HELB Offers 80% Penalty Waiver for Loan Defaulters

HELB Offers 80% Penalty Waiver for Loan Defaulters.

The Higher Education Loans Board (HELB) has introduced an 80% penalty waiver for defaulters who opt to clear their outstanding loans in one payment. The loan board announced the incentive on Monday, March 24, encouraging eligible borrowers to reach out through its various communication channels.

The notice highlighted the simplicity of the process, stating that settling the HELB loan in full would grant access to the substantial penalty reduction. However, it did not specify a deadline for the offer.

“Settle your HELB Loan in a lump sum and enjoy an 80% waiver on accrued penalties. Simple, rewarding, and just a call, DM, or email away!” the statement read.

Previous Waivers to Boost Repayment

HELB has a history of providing penalty waivers to encourage defaulters to resume loan payments. On March 1, 2022, a full 100% penalty waiver was introduced as part of a campaign aimed at increasing repayment following the economic hardships caused by the Covid-19 pandemic. Initially set to last until April, the waiver period was extended for two additional months, concluding in June 2022.

HELB Chief Executive Officer Charles Ringera explained that the initiative acknowledged the economic difficulties faced by defaulters. The financial strain caused by Covid-19, including rising unemployment and struggling businesses, significantly impacted loan repayments.

“We acknowledge that unemployment and underemployment as well as a challenging environment for loanees to start and run businesses, has affected HELB loan repayment.”

Similarly, in 2018, a full penalty waiver was offered to promote compliance and encourage lump sum payments. These recurring waivers serve as an incentive for thousands of Kenyan graduates who have yet to meet their HELB repayment obligations.

HELB Offers 80% Penalty Waiver for Loan Defaulters.

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