higher education to access it.
- Low-interest rates: The HELB loan has a low-interest rate compared to other commercial loans, making it affordable and accessible to many students.
- Flexible repayment terms: The HELB loan has flexible repayment terms that allow students to repay the loan after completing their studies. The repayment period is usually ten years, giving students enough time to secure employment and start repaying the loan.
- Builds credit history: The HELB loan helps students to build their credit history, which is essential for future financial transactions such as applying for a mortgage or a car loan.
Eligibility Criteria for HELB Loan
To be eligible for a HELB loan, you must meet the following requirements:
- Enrollment in a Recognized Institution: You must be enrolled in a recognized institution of higher learning within East Africa that is recognized by the Ministry of Higher Education. This means that people who are not in higher learning cannot apply for HELB.
- Citizenship: You must be a Kenyan citizen or a Kenyan resident.
- Good Academic Standing: You must have a good academic standing and maintain a minimum cumulative GPA of 2.5.
- Financial Need: You must demonstrate a financial need for the loan. This means that you must not be able to afford the cost of education without the loan.
- Loan Type: There are two types of undergraduate loan applications: First Time Application and Subsequent Loan Application. First Time Application is for applicants who are applying for the first time, while Subsequent Loan Application is for applicants who have already received a HELB loan.
- Loan Limits: The loan amount you can receive depends on the cost of education and the loan limits set by HELB. The maximum loan amount for undergraduate students is Kshs. 60,000 per year.
- Application Deadline: You must apply for the loan at least one month before the opening date to allow ample time for processing.
By meeting these eligibility criteria, you can apply for a HELB loan and receive financial assistance to support your education.
Documents Required for HELB Loan Application
When applying for a HELB loan, you need to provide several documents to prove your eligibility and help the board make informed decisions. Here are the documents you need to have:
- A copy of your national identification card (ID) or passport. This is to prove your identity and citizenship.
- Copies of your parents’ national identification cards or death certificates if your parents are deceased. This is to prove your dependency status and help determine your loan eligibility.
- Copies of your guarantors’ national identification cards. Guarantors are people who agree to repay your loan if you fail to do so. You need to have two guarantors who are not your parents or siblings.
- A valid bank account. This is where the loan will be disbursed.
- Your Kenya Revenue Authority (KRA) Personal Identification Number (PIN). This is to verify your tax compliance status.
- A recent colored passport size photograph. This is to help identify you and for record-keeping purposes.
- A signed loan application form. This is the official document that shows your intention to apply for the loan and your agreement to the terms and conditions of the loan.
- A copy of your admission letter or student ID card. This is to prove that you are a registered student in a recognized institution of higher learning.
Steps to Apply for HELB Loan
If you are a first-time applicant for the HELB loan, you need to follow a few simple steps to apply. In this section, we will guide you through the process of applying for a HELB loan.
Registration Process
The first step is to register on the HELB portal. Here’s how you can do it:
- Open a web browser on an internet-enabled device, preferably a computer.
- Visit the HELB loan portal at http://www.helb.co.ke.
- Click on the “Register” button and enter the required information.
- Click on “Sign Up.”
- An activation link will be sent to your email address. Click on the link to activate your account.
Filling the Application Form
After registering, you can proceed to fill the HELB loan application form. Here’s how you can do it:
- Log in to your account on the HELB portal.
- Navigate to “Loan Application” and click on the “{year} First Time Undergraduate Loan Application Form (LAF)” link.
- Read and evaluate your financial literacy online and understand the purpose of credit.
- Access the loan application form and fill it out completely.
- Make sure you have all the necessary documents, including a copy of your national ID card, admission letter, fee structure, and bank account details.
- Print two copies of the filled loan application form.
Submission of Application
Once you have filled out the loan application form, you need to submit it to the relevant authorities. Here’s how you can do it:
- Sign both copies of the loan application form.
- Submit one copy to the financial aid office of your institution.
- Keep the other copy for your records.
That’s it! You have successfully applied for a HELB loan. The application process may take some time, so be patient and keep checking your account on the HELB portal for updates.
Loan Disbursement and Repayment
How is the Loan Disbursed?
After your loan application is approved, the Higher Education Loans Board (HELB) disburses the funds directly to the school account for tuition fees and to your personal bank account for upkeep funds.
It is important to ensure that your bank account number is active and that you have provided the correct details to avoid any delays in disbursement.
Repayment Process
Repayment of the HELB loan begins one year after completing your studies or six months after securing employment, whichever comes first.
The repayment period is ten years, and the interest rate is 4% per annum. The repayment amount is calculated based on the amount borrowed and the repayment period.
