Helb financial literacy guide
Helb financial literacy guide

Are you applying for Helb loan and you have been required to answer the Helb financial literacy questions? Well. We have you covered. Here are all the required answers.

HELB FINANCIAL LITERACY GUIDE

Q. What is a loan?

Ans. A loan is a sum of money borrowed to be repaid with interests as per terms and conditions.

Q. Who qualifies to apply for a HELB loan?

Ans.

One can access HELB loan for studies as a government sponsored or privately sponsored student in a recognized institution of Higher Learning.

A student is eligible for HELB loan at any stage of their academic program.

Q. I am below 18 years, Can I access HELB Loan

Ans. HELB loan is a legally binding agreement between HELB and the applicant therefore until you attain the age of 18 years you cannot apply for the loan. Please note, you cannot use another person’s National ID to apply for the loan because it is illegal and a criminal offense.

Q. How do I get the HELB loan?

Ans. If in need of the loan, you MUST apply and submit a loan application every year for the course duration regardless of whether the previous application was successful or not. Q. What happens if I am unsatisfied with my loan award? Ans. You may also appeal/ request for review of your loan award if you were not satisfied with previous award. This includes unsuccessful applications.

Q. Must I apply for the HELB loan? Ans. It is not mandatory for one to apply for the HELB loan. Only apply for the loan if you need financial assistance during your studies.

Q. How much is charged as loan Interest?

Ans. HELB offers Undergraduate direct entry, TVET and Afya Elimu loans which are repayable at an interest rate of 4% p.

B. LOAN REPAYMENT

Q. When is the loan due for repayment?

Ans. The loan shall be due for repayment one year after completion of the course studied or within such period as the board may decide to recall the loan. When the loan falls due for repayment, obligation to repay shall not be extinguished or suspended by the economic status or condition of the loanee.

Loan repayment can be made directly by the loanee.

Jielimishe Loan repayments fall due one month (30 days) after disbursement.

Q. Does HELB notify me upon completion of loan? Ans. Upon completion of loan repayment, a clearance certificate is issued.

Q. What if I need a certificate and haven’t cleared the loan? Ans. A compliance certificate is issued to beneficiaries who have fulfilled their obligation towards the loan as provided by law. This can be accessed on helb.co

Q. A loaneee has the following obligations;

Ans. within a year of completion of his/her studies or within such period as the Board decides to recall its loan whichever is the earlier the loanee should: (a) inform the Board of his/her current contact contacts (b) begin repayment of his/her loan together with any interest and fees accrued thereon; (c) if he/she is in formal employment, to authorize his/her employer to deduct the loan repayment and to remit it to the Board in such a manner as the Board may direct.

Q. What are benefits of prompt repayment

Ans. You will build a good credit history for yourself. This will improve your credit score and positively impact your future borrowing power. You will also be eligible for a Post-Graduate loan from HELB if you are servicing your under-graduate loan. By paying promptly, you avoid attracting penalties and paying much more in the end.

It is the amount of money borrowed from a lender.

INTEREST

It is a fee charged on the amount borrowed. The fee is expressed as an annual percentage of the principal. The fee(interest) can be fixed or variable_._

GUARANTORS A guarantor is someone who <guarantees= someone else's loan or credit contract

i. promises to assist track /put pressure on the loanee or repay a debt if the borrower can't or won't. This is usually because the lender is concerned about the person's ability to keep up their loan repayments.

Q. Who can be a guarantor?

Ans. Almost anyone can be a guarantor. To be a guarantor, one need to be over

18 years old, with a good credit history and financial stability

Q. Can I withdraw my guarantee?

Ans. Unfortunately, if you have signed the loan agreement and the loan has been

successfully paid out, you cannot stop being someone's guarantor. Nonetheless, the Board can consider accepting change of guarantor if the loanee and the guarantor bring forth a replacement guarantor usually within less than one year after the initial loan has been issued.

IDENTITY THEFT One of the most prevalent forms of consumer fraud is identity theft. This occurs when personal information is used by an individual who is not authorized to possess or use the information. Examples include the illegal acquisition of a credit card or bank account number.

Q. WHAT IS INSURANCE?

Ans. Insurance is paying in advance for protection from unexpected or accidental loss or damage of an asset or a death or injury of a person. It is basically setting up a contract to help reduce the financial impact and to protect oneself from some type of loss.

Section 6 of the HELB Act states that the Board can take out insurance cover for risky loans such as death, incapacity or inability to pay, as the Board deems fit.

