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Why it is important to repay your HELB loan.


Date Posted: 9/19/2012 12:31:31 AM

Posted By: ombaba  Membership Level: Gold  Total Points: 1110

Many students who go through university education in kenya are beneficiaries of the government's student loan program, through the higher education loans board, infamously referred to as 'chacha'. Its is a program that has been of great help to many who would otherwise not afford university education. If you are one of the beneficiaries, you should start repaying your loan as soon as you can. Here is why;

Apart from the moral obligation that you benefited and should consider others who might be in need just like you were, Helb has introduced a raft of measures to curb defaulters.

One year after graduation helb begins to charge a penalty of kshs 5000 per month if you do not begin paying. Even though you might not have gotten a job yet, helb argues that a graduate cannot miss something to do to generate a little cash. Helb accepts payment of as little as kshs 500 per month if you don't have a job. This will show your commitment to pay and thus they will not charge you the penality.

Nowadays before you are extended a loan by helb you need to provide your PIN number. With that they can track you should you choose to abscond your duty.

If it the worse comes to the worst, they will forward your name to a credit reference bureau. What that means is you are of low credit worth and you won't get a loan from any financial institution worth its salt. Trust me you don't want to get there. So my advice is please pay your helb loan soon.

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