You can make your repayments through various channels, including bank deposits, mobile money, and direct debit. It is important to note that failure to repay your loan on time may result in legal action, and you may be blacklisted by the Credit Reference Bureau (CRB).
To avoid any issues with repayment, it is important to keep track of your loan balance, make timely payments, and communicate with HELB in case of any challenges. You can also apply for loan consolidation or restructuring if you are unable to make your payments on time.
Here are some key points to keep in mind for the repayment process:
- Repayment begins one year after completing your studies or six months after securing employment, whichever comes first.
- The repayment period is ten years, and the interest rate is 4% per annum.
- Repayment amount is calculated based on the amount borrowed and the repayment period.
- Repayments can be made through various channels, including bank deposits, mobile money, and direct debit.
- Failure to repay your loan on time may result in legal action, and you may be blacklisted by the Credit Reference Bureau (CRB).
- You can apply for loan consolidation or restructuring if you are unable to make your payments on time.
Common Mistakes to Avoid When Applying for HELB Loan
When applying for a HELB loan, there are several mistakes that you should avoid to increase your chances of getting approved. Here are some of the common mistakes that you should steer clear of:
1. Incomplete or Incorrect Information
One of the most common mistakes that students make when applying for HELB loans is providing incomplete or incorrect information. Ensure that you fill in all the required fields accurately to avoid having your application rejected or delayed.
2. Late Application
HELB loans have specific deadlines for application submission. Submitting your application past the deadline can lead to automatic disqualification. Therefore, ensure that you apply for the loan within the specified period to avoid missing out.
3. Failure to Meet the Eligibility Criteria
HELB loans have specific eligibility criteria that applicants must meet to qualify for the loan. Ensure that you meet all the requirements before submitting your application to avoid rejection.
4. Failure to Repay Previous Loans
HELB loans are repayable, and failure to repay previous loans can lead to automatic disqualification of your loan application. Ensure that you have cleared any outstanding loans before applying for a new one.
5. Incomplete Supporting Documents
HELB loans require supporting documents such as bank statements, national ID, and KRA PIN. Ensure that you provide all the necessary documents to avoid rejection.
By avoiding these common mistakes, you increase your chances of getting approved for a HELB loan. Ensure that you read and understand the application requirements before submitting your application.
In Summary
To apply for a HELB loan, you need to follow a few simple steps. First, you need to visit the official HELB portal at http://www.helb.co.ke to register.
Once you have registered, you will need to read and completely fill out the HELB Financial Literacy guide. This guide will help you understand the terms and conditions of the loan, as well as your responsibilities as a borrower.
After you have read the guide, you can log into your account and click on the First Time Undergraduate Loan Application Link. From there, you will need to select and duly fill in the {year} First Time Undergraduate Loan Application Form (LAF).
Make sure that you fill out the form completely and accurately, as any errors or omissions could delay your application.
Once you have submitted your application, HELB will review it and determine whether you are eligible for a loan. If you are approved, you will receive a notification from HELB with details about your loan, including the amount you are eligible to borrow and the terms and conditions of the loan.
Remember, taking out a HELB loan is a serious responsibility, and you should only borrow what you need and can afford to repay.
Be sure to read and understand the terms and conditions of the loan before you sign the loan agreement, and make sure that you have a plan in place for repaying the loan after you graduate.
With careful planning and responsible borrowing, a HELB loan can help you achieve your dreams of higher education.
Frequently Asked Questions
What are the requirements for applying for a HELB loan?
To apply for a HELB loan, you must be a Kenyan citizen, have a valid national ID, and be enrolled in a recognized institution of higher learning. You must also meet the minimum academic requirements set by HELB.
How do I access the HELB application portal?
To access the HELB application portal, visit the official HELB website and click on the “Student Portal” link. You will be prompted to create an account and fill in your personal and academic details.
What is the deadline for submitting a HELB loan application?
The deadline for submitting a HELB loan application varies depending on the academic year. It is advisable to check the HELB website for the latest updates on application deadlines.
Can I apply for a HELB loan if I’m a first-time applicant?
Yes, first-time applicants are eligible to apply for a HELB loan. However, they must meet the minimum academic requirements and provide all the necessary documentation.
What is the process for filling out the HELB loan application form?
To fill out the HELB loan application form, you must first create an account on the HELB website. Once you have created an account, you will be prompted to fill in your personal and academic details. You will also be required to provide supporting documentation, such as a copy of your national ID and academic transcripts.
Is the HELB loan application open for the 2023-2024 academic year?
As of the current date, the HELB loan application for the 2023-2024 academic year has not yet opened. It is advisable to check the HELB website for updates on when the application will be open.
