Tanzania Student Loans Board Recovers Shs45 Billion From Borrowers

Tanzania Higher Education Students Loans Board

THE Higher Education Students Loans Board (HESBL) has collected 45.1 bn/- out of 79.1bn/- supposed to be collected from loans beneficiaries who borrowed since 1994/1995.

Briefing journalists in Dar es Salaam, HESBL Assistant Director of Information, Education and Communication, Mr Cosmas Mwaisobwa, said out of loans valued at 1.5tri/- which were dished out to 260,150 students since July 1994 to June 2013, it is only 512.4 bn/- which matured and ready for repayment by the borrowers.

"Loans to the tune of 990.1bn/- are yet to mature because the beneficiaries are still studying and some are enjoying a one-year grace period after completion of their studies before being required to start repaying their loans," Mwaisobwa said.

"Since every loan beneficiary is given a period of ten years to repay the loan in installments, it is only 79.1 bn/- which is currently outstanding, and until January, this year, we had collected 45.1 bn/-, which is equal to 57 per cent of the outstanding amount", he added.

He also said HESBL had introduced a repaying system under which the borrowers can now repay by M-Pesa, and from April, this year, they can also use Airtel Money.

"Before starting to use the services the loans borrower must first communicate with HESBL to obtain their loan statement, loan installments and loan number," he clarified.

He explained that the number of students who receive loans had continued to increase, from 42,729 in 2005/2006 when the HESBL started operating, to 97,348 students in 2012/2013.

This is an increase of 10.7 per cent per year, while loans given to needy students increased from 56.1 bn/- in 2005/2006 to 306 bn/- in 2012/2013.