If you a wondering about an alternative way to fund your education you can go through a bank. A bank education loan is meant to help students pay for their general education, however, it is mostly used towards university tuition fees, books and living expenses. It is usually in the form of a personal unsecured loan.
It differs from other personal loans because the interest rate is usually lower than the usual personal loan and some banks allow you to defer the payment schedule all the while the child is studying. Some of the banks that offer the product are:
Kenya Commercial Bank Masomo Loan
The KCB Masomo loan product of a partnership with the Higher Education Loans Board targeting those pursuing undergraduate and post graduate studies in accredited institutions of higher learning in Kenya.
Features of the KCB Masomo Loan
- It allows a maximum amount of KES 300,000 to be borrowed
- Loan is payable within a period of 24 months
- The loan attracts a 2% charge above the base rate set by the Central Bank of Kenya
- Top up loans are available to borrowers provided that 25% of the principal loan has been paid back
The Requirements to Apply for a KCB Masomo Loan Include:
- You must have an account with KCB for at least 3 months
- Original copy of ID or passport
- Latest copy of original payslips
- Proof of income if self-employed
- Admission letter from university or college
Bank of Africa Soma Loan
The Soma Loan is a personal unsecured loan that offers you a very competitive rate. It can be used to finance someone through; Primary, High School and College/University (Graduate & Postgraduate).
Features of the Soma Loan Include:
- The bank charges a 2% processing fee
- The bank allows a minimum borrowing of Kshs. 20,000 and a maximum of Kshs. 500,000
- There is a loan tenure of up to 10 months
The Requirements to Apply for a Soma Loan Include:
- You must be employed or retired with regular pay or a defined income stream
- A minimum of 3 months with the same employer (for employees)
- Provide a valid employment contract
- Provide last pay slip (for employees)
NIC bank
This is an unsecured personal loan offered by NIC bank to help in the financing of primary, secondary and tertiary education.
Features of the NIC Bank Education Loan
- The Minimum amount you can borrow is KES 50,000 and the maximum loan amount is KES 1,000,000
- It has a repayment period of up to 48 months
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