If you are a student in Kenya, you may have heard of the Higher Education Loans Board (HELB) loan. This is a government initiative that provides financial assistance to students who are pursuing higher education.
The loan is meant to help students pay for tuition fees, accommodation, and other expenses that come with being a student.
HELB provides different types of loans, including undergraduate loans, postgraduate loans, and TVET loans. The loans are available to students who meet the eligibility criteria.
To qualify for a HELB loan, you must be a Kenyan citizen, enrolled in an accredited institution of higher learning, and have a valid national ID.
HELB loans are disbursed in two installments per academic year. The first installment is usually disbursed at the beginning of the academic year, while the second installment is disbursed halfway through the academic year.
The loan is repayable after the completion of your studies, and the repayment period is ten years.
The amount of loan you qualify for depends on the program duration. For example, if you are pursuing a four-year program, you are eligible for a loan four times, while if you are pursuing a five-year program, you are eligible for a loan five times.
It is important to note that HELB loans attract interest, and you are required to pay a ledger fee and a penalty fee if you do not repay the loan on time.
Therefore, it is advisable to borrow only what you need and to repay the loan as soon as possible to avoid accumulating unnecessary interest and penalties.
Eligibility Criteria
To qualify for a HELB loan, you must meet certain eligibility criteria. This section will provide you with an overview of the eligibility requirements for a HELB loan.
Citizenship
To be eligible for a HELB loan, you must be a Kenyan citizen. Non-Kenyan citizens are not eligible for a HELB loan.
Academic Qualifications
You must have the necessary academic qualifications to be eligible for a HELB loan. This means that you must have completed your secondary education and obtained a minimum grade of C+ in the Kenya Certificate of Secondary Education (KCSE) examination.
Additionally, you must have been admitted to a recognized institution of higher learning in Kenya or East Africa.
Admission Status
You must have been admitted to a recognized institution of higher learning in Kenya or East Africa to be eligible for a HELB loan. This means that you must have received an admission letter from the institution you intend to attend.
Application Process
To apply for a HELB loan, you need to follow a few steps. The application process is straightforward, and you can complete it online. Here are the two main sub-sections of the application process:
Online Application
The first step is to register on the official HELB website at http://www.helb.co.ke. Once you have registered, you can log in to your account and fill out the First Time Undergraduate Loan Application Form (LAF) for the {year} academic year.
Make sure you read and understand the HELB Financial Literacy Guide before filling out the form.
The online application process is easy to follow, and you can save your progress and come back to it later if you need to. You will need to provide your personal information, including your National ID number or KCSE index number, as well as your parents’ details.
You will also need to provide information about your course, institution, and fees.
Submission of Documents
After completing the online application form, you will need to download and print the form. You will then need to sign it and attach the required documents before submitting it to the HELB offices at Anniversary Towers in Nairobi.
Some of the documents you will need to attach include:
- A copy of your National ID or Birth Certificate
- A copy of your KCSE result slip or certificate
- A copy of your admission letter to the institution
- A copy of your fee structure
- A signed declaration form from your guarantor
Make sure you submit your application form and supporting documents before the deadline to avoid any delays in processing your loan. The deadline for applications is usually communicated through the HELB website and other official channels.
Loan Disbursement
Once you have qualified for a HELB loan, the disbursement process begins. The disbursement process is the transfer of funds from HELB to your institution’s bank account. The process takes place in two phases: the first disbursement and the subsequent disbursements.
The first disbursement is made at the beginning of the academic year, and it is usually 40% of the total loan amount. The subsequent disbursements are made in two equal installments, one at the beginning of each semester.
HELB usually disburses the loan directly to the institution, and the institution then credits the student’s account. However, in some cases, the loan may be disbursed directly to the student’s bank account.
It is important to note that the loan disbursement process may take some time, and students are advised to be patient and not panic. It is advisable to keep in touch with your institution’s financial aid office to get updates on the disbursement process.
In case of any delays or issues with the disbursement process, students should contact HELB for assistance. It is also important to ensure that you have met all the requirements for loan disbursement, such as providing accurate and up-to-date information on the loan application form.
