Higher Education Loans Board (HELB) has announced a new deal for beneficiaries who are sinking into a penalty pitfall.
The Loans Board, through a statement shared on Monday, January 22, has set a penalty waiver for defaulters.
HELB announced that beneficiaries will get an 80 percent penalty waiver if they pay their loans in one lump sum.
The Penalty Relief Bonanza launched by HELB is expected to help beneficiaries clear their pending loan balances.
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"Are you in a penalty pitfall? Not anymore! Get relief of up to 80% off accumulated penalties when you pay your loan in one go! Don’t miss out on the biggest deal of the year!" HELB announced.
According to the HELB website, defaulters are penalised for every month they fail to pay their loans.
"You will be penalized. For each month that remains unpaid, you pay a fine of not less than five thousand shillings," HELB indicates.
The waiver is also expected to aid the board in collecting more money which is expected to help other students set to join institutions of higher learning starting this year.
To encourage uptake, HELB launched a new credit product with a limit of Ksh500,000. The new facility targets mainly civil servants looking to advance their education.
Applicants will receive up to Ksh500,000 a year with a repayment period of up to 72 months. The loan will be charged at 4 percent interest with no processing fee required.
