Loan repayment in Kenya is becoming a serious issue and the HELB agency has urged students to be more aware of repayment terms when borrowing the money.
Unknown to many beneficiaries of HELB loans, when they fail to remit their monthly instalments for more than three months, the agency reports them to the credit reference bureaux (CRB).
This leaves many jobless graduates in limbo:
They do not have a paying job that would allow them to make regular payments to Helb and they cannot access bank loans to start businesses and earn an income.
HELB said it lists borrowers with CRBs if they do not start repaying their loans three years after graduating.
“If the defaulter clears the loan in one lump sum payment, we update [CRB data] within 24 hours. We also update CRBs upon commencement of an agreed repayment plan,” Corporate Communications Manager Wavinya Muigai said.
Read more on this on Huffington Post