Starting from the 2019/2020 academic year first time undergraduate and TVET loan beneficiaries are eligible for enrolment into the Student Loans Self Protection scheme described herein as follows;

Q. What is a Student Loans Self Protection Scheme (SLSPS)?

Ans. This is a protection plan that covers the portion of an outstanding loan balance for a performing loan in the case of a mature loan and the full loan balance in the case of a non-mature loan in the unfortunate event of death of a loan beneficiary. This works like credit life in insurance.

Jielimishe loan beneficiaries are covered for the outstanding loan liability in case of death or permanent and total incapacitation.

CREDIT SCORE

It is a rating computed by credit reference bureaus based on information available on your credit report. Individuals with good credit scores have made timely repayments on previous loans and lack defaults on current outstanding loans.

Q. What is Credit Information Sharing

Ans. It is a process through which lenders exchange consumer information, specifically related to a consumer’s borrowing history. This exchange is facilitated through Credit Reference Bureaus.

Q. Why do we share your Credit Information?

Ans. Sharing borrowing history of consumers can result in the following:

  1. A decrease in bad debts and defaults
  2. Reduces over indebtedness 3)Consumers become wise in managing debt because now there are consequences!
  3. More consumers can access affordable credit!
  4. Rewards good borrowing behaviour. Consumers with healthy credit scores access loans with more favourable terms
  5. Lending decisions are made faster because more information is available.

HELB : Financial Literacy Assessment

1. What is a Loan?

A loan is a sum of money borrowed to be repaid with interests as per terms and conditions given by the lender.

Ans: True.

2. How does one access the HELB Loan?

To access the HELB loan, one must make an application and submit the same for processing.

Ans: True.

3. Must one apply for a HELB Loan?

It is not compulsory to apply for a HELB loan if one has alternative sources of financing their education. Only apply for the loan if you need financial assistance during your studies.

Ans: True.

4. Who qualifies to apply for a HELB loan?

A government sponsored or privately (self) sponsored student in a recognized institution of Higher Learning can apply for HELB loan at any stage of their academic program as long as they are within their allowable loans for course duration.

Ans: True.

5. I am below 18 years, Can I access HELB Loan?

Until I am 18 years of age and holder of a KENYAN NATIONAL ID card, I CAN NOT access HELB Loan. The loan is a legally binding agreement between HELB and the applicant. I cannot use another person’s National ID to apply for the loan because it is illegal.

Ans: True.

6. What do I do if I am unsatisfied with my previous loan award?

If not satisfied with loan award, I may appeal/ request for review of my loan award if amount sought is within the applicable loan limit.

Ans: True.

7. How much is charged as loan Interest?

HELB offers Undergraduate direct entry, TVET and Afya Elimu loans which are repayable at an interest rate of 4% p.a.

 

Ans: True.

8. The following is a list of expenditures. Which one is applicable on how HELB loan should be utilized?

Ans: Paying College/University fees and purchasing study materials

9. A loanee has the following obligations, which one is NOT true?

Ans: Fail to repay the HELB loan when due

10. Which one of the following statements is False?

Ans: I will be NOT be required to repay the loan whether I finish School or not.

 

 

 

Frequently Asked Questions

Student FAQs.

  1. Visit our website or hef.co.ke to access the Student Portal and click on “register” to create an account.
  2. Enter your National Identification number or KCSE Index number (for a minor).
  3. Enter a valid email address and password and click “register”.
  4. You have successfully created an account. Check your email (Inbox or Spam/ Junk) to activate your account and log in after email activation.
  5. Enter a valid Telephone number where a verification code will be sent. If the verification code expires, click resend button to get a new verification code.
  6. Fill your profile & update your Biodata.
  7. Give consent to collection of your personal data.
  8. NOTE: Read through the consent form to understand why we are collecting your personal data then tick the checkbox to agree with terms of use.
  9. Fill in your personal details then save to continue.
  10. When all details are complete, submit your scholarship/loan request.
  11. Consent to processing of your data by Accepting the loan terms and conditions.
  12. Update your guarantor details.
  13. Provide loan payment information as per the fields provided (Bank or mobile payment)
  14. Submit your loan application.
  1. A valid email address for the applicant (Student)
  2. Valid telephone number (must be registered in your name to apply for a loan)
  3. KCPE and KCSE index numbers and year of examination
  4. Passport size photo
  5. Copy of your National ID (for loan application)
  6. College/University admission letter
  7. Your parents’ registered telephone number
  8. Your parents’ national ID number
  9. Death certificate if any of your parent is deceased.
  10. Your birth certificate.
  11. Two guarantors’ (Can be your parents) ID numbers and registered telephone numbers (for loan application)
  12. Copy of the sponsorship letter if you were sponsored in Secondary school.
  1. Dial *642# and select login option.
  2. Enter your PIN to login.
  3. Select the loan application option.
  4. Choose your application level: Degree, Diploma or Certificate.
  5. Select academic year and click send.
    1. Download the HELB App from Google Play Store .

