If you have taken out a loan from the Higher Education Loans Board (HELB), you are required to make monthly repayments until the loan is fully paid. One of the most frequently asked questions about HELB is, “What is the minimum amount for HELB payment?”
The minimum amount that HELB has set for those who are unemployed is Kshs. 1,500. It is important to note that the Kshs. 1,500 is payable by 15th of every month and not later.
Failure to make the payment on time will result in penalties. The board works in collaboration with Credit Reference Bureau (CRB) for this reason, default on loan will draw a blacklist from the Bureau.
To make it easier for you to pay your HELB loan, the board has provided various repayment methods. According to HELB, some of the local repayment methods include:
- Mobile Payment Services: M-PESA
- Money Transfer
- Bank Deposit
- Direct Debit
- Cheque Payment
How to Make HELB Payment
If you have taken a loan from Higher Education Loans Board (HELB), you need to repay it on time to avoid penalties. Here are the ways you can make your HELB payment.
Online Payment
You can make your HELB payment online using the HELB portal. Here are the steps to follow:
- Log in to the HELB portal using your credentials.
- Click on “Make Payment” on the dashboard.
- Select the loan you want to repay.
- Enter the amount you want to pay.
- Choose your preferred payment method.
- Enter your payment details and confirm the payment.
Paybill Number
You can also make your HELB payment through M-PESA using the HELB Paybill number. Here are the steps to follow:
- Go to the M-PESA menu on your phone.
- Select “Lipa na M-PESA.”
- Select “Paybill.”
- Enter the HELB Paybill number: 200800.
- Enter your National ID number as the account number.
- Enter the amount you want to pay.
- Enter your M-PESA PIN and confirm the payment.
Bank Payment
You can also make your HELB payment through a bank. Here are the steps to follow:
- Visit any bank that is a HELB collection partner.
- Fill in the HELB deposit slip with your details.
- Submit the deposit slip and the payment to the bank teller.
- The payment will be processed and reflected in your HELB account within 48 hours.
Make sure to make your HELB payment on time to avoid penalties and maintain a good credit score.
HELB Loans
If you are a student in Kenya, you may have heard of the Higher Education Loans Board (HELB). HELB provides loans to students in higher secondary education, including undergraduate, master’s and PhD students.
The loans are intended to help students pay for their tuition fees, accommodation, and other expenses related to their education.
HELB loans are repayable after the student completes their studies. The repayment period is usually ten years, and the amount to be paid depends on the loan amount, the interest rate, and the repayment period.
It’s essential to note that failure to repay the HELB loan attracts penalties. Moreover, HELB works in collaboration with Credit Reference Bureau (CRB), and defaulting on a loan will draw a blacklist from the Bureau.
Factors Affecting HELB Payment
When it comes to repaying your Higher Education Loans Board (HELB) loan, there are several factors that can affect the minimum amount you need to pay. Here are some of the most important ones:
Loan Amount
The amount of your loan is one of the biggest factors that will affect your minimum repayment amount. Generally, the more you borrowed, the more you will need to pay back each month. It’s important to keep this in mind when you’re deciding how much to borrow in the first place.
Interest Rates
HELB loans accrue interest at rate of 4% per year which means that the longer you take to repay your loan, the more interest you will have to pay. If the loan repains unpaid, it attracts a penalty of Ksh. 5,000 per month.
Repayment Plan
Your repayment plan is another important factor that will affect your minimum payment amount. There are several different repayment plans available, each with its own minimum payment amount.
Some plans may allow you to pay less each month, but will extend the length of your repayment period, while others may require you to pay more each month, but will allow you to repay your loan more quickly.
Employment Status
Your employment status can also affect your minimum payment amount. If you are employed, you may be required to make a minimum payment each month, based on your income. If you are unemployed or underemployed, you will be required to pay Ksh.1,500 per month.
Consequences of Non-Payment
If you fail to make your HELB payments, there are several consequences that you may face. Here are some of the most common:
- Late payment fees: If you miss your payment deadline, you will be charged a late payment fee. According to Tuko News, the minimum penalty for defaulting on your HELB payment is Kshs.5,000 per month.
- Penalties and interest: If you continue to miss payments, you will accrue penalties and interest on your loan balance. If the loan is unpaid for 1 year, you will be charged a KES 60,000 annual penalty, in addition to the KES 1,000 annual ledger fees.
- Damage to your credit score: Failure to make your HELB payments can damage your credit score. This can make it difficult for you to obtain loans, credit cards, and other forms of credit in the future.
- Legal action: If you continue to miss payments, HELB may take legal action against you. This can result in wage garnishment, property liens, and other legal consequences.
HELB Payment Plan Options
The minimum payment plan requires you to pay a minimum amount each month which is Ksh. 1,500 if you are unemployed. It’s important to note that the Kshs 1500 is payable by 15th of every month and not later.
Tips for Managing HELB Payment
Managing your HELB payment can be challenging, but with the right approach, you can make it easier. Here are some tips to help you manage your HELB payment:
- Create a budget: Start by creating a budget that includes your HELB payment. This will help you keep track of your expenses and ensure that you have enough money to make your payment each month.
- Set up automatic payments: Consider setting up automatic payments for your HELB loan. This will ensure that you never miss a payment and will help you avoid late fees.
- Pay more than the minimum: If you can afford it, consider paying more than the minimum amount due each month. This will help you pay off your loan faster and save money on interest in the long run.
- Apply for a deferment or forbearance: If you are struggling to make your HELB payment, you may be eligible for a deferment or forbearance. These programs allow you to temporarily postpone or reduce your payments.
- Stay in touch with HELB: If you are having trouble making your payments, don’t be afraid to reach out to HELB for help. They may be able to offer you alternative repayment options or other forms of assistance.
Frequently Asked Questions
What is the minimum amount I can pay for my HELB loan?
The minimum amount that HELB has set for those who are unemployed is Kshs. 1,500. It is important to note that the Kshs 1500 is payable by 15th of every month and not later.
The board works in collaboration with Credit Reference Bureau (CRB) for this reason, default on loan will draw a blacklist from the Bureau.
How much of my salary will HELB deduct for loan repayment?
HELB loan repayment is based on a monthly deduction of 4% of the gross salary. The minimum monthly repayment amount is Kshs. 1,500
What is the process for repaying my HELB loan?
HELB loan repayment can be done through various modes such as bank deposits, mobile banking, and direct debit. You can also make payments from abroad through SWIFT or telegraphic transfer.
How do I calculate the amount of HELB waiver I am eligible for?
HELB offers waivers to loanees who are unable to pay their loans due to various reasons such as unemployment, death, or disability. The amount of waiver you are eligible for will depend on various factors such as the reason for the waiver and the amount of loan you have already repaid. To calculate the amount of waiver you are eligible for, you can contact HELB directly.
How can I check my HELB loan balance?
You can check your HELB loan balance by logging into your HELB account through the HELB portal. Alternatively, you can contact HELB customer care through their hotline number or email.
What are the consequences of not paying my HELB loan on time?
Failure to repay your HELB loan on time will result in penalties and interest charges. HELB also works in collaboration with Credit Reference Bureau (CRB) to blacklist defaulters. This means that defaulting on your HELB loan will negatively affect your credit score and make it difficult for you to access credit in the future.
