HELB to waive penalties to defaulters
15 May 2013, 15:43
HELB is offering a penalty waiver to all university loanees.
The Board offers study loans to all needy students in both private and public universities. Loans are awarded at the beginning of every financial year depending on merit.
In the past, beneficiaries defaulted in payment of their study loans, something that saw the Board take tough measures against defaulters.
In order to ensure that beneficiaries clear their loans immediately, the Board partnered with KRA. In 2009, all loan applicants were required to provide their PIN numbers to facilitate monitoring of defaulters.
However, this did not bear much fruit and the Board decided to impose fines on all defaulters.
Graduates were given a grace period of one financial year to start remitting their payments after the maturity of their loans, failure of which they attracted penalties of KES 5 000 per month.
This was regardless of whether one was employed or not. Self employed and unemployed loanees were given the opportunity to pay as little as KES 1 000 per month through M-Pesa.
Early this month, the Board introduced a one-month waiver on all loanees.
The waiver advert sent to individual loanee email accounts stated: “The Board shall waive all penalties for any individual loanee who will pay his/her outstanding loan in lump sum.”
The amnesty is expected to run till June 6, 2013.
- News24 Kenya