    Note. There has been an upgrade on the HELB App, therefore ensure to upgrade your App.

    1. Register using your phone number to generate a PIN which you will use to log in.
    2. Ensure the mobile number is registered under your name. Please NOTE that mobile numbers not registered in the student’s name will not be able to proceed with the application.
    3. Read, understand, and click to accept the license agreement.
    4. Enter your first name as it appears on your national ID card, the ID number and valid email address to complete registration.
    5. Click on the “loans” tab and choose Degree. Then click “apply” on the Undergraduate subsequent loan.
    6. Read and understand the process tutorial and proceed to read the financial literacy guide.
    7. Click on get started to start the application process.
    8. Enter your phone number which should be registered in your name and national id number to verify that you are the owner of that number.
    9. Read and understand the loan terms and condition and agree to proceed.
    10. Answer the financial literacy questions and scroll down to view results and click “proceed”.
    11. Select your preferred loan payment option.
    12. Click request loan to view and verify your loan details.
    13. Click “submit” to complete the loan application. A pop-up message will appear to show that you have successfully applied. The loan serial number will also be displayed.
    14. At later dates, you will receive other notifications on awards and disbursements of upkeep and tuition loans and where applicable, bursary.
  1. Download the HELB App from Google Play Store . Note. There has been an upgrade on the HELB App, therefore ensure to upgrade your App.
  1. Register using your phone number to generate a PIN which you will use to log in.
  2. Ensure the mobile number is registered under your name. Please NOTE that mobile numbers not registered in the student’s name will not be able to proceed with the application.
  3. Read, understand, and click to accept the license agreement.
  4. Enter your first name as it appears on your national ID card, the ID number and valid email address to complete registration.
  5. Click on the “loans” tab and choose Certificate/ Diploma. Then click “apply” on the TVET second and subsequent loan.
  6. Read and understand the process tutorial and proceed to read the financial literacy guide.
  7. Click on get started to start the application process.
  8. Enter your phone number which should be registered in your name and national id number to verify that you are the owner of that number.
  9. Read and understand the loan terms and condition and agree to proceed.
  1. Answer the financial literacy questions and scroll down to view results and click “proceed”.
  2. Select your preferred loan payment option.
  3. Click request loan to view and verify your loan details.
  4. Click “submit” to complete the loan application. A pop-up message will appear to show that you have successfully applied. The loan serial number will also be displayed.
  5. At later dates, you will receive other notifications on awards and disbursements of upkeep and tuition loans and where applicable, bursary.

The HELB loan mobile payment option is currently available on Mpesa, below is the procedure on how you can access and withdraw the funds from HELB Mini App.

  1. Download the MPESA App from Google App Playstore or Apple App Store or Huawei App gallery.
  2. Register on the MPESA App using your MPESA registered phone number, and make sure you are using data bundles from Safaricom.
  3. Login and go to the home page, then Categories, and to the Education tab.
  4. Select HELB from Education tab.
  5. Register on the HELB Mini app.
  6. Sign in using your MPESA registered phone number, and you will receive a verification code via SMS for login.
  7. Once you log in, kindly click on the home page tab to withdraw your funds to your MPESA using the withdraw button on the page.
  1. Dial *642# and select “login” option.
  2. Enter your personal details to Login.
  3. Select “withdraw funds”
  4. Select “upkeep” then select the amount to withdraw.
  5. You will receive a confirmation message of the funds deposited in your Mpesa Account.

NO.

HELB applications are paperless and you are not required to print any form. Once you have completed your application on the portal/ HELB mobile app, a confirmation SMS with a loan application serial number is the evidence that you have applied. Kindly ensure that you save the SMS for future reference.

HELB does not charge any fee to access the loan application, report any form of extortion to the authorities.

#KaaChonjo

Should you require further support, please email us on [email protected] or call us on0711052000. 

 

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