07 MAR

You Must be Financial Literate Before Applying for HELB Loan

The employability rate of grandaunts from Technical and Vocational Training (TIVET) institutions is 98 percent of their first year compared to 51 percent of those leaving universities in Kenya according to The Higher Education Loans Board (HELB).

HELB chief executive officer Charles Ringera said they want to advance loans to students in TIVET institutions besides the universities within the KSH 10.3 Billion for the 2016/2017 Financial Year to benefit 240 students.

“Our TIVET programme is tailored for people who get out of school and start working in the market rather than looking for a job. The employability of rate of a TIVET to us is at 98 percent in the first month of graduation, but the employability at the graduate level is 51 percent in the first year of graduation,” noted Ringera.

He also projected that by the end of 2018 they intend to cover 36 percent of the students in institutions of higher learning compared to the 600 thousand who access the fund.

He was addressing the media when they launched the e-Financial Literacy Program in collaboration with Maisha Edu, APA Insurance Limited and the Kenya Commercial Bank.

The e-Financial Literacy Program aims to give youth’s financial education on how to manage funds. Thus, Students applying for loans will now have to undertake a financial literacy test.

Ringera explained that the program  seeks to address one of the key challenges they have been facing with university students inadequate knowledge on how to manage their finances and there was a need for them to understand that Helb is a loan as well as understand they must use the money for the intended purpose.

“The concept is derived on how financial literacy was to be impacted. It seeks to help Students in managing their funds and budgeting. The first phase of the literacy program is being carried out on first time applicants.

“’We’re seeking to create conversations around the fact that you don’t have to finish School to start repaying. You must be financially literate before applying for our products,” he says. Last month, the board raised the minimum allocation for each student to Sh40, 000 and a maximum of Sh60,000 per academic year from the current allocation range of between Sh35,000 and Sh50,000 per year.

The program kicked off in August 2016 with 1st Time Undergraduate Loan applicants with over 60 thousand students applications completed at the end of the e-Financial literacy content. The program is tiered for 2nd year, 3rd years and 4th years depending on the relevant information for the student for instance, for 4th years we lean towards loan repayment channels and how to avoid the penalty of Ksh 5, 000.

In Kenya this is a pioneer project that seeks to appease to the younger generation in terms of financial literacy. Maisha Edu is all about empowering Kenya’s youth by bringing financial concepts to life for today’s digital generation.

APA and KCB have sponsored Maisha Edu thus enabling them to provide the platform to HELB at no cost.

Source: https://sokodirectory.com/2016/09/must-financial-literate-applying-helb-loan/