You need an education loan ,where were the scholarships?

    October 04, 2014   No comments

Apart from the HELB loans provided by the government to few higher education students, its very rare to hear about the much needed education loans to be coming from the side of credit lenders including comercial banks in Kenya.
Many financiers don't lend to students because majority are not creditworthy.But,where are the scholarships? Due to their competitiveness and limited slots, majority of students are locked out.Whats next for them? Nowadays, education is almost becoming a basic want
.Are there loans to save the multitudes?
I know of saccos and other informal sources of funds in kenya like 'Milango' and 'Opportunity kenya' just to mention afew ,but if you are to be involved personally as the student in question,you must forget about joining campus at a young age because you'll have to save and save until you reach the required minimum savings for an education loan.They say 'Better late than never'.Consider this option and get that professional degree in the future.If you have a parent or a guardian already in a sacco you can convince them to borrow for you.
Now lets look at education loans from comercial banks. Banks don't offer an education loan as such.Its purely a personal loan.Your parent or guardian should do the borrowing.Apart from the Bank of Africa's Soma loan,KCB's Masomo Loan is another perfect example.It finances even salaried individuals wishing to further their studies.
KCB MASOMO LOAN.
The only thing which makes it an educational loan is the requirement to provide a letter of admission from the university or college during the application process. The other requirements are for a normal personal loan.They include ;
-Providing latest 3months payslips for salaried clients or a proof of income for self-employed individuals. Books of accounts can be useful here.
-Borrower must have been holding an active account for at least 3 months with KCB(Kenya Comercial Bank).
LOAN AMOUNT.
-The loan amount will not be exactly the same as the total fee required.Its probably going to be slightly higher or lower.Note; the maximum loan amount can not go beyond ksh300000 .Your ability to repay will earn you the highest loan amount to be repaid within a period of 24months.
Though it looks like a mere personal loan,majority are taking advantage of its existency.It also helps in easy fee payment to the institution of higher learning involved.
ADVICE.
-dont waste all your time looking for scholarships as they are too competitive and offer only a few chances.Though you'll repay later  after a given duration of time,education loans do help too.                                                      
You can always ask for more information by leaving a comment below.
Thank you! 
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Mwabaya Katana

Posted By Mwabaya Katana

Mwabaya Katana is a Personal Finance online writer.He is the founder of 'Loans Kenya' Blog.

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