Minimum HELB repayment amount: requirements and conditions

Publish date: 2024-08-30

The Higher Education Loans Board (HELB) plays a crucial role in financing Kenyan students' university education. After completing your studies, you are obligated to repay the loan with accrued interest. Here is everything you need to know about the minimum HELB repayment amount, requirements, and conditions.

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HELB loans are a lifeline for many students, but repayment begins soon after graduation or upon securing employment. The repayment process is structured to ensure that beneficiaries can manage their financial obligations without undue burden.

What is the minimum HELB repayment amount?

HELB offers flexible repayment options to cater to various financial situations. There is no set minimum repayment amount mandated by HELB. However, factors like your outstanding loan balance and chosen repayment plan determine your monthly instalments.

Conditions for the minimum HELB loan repayment amount

According to the HELB Act 1995, a HELB loanee should remit the specified amount every month after one year's grace elapses. The grace period lasts for 12 months after completion of your last semester.

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Changes to one's commitments subject to the loan should be updated regularly until the full loan service. The board can award an individual who consistently remits their dues a certificate of compliance. Once the loan has been fully settled, HELB is obliged to issue a certificate of clearance upon completion.

HELB repayment rates

HELB repayment rates are influenced by the principal amount, interest rate, and the repayment period. The standard interest rate for HELB loans is 4% per annum.

The repayment period generally spans 48 to 120 months, depending on the borrower's financial ability and agreement with HELB. The HELB monthly deduction rates are 25% of your gross monthly salary, ensuring sufficient income to meet your basic needs.

HELB loan calculator

The HELB loan calculator is a crucial tool for beneficiaries. This online tool helps borrowers estimate their monthly repayments based on their loan amount, interest rates, and repayment period.

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HELB offers a user-friendly loan calculator on their website to estimate your potential monthly repayments. This tool considers factors like:

By inputting this information, the calculator provides an estimated monthly repayment amount that adheres to the 25% deduction limit.

HELB loan repayment process

HELB provides various convenient repayment channels. If you are formally employed, your employer can deduct your monthly instalments directly from your salary and remit them to HELB. You can also make individual payments through various HELB payment methods:

1. USSD code

Follow the steps below to make your loan repayments.

  • Dial *642# on your phone.
  • Select option 1: "Login".
  • Choose option 5: "Loan Repayment".
  • Select option 4: "Repay loan".
  • Choose your payment method: Option 1: M-Pesa and Option 2: Deduction schedule (for employer-based repayment).
  • If you choose M-Pesa, decide to pay the full or specific amount.
  • If paying a specific amount, enter the desired amount and confirm.
  • You will receive a notification from E-Citizen containing the invoice number, amount to pay and the HELB repayment pay bill.
  • Enter your M-Pesa PIN to complete the payment.
  • You will receive confirmation notifications from both M-Pesa and E-Citizen acknowledging the payment.

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    Payment through the HELB portal

    Follow the steps below to make your loan repayment through the HELB portal.

  • Visit the official HELB portal.
  • Navigate to loanees portal.
  • Log in or proceed to register if you don’t have a log in account.
  • On the portal, select the self-serve option from the HELB menu.
  • Under the self-serve option, choose "Loan Repayment".
  • Click on the "Make Payment" button.
  • Enter the amount you wish to pay and click "Pay".
  • You will receive a notification to confirm your payment.
  • Once confirmed, the payment options will be displayed.
  • Select your preferred payment option. Note that you will need to make a cash deposit for bank payments.
  • For the M-Pesa option, select "send STK".
  • A prompt will be sent to your phone.
  • Enter your M-PESA PIN.
  • After making the payment, click "Complete".
  • You will receive notifications from E-citizen and M-Pesa immediately after the payment is made and a notification from HELB once the payment is allocated to your statement.

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    HELB mobile app

    Follow the steps below to make your repayment through the HELB mobile app.

  • Download the HELB mobile app from the Google Play Store.
  • Log in if you have an account or register to create a new account.
  • Navigate through the app menu and select the "Pay Loan" option.
  • Confirm your phone number and the amount to pay.
  • Enter your M-Pesa PIN when prompted.
  • You will receive notifications from both E-Citizen and HELB.

    • For employers

    For those employers, follow the steps below:

  • Visit the official HELB website and click on "Portals".
  • Select "Employers" and log in using your email, employer code, and password.
  • Upload the remittance list.
  • Confirm the accepted amount.
  • Once confirmed, click on "Payments" in the sidebar menu.
  • Choose the remittance record you want to pay for, then click the "Make Payment" button.
  • A pop-up screen with fields for your phone number and the amount will appear. Enter the phone number and then click the "Process Payment" button.
  • The system will validate the data entered and redirect you to a payment processing page.
  • Choose the desired payment mode, proceed, and initiate the payment.
  • Once the payment is accepted, click the "Complete" button. This will redirect you to the payment request page, where you can update the remittance.
  • After being redirected, the payment will be automatically updated with the receipt number visible and the status marked as completed.
  • On the sidebar menu, click "Statements" to view updated and paid remittances. You can proceed to generate the receipt.

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    Note: Employers making payments of Ksh. 250,000 and below can be paid via M-Pesa. Provide the phone number for the employer making the payment and follow the instructions to complete the payment.

    How to check HELB loan repayment status?

    Borrowers can check their repayment status through the HELB online portal. By logging into their account, they can view the outstanding balance, repayment history, and next payment due date. Alternatively, you can contact HELB's customer service department via phone or email for assistance checking your repayment status.

    How to get HELB clearance certificate?

    Upon full loan repayment, you can apply for a HELB clearance certificate. This certificate is essential for various formalities, including job applications and compliance with certain legal requirements. To obtain the certificate, ensure the loan is fully paid.

    If you did not benefit from the HELB loan, you can apply for the non-loanee compliance certificate from the HELB portal or e-Citizen portal. This service is free.

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    How to stop HELB loan deduction?

    If your loan is fully repaid or you wish to change your repayment method, you can stop HELB loan deductions from your salary. Ensure you have a valid HELB clearance certificate confirming full loan repayment.

    You can also inform HELB in writing about your intention to stop loan deductions. Provide your employer with a copy of your clearance certificate to instruct them to cease further deductions.

    How much does HELB deduct from salary?

    In such cases, you are required to contact HELB for a billing schedule.

    What happens if you default?

    You will be penalized. You pay a fine of not less than five thousand shillings for each unpaid month.

    What happens if you overpay your loan?

    If you overpay your loan, you need to submit a correctly filled loan inquiry form and confirmation from your employer that the loan deductions have been stopped. This can be done through the HELB portal.

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    Repaying a HELB loan is a critical responsibility for beneficiaries. Understanding the minimum HELB repayment amount, repayment rates, and the monthly deduction rate helps plan finances effectively. Utilize the HELB loan calculator and explore various repayment options to find the best plan for your financial situation.

    Tuko.co.ke recently published an article on how to file KRA returns for employees in your business. The Kenya Revenue Authority (KRA) requires every registered taxpayer with a KRA pin to file their returns every financial year.

    Non-Kenyan residents working as employees or with permanent establishments are also subject to income tax. KRA has provided the iTax platform, allowing people to file tax returns conveniently and efficiently. Find out how.

    Source: TUKO.co.ke

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