If you’re a Kenyan student looking for financial assistance to pay for your tertiary education, the Higher Education Loans Board (HELB) is a great option.
HELB provides loans and bursaries to students in need, with the maximum loan amount being Ksh60,000 as of October 2023 for undergraduates.
Masters and PhD students are awarded between Ksh. 60,000 – 200,000
The amount you can borrow is based on your financial need, which is determined by the HELB loan application process. The more you demonstrate that you need financial assistance, the higher the loan amount you can receive.
However, it’s important to note that not all students who apply for a loan will receive the maximum amount.
HELB also offers bursaries of up to Ksh8,000 to students who demonstrate financial need. Bursaries do not need to be repaid, unlike loans.
It’s worth noting that if you are self-sponsored, commonly known as “parallel programmes,” HELB doesn’t currently offer financial assistance. Additionally, the loan attracts interest of 4% p.a and must be repaid on completion of your studies.
HELB Loans
HELB loans are available to both undergraduate and postgraduate students, and the amount you can borrow depends on your level of need.
The minimum loan amount awarded is Ksh 37,000, while the maximum is Ksh 60,000. The loan attracts an interest rate of 4% p.a. and you are required to repay it after you complete your studies.
HELB also offers bursaries to students, which are non-repayable awards given based on financial need. The maximum bursary amount is Ksh 8,000, and it is usually awarded in addition to the loan amount.
To apply for a HELB loan or bursary, you need to visit the HELB website and create an account. You will then be required to fill in an application form and provide supporting documents, such as your national ID card, admission letter, and bank account details.
Always apply for a HELB loan or bursary at least one month before the opening date to allow ample time for processing. If you have any questions or concerns about HELB, you can contact them via email at [email protected] or by calling 0722052000.
Factors Influencing HELB Loan Amount
When applying for a HELB loan, the amount that you can be awarded depends on several factors. These factors include:
1. Type of Loan
HELB offers several types of loans, including undergraduate loans, postgraduate loans, and TVET loans. Each loan category has its own maximum loan limit.
For instance, as a first-time undergraduate student, you can receive a maximum of Ksh. 60,000 per year. On the other hand, postgraduate students can receive up to Ksh. 200,000 per year.
2. Financial Need
Your financial need is determined by a means test that assesses your family’s income, the number of dependents, and other factors. Students from low-income families are given priority in loan allocation.
The higher your financial need, the more likely you are to receive a higher loan amount.
3. Academic Performance
Your academic performance can also influence the loan amount you receive. Students with excellent academic records are more likely to receive higher loan amounts. HELB considers your academic performance in your previous academic year when allocating loans.
4. Loan Repayment History
If you have previously received a HELB loan, your repayment history can also influence the loan amount you receive. If you have a good repayment history, you are more likely to receive a higher loan amount.
5. Course of Study
The course of study you are pursuing can also influence the loan amount you receive. Some courses are considered more expensive than others, and therefore, students pursuing such courses may receive higher loan amounts.
Eligibility for Maximum HELB Loan Amount
To be eligible for the maximum HELB loan amount, you must meet certain requirements. Here are the eligibility criteria for the maximum HELB loan amount:
Level of Study
The maximum HELB loan amount varies depending on the level of study. Undergraduate students can receive a maximum loan amount of Ksh. 60,000 per year, while TVET students can receive up to Ksh. 40,000 per year. Masters and PhD students can receive a maximum loan amount of Ksh. 600,000 per year.
Financial Need
HELB loan amounts are awarded based on financial need. The loan application process includes a means test to determine your level of need.
Academic Performance
HELB loan amounts are also based on academic performance. Students must maintain a minimum cumulative grade point average (CGPA) of 2.5 to be eligible for a HELB loan. Students who fail to maintain this minimum CGPA may have their loan amount reduced or revoked.
Loan Repayment History
HELB loan amounts may also be affected by your loan repayment history. If you have a history of defaulting on loans, you may not be eligible for the maximum loan amount. If you have an outstanding HELB loan, your eligibility for a new loan may be affected.
HELB Loan Repayment Terms
After you have completed your studies, you will be required to start repaying your HELB loan. The repayment period starts one year after you complete your studies or after you secure employment, whichever comes first.
It is important to note that failure to repay your HELB loan on time will attract a penalty fee of 5% of the outstanding amount per month. This penalty is charged on the amount due and not on the total loan amount. Therefore, it is important to make your payments on time to avoid accruing penalties.
HELB offers several repayment methods to make it easier for you to repay your loan. You can choose to repay your loan through M-Pesa, bank deposit, or through your employer.
If you choose to repay your loan through your employer, the employer will deduct a certain amount from your salary every month and remit it to HELB.
If you have any difficulties repaying your loan, you can contact HELB for assistance. They offer loan restructuring and penalty waiver for those who are unable to repay their loans on time.