Loan Repayment
Once you have completed your studies and have started earning an income, you will need to start repaying your HELB loan. It is important to understand the repayment process and your obligations as a borrower to avoid defaulting on your loan.
HELB offers various repayment options to suit different financial situations. You can choose to make monthly, quarterly, or annual payments depending on what works best for you. You can also choose to make payments through various channels such as mobile money, bank deposits, or direct debits.
It is important to note that failure to make payments on time can lead to late payment penalties and accumulation of interest on your loan. Defaulting on your loan can also lead to legal action being taken against you and damage to your credit score.
To avoid defaulting on your loan, it is important to communicate with HELB if you are facing financial difficulties. HELB offers loan rescheduling and interest relief to borrowers who are unable to make payments due to unforeseen circumstances such as job loss or illness.
In addition, if you are employed in the public sector, your employer may be required to deduct loan repayments from your salary and remit them to HELB on your behalf. This is known as the check-off system and is designed to ensure timely loan repayments.
Penalties and Consequences
It is important to understand the penalties and consequences of defaulting on a HELB loan. If you fail to repay your loan on time, you will be charged penalties and interest on the outstanding balance.
HELB provides a grace period of one fiscal year. If you fail to repay your loan after the grace period, you will be charged a penalty of Kshs. 5,000 per month for each month not paid.
Moreover, you will be listed as a defaulter with the Credit Reference Bureau, which will affect your credit score and may hinder your ability to access loans from other financial institutions.
Additionally, HELB may take legal action against you to recover the outstanding balance, which may result in court fees and legal expenses. Furthermore, if you are a government employee, HELB may instruct your employer to deduct the outstanding balance from your salary.
If you are facing financial difficulties and are unable to repay your loan, it is important to contact HELB and discuss your situation. HELB may offer a repayment plan or a penalty waiver, depending on your circumstances. However, it is crucial to communicate with HELB and avoid defaulting on your loan.
Appeals and Disputes
If you feel that the amount awarded to you by HELB is insufficient or you were not awarded any loan at all, you can make an appeal to have your loan disbursement increased.
The appeal process allows you to request for a loan increment which would be considered in the next disbursement if successful.
To apply for a HELB loan appeal, follow the steps provided below:
- Log in to the HELB portal using your credentials.
- Click on the “Appeals” tab.
- Fill in the appeal form with the correct details.
- Submit the appeal form.
HELB loan appeal is open for students who were awarded zero (0) loans and would like to have HELB review their application. It is also open for students who would want to have their allocated loans increased.
It is important to note that not all appeals are successful. HELB considers various factors when reviewing an appeal, including the availability of funds and the applicant’s academic performance.
If your appeal is unsuccessful, you can still dispute the decision by following the dispute resolution process provided by HELB. The dispute resolution process involves submitting a written complaint to HELB, which will be reviewed and responded to within a specific period.
Frequently Asked Questions
What are the eligibility requirements for a HELB loan?
To qualify for a HELB loan, you must be a Kenyan citizen, enrolled in a recognized higher education institution, and have a valid admission letter. Additionally, you must have a National ID card, KRA PIN, and a bank account. You must also meet the minimum academic requirements set by HELB.
How do I apply for a HELB loan?
To apply for a HELB loan, you must first create an account on the HELB student portal. After creating an account, fill in the loan application form and attach all the required documents. Submit the application, and wait for a response from HELB.
What is the maximum amount I can receive from a HELB loan?
The maximum amount you can receive from a HELB loan depends on the level of study and the program you are enrolled in. For undergraduate students, the maximum amount is Kshs. 60,000 per year, while postgraduate students can receive up to Kshs. 200,000 per year.
What is the interest rate on a HELB loan?
The interest rate on a HELB loan is 4% per annum. However, the interest rate may be subject to change depending on the prevailing economic conditions.
What is the repayment period for a HELB loan?
The repayment period for a HELB loan is up to 12 years. However, the repayment period may be shorter for certain loan products, such as the Afya Elimu Fund loan.
Can I apply for subsequent HELB loans?
Yes, you can apply for subsequent HELB loans as long as you meet the eligibility requirements and have repaid any outstanding loans. However, the total amount of loans you can receive is subject to a limit set by HELB.
