Student’s loans in Kenya – What you need to know

What you should know about education loans

What you need to know about student loans is that they offer it to college students throughout their four years in college. The loan will cover the cost of their higher education tuition fee. There are also different modes and platforms of getting student loans in Kenya. These loans providers can be private or government instituted.

How do student loans help students?

The various ways student loans helps students include:

Student loans help students pay for college or sponsor their education

It helps fill financial gaps and provides essential funds to cover educational expenses.

It helps students get cash immediately by allowing their parents buy some time to get back on their feet and provide financing for other necessities

Student loans allow some funds to go into other expenses while letting you the student achieve the higher education they need and deserve

It supports students get a complete college experience that helps them secure high-paying jobs and growth positions in the workforce.

Helps build the student credit score and as young adults about to enter the real world, they will deal with things like credit score.

Types of students loans in Kenya

There are two different types of student loans in kenya. They are:

• Private students loans
• Government students loans

Government students’ loans

The government agencies offer this type of loan and often come with lower interest rates. In Kenya, there is a board set up by the government called the Higher Education Loans Board (HELB).

Private students’ loans

Private students’ loans are offered by individuals, online lenders and banks and even credit unions. It comes with a bit higher interest rate when compared with HELB. They can source it online or through the lender’s app.

Where to get school fees loans in Kenya

Students loan providers and boards in Kenya are:

• Higher Education Loans Board (HELB).
• KCB bank
• National Bank of Kenya
• Bank of Africa
• Musoni Educational loans
• Zidisha school fees
• Equity Bank

Higher Education Loans Board (HELB)

Higher Education Loans Board is a state-owned institution. HELB is the major provider for many accessed student loans in Kenya. They established it in 1995 and belong to the student loan board of Kenya.

In addition, it is regulated. We can also trace its track record back as a potential beneficiary in Kenya. Visit their website and see the requirements. It is the best platform for student loans in Kenya.

Features of HELB are:

• Interest rates are subsidized by the government to help more students for easy access and repayment.
• It is available and accessed before a new academic year begins.
• Students can access loans up to ksh. 50,000 and a bursary of ksh. 8000.

Note: You can check all your loan information on your status. Access all you need on the site when you sign in.

KCB Bank student loans

KCB is a commercial bank and widely known bank in Kenya. The KCB Masomo loan is for educational advancement and knowledge acquisition. Parents take the loan to educate their children. Salaried individuals who wish to further their education can take up KCB Masomo education loan.

Features:

• Borrowers can access up to ksh. 300,000 for education purposes.
• Loan process is quick and easy.
• KCB Masomo loans offer attractive interest rates for student loan schemes in Kenya.
• The maximum repayment duration is two years.

Requirements:

1. Have an account with KCB for about three months
2. Original copy of National ID or passport
3. Recent original payslips
4. Proof of income of self-employed
5. Admission letter from the university/college.

National Bank of Kenya

National banks offer unsecured loans. Anybody with a salary can access the unsecured loan, especially parents who want their children to further. The platform has consideration for Education.

Features:

• The minimum amount you can borrow for the unsecured personal loan is 50,000 and the amount can go up to ksh. 4,000,000.
• Flexible repayment options of up to 6 years.
• Interest rates vary based on customers and loan amount. Reducing balance method is used on interest calculations.

Bank of Africa (Soma loan)

The bank of Africa offers Soma loans. Students and parents can access Soma loans. The loan is available for all levels of education, both the primary, secondary and university. Visit their site to see their requirements.

Features:

• 15% fixed interest rate.
• You can access Soma loans on your mobile phone.
• You repay monthly through constant debits for 10 months.
• 1% appraisal fee is charged on loan application.

Some lenders disburse funds directly to your learning institutions.

Musoni educational loans

It is a Microfinance bank that gives students’ loans. You access loans through mobiles. Their offices are found  in interior parts of Kenya. Musoni branch is found in most towns in Kenya. Musoni is an acronym for M-Usoni meaning “Mobile future” which means using digital methods to integrate customers.

Features:

• They disburse loans within 72 hours
• It has an affordable interest rate.

 Zidisha School fees

This is an international lending community that offers students loans to citizens. Zidisha a crowdfunding platform. This means that if you need money for any project, like a business or education, you apply and request for money from lenders. In addition, Julie Kurnia established Zidisha. They are passionate about empowering and assisting individuals with various needs. Visit their website to access their requirements.

Equity bank

They designate equity loans for education, including supporting students and salaried customers with loans to meet their needs and advance in life. In addition, they give wonderful privileges for the best-performing students from different towns in Kenya. Finally, they allow outstanding students to save some money to aid them in entering college.

Requirements:

1. Pay slip
2. Identification documents
3. Employment letter.

Note: Visit their website to check out more insight.