Keep track of your loan repayment and ensure that you make your payments on time. This will help you avoid penalties and also ensure that you maintain a good credit score.
Impact of Not Repaying HELB Loan
If you fail to repay your HELB loan, you will face several consequences. Here are some of the impacts of not repaying your HELB loan:
1. Accumulation of Interest
If you do not repay your HELB loan, the loan will continue to accrue interest, and the interest rate will increase. This means that you will end up paying more than the original loan amount.
2. Legal Action
If you default on your loan, the Higher Education Loans Board (HELB) may take legal action against you. This may include garnishing your wages, seizing your property, or taking legal action against you.
3. Negative Credit Report
If you do not repay your HELB loan, it will be reported to the credit bureaus. This will negatively impact your credit score, making it difficult for you to obtain other loans or credit in the future.
4. Inability to Access HELB Services
If you do not repay your HELB loan, you will not be able to access other HELB services, such as scholarships or bursaries. This will limit your opportunities for further education and career advancement.
5. Embarrassment and Shame
Defaulting on a loan can be embarrassing and shameful. It can also damage your reputation and make it difficult for you to obtain employment or other opportunities.
How to Apply for a HELB Loan
If you are a student in Kenya and need financial assistance to pursue your education, you can apply for a loan from the Higher Education Loans Board (HELB). Here are the steps to follow to apply for a HELB loan:
- Visit the HELB website or hef.co.ke to access the Student Portal and click on “register” to create an account.
- Confirm whether you have your National ID and enter your ID number. If you don’t have a National ID, enter your KCSE Index number.
- Fill in your personal details and contact information.
- Provide information about your family, including the names of your parents or guardians, their occupations, and their income.
- Indicate the level of education you are pursuing, the name of your institution, and the course you are taking.
- Provide information about your financial need, including your monthly expenses and any other sources of income or support.
- Upload the required documents, including your National ID, admission letter, bank details, and any other relevant documents.
- Submit your application and wait for feedback from HELB.
It is important to note that the maximum loan amount awarded by HELB depends on various factors, including the level of need, the cost of education, and the availability of funds. As of 2023, the maximum loan amount is Ksh 60,000 per year for undergraduate students.
If you are a first-time applicant, you should apply at least one month before the opening date to allow time for processing and remittance. The loan attracts an interest rate of 4% per annum, and you are required to repay the loan on completion of your studies.
Applying for a HELB loan can be a great way to finance your education and achieve your academic goals. Make sure to follow the application process carefully and provide accurate and complete information to increase your chances of success.
In Summary
To summarize, the maximum amount of HELB loan awarded to students is Ksh. 60,000, while the minimum is Ksh. 37,000. The loan attracts an interest rate of 4% p.a, and students are required to repay their loans on completion of their studies.
HELB loans are awarded based on the level of need and academic performance of the student. The loan can be used to cover tuition fees, accommodation, and other expenses related to education.
It is advisable to apply for the HELB loan at least one month before the opening date to allow ample time for processing. The loan application can be done online, but a dully filled form needs to be downloaded and signed.
It is important to note that these are the minimum loan amounts, and students may be awarded a higher loan amount depending on their financial need and academic performance. Students pursuing postgraduate studies can apply for higher loan amounts, with the maximum for a PhD loan being Ksh. 200,000 per year.
Frequently Asked Questions
What is the maximum amount of money one can receive from HELB?
The maximum amount of money one can receive from HELB is Ksh. 60,000 per academic year. A bursary amount of upto Ksh. 8,000 can also be awarded depending on the needs of the student.
Are there any restrictions on how the HELB loan can be used?
Yes, there are restrictions on how the HELB loan can be used. The loan can only be used for tuition fees, accommodation, and upkeep expenses while the student is studying. It cannot be used for any other purposes.
What is the process for applying for a HELB loan?
To apply for a HELB loan, you need to visit the HELB website and create an account. Once you have created an account, you will be able to fill out the loan application form and submit it online. You will also be required to provide supporting documents such as your national ID, admission letter, and academic transcripts.
How long does it take to receive a HELB loan?
The time it takes to receive a HELB loan varies depending on the processing time. However, once your loan application has been approved, it usually takes between 2-3 weeks for the funds to be disbursed to your account.
What are the eligibility requirements for receiving a HELB loan?
To be eligible for a HELB loan, you must be a Kenyan citizen, enrolled in a recognized institution of higher learning, and have a valid national ID. You must also have a guarantor who is either a parent or guardian, a permanent employee, or a person of means who can repay the loan in case the borrower is unable to do so.
Can a HELB loan be forgiven or discharged?
No, a HELB loan cannot be forgiven or discharged. You are required to repay the loan in full with interest accrued. Failure to repay the loan can result in legal action being taken against you.