I am currently employed and earning Ksh 75,000 per month. I want to take a loan for my masters degree because I have not saved any money for that. I am confused which loan to take between Sacco and Helb.Please help?
Answer….
Helb loan
Helb offers jielimishe loan with maximum of Ksh 600,000 paid to applicants. The interest rate is 10% per year. Repayment period is between 12 to 48 months. If you are a government employee, the repayment period is up to 72 months.
Helb will only require your ID number, admission letter and pay slip. Getting a loan is automatic.
Sacco loans
Sheria Sacco—Ksh 500,000, Interest 1% per month reducing balance and maximum repayment period of 12 months
UN DT Sacco—Loan amount of up to Ksh 3 million, Interest rate 12% per year and repayment period 12 months.
Finnlemm Sacco—No maximum loan amount, Interest rate is 1% monthly on reducing balance, repayment period is 12 months.
Kimisitu Sacco—Loan maximum amount is Ksh 50,000,000, Interest Rate 1% on reducing balance, Repayment period is 24 months.
Amref Sacco—Loan of up to 3 and half times your deposit, repayment period is 24 months and interest is 1% per month on reducing balance.
MKU Sacco—Loan is 3 times your deposit amount, Interest Rate is 1% on reducing balance. Repayment period is 24 months.
Waumini Sacco—Loan amount is 500,000, repayment period is for 12 months and interest rate is 1% per month on reducing balance.
NSSF Sacco—Loan amount of up to Ksh 200,000, Interest rate is 1.5% monthly on reducing balance. Repayment period is 24 months.
Those are some of the examples of Saccos that offer education loans in Kenya. When it comes to interest rate, Helb offers lower interest than Saccos.From the examples above, the interest rate is 1%-1.5% per month for Saccos which is equivalent to 12% per year.Helb charges interest of 10% per year. From this comparison, it’s better to take a loan from Helb than Saccos.
Another thing that shows Helb loans are better than Sacco loans is the repayment period.Helb allows you to repay for up to 48 months while Saccos gives one a shorter period of 12 months to 24 months. The repayment terms are flexible for