Student loans in Kenya and where to find them.
Student loans in Kenya are becoming increasingly popular as time passes. Gone are the days when a person could get a job without a degree. Job competition is increasing as more people become qualified for the position.
As a result, many people who cannot afford the high cost of university education in Kenya are considering taking out an education loan. This allows the student to study peacefully for four years in college on the loan while paying off the debt in small chunks.
The payment is due as soon as the new graduate obtains their first official job. That is why many people in Kenya choose to take out a university education loan.
In this article, we will look at the various institutions in Kenya that provide student loans. This article will explore the various options available to ensure that our dreams come true.
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Kenyan student loans come in different forms.
In Kenya, there are two types of student loans. They are as follows:
- Private students loans
- Government students loans
Government students loans/Student loans from the government
This type of loan is provided by government agencies and frequently has lower interest rates. In Kenya, the government has established a board known as the Higher Education Loans Board (HELB).
Private students loans
Individuals, online lenders, banks, and even credit unions offer private student loans. When compared to HELB, it has a slightly higher interest rate. They can find it online or via the lender’s app.
Where to Get a Student Loan in Kenya?
When a student requires financial assistance to complete their studies, there are several options available. Here is a list of the best places to apply for a student loan:
1. Student Finance Africa (SFA)
SFA is an abbreviation for Student Finance Africa. This institution is one of the best places in Kenya to get student loans. This platform is simple to use, dependable, and adaptable to your needs.
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SFA has partnered with various universities and learning institutions to make the application process easier for applicants. As a result, during the application process, you can access the university and the program of study via the SFA platform.
If and when you are successful, SFA will fund up to 70% of your tuition fees, which will be reimbursed directly to your school. The loan is also simple to repay because it is paid in monthly instalments directly to SFA.
As a result, whether you are a guardian or parent, you can have peace of mind knowing that all you need to look for is 30% of your term’s school fees.
2. Higher Education Loans Board (HELB)
Higher education loans board is a state-owned corporation in Kenya that provides loans to deserving students. This is always one of the best student loans in Kenya because the payments are flexible and long-term.
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Furthermore, if you are fortunate enough, you may be eligible for a KES 8,000 bursary with HELB Loans. The maximum amount that can be awarded is KES 60,000.
Moreover, unlike the SFA loan, loan repayment schedules vary depending on the type of credit extended to you.
If it is a standard basic loan, repayment is made one year after you have completed your studies.
More information is on the HELB website.
3. Uniport Loans
Uniport is yet another reputable institution that provides student loans in Kenya. However, there is a catch in the way it makes loans. All loans are granted on the basis of merit.
As a result, a student must be exceptionally bright. Furthermore, Uniport offers a mentorship program through which students can interact with some of the best employers in the country even before they finish their studies.
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As a result, their chances of finding work faster than their peers are quite high.
All loans have a fixed interest rate of 11%, which is significantly lower than what banks are currently offering.
The repayment period begins six months after the completion of one’s studies. The good news is that payments are made quarterly rather than monthly.
Uniport loans are transforming access to student loans in Kenya for bright and deserving students.
4. AMREF SACCO – School Fees Loan
Amref Sacco is a well-known Kenyan savings and credit society. It provides student loans to parents who have children in school and are Sacco members.
You can only apply for one loan in this category at a time.
However, the interest rate charged on reducing balance is extremely low, at 6.5 per cent per year. If the loan is approved, it is paid directly to the school or university. The catch is that you must repay the loan within 12 months.
5. The Equity Bank
Equity Bank Kenya is a leading Kenyan bank that provides customers with affordable and innovative products. Furthermore, in addition to providing various other loans to its customers, Equity Bank still provides education loans to students.
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Their education loan is reasonably priced and has a short repayment period. To learn more about this loan, visit any Equity Bank branch in Kenya.
Requirements:
- Payslip
- Identification documents
- Employment letter.
Note: Visit their website to check out more insight.
How to apply for students loans in Kenya
To apply for students’ loans, follow the process below:
- Register and sign-in on the student’s loan providers platform ( e.g. HELB, online lenders)
- Download or print or fill the student loan application form
- Go through the loan application terms and conditions, then sign
- Submit all requirements
- Submit a copy of your application form and attach all documents to the loan provider for processing
- Wait for processing and if approved
- Get your loan
6. Musoni Microfinance
Musoni Microfinance is a Kenyan microfinance institution. It also provides school fee loans to its customers. One can borrow up to KES 100,000, which he/she must repay within three to twelve months.
A 3% upfront fee is also mandatory for the borrower to gain access to the loan. The interest rate charged is also lower than what a bank would charge.
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7. Bank of Africa – Soma Loan
Bank of Africa is one of the Kenyan banks that provide student loans.
This loan is available to all Bank of Africa customers in Kenya and can use it to fund students at all levels of education.
8. KCB Bank student loans
KCB (commercial bank in Kenya) Masomo loan seeks to help with educational advancement and knowledge acquisition. Parents borrow money to educate their children. Salaried people who want to further their education can apply for a KCB Masomo education loan.
Features:
- Borrowers may borrow up to Sh300,000 for educational purposes.
- The loan application process is quick and simple.
- KCB Masomo loans provide competitive interest rates for Kenyan student loan schemes.
- The repayment period is limited to two years.
Requirements:
- Must have had a KCB account for about three months.
- Original copy of a national identification card or passport
- Original pay slips from the last few months
- Proof of self-employment income
- Letter of admission from the university/college.
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9. Zidisha School fees
This is a global lending community that provides student loans to citizens. Zidisha is a crowdfunding website. This means that if you need money for a project, such as a business or education, you apply to lenders and request money.
Julie Kurnia also established Zidisha. They pledge to deeply commit themselves to empower and assisting people with various needs. To learn more about their requirements, go to their website.
Student loans in Kenya and where to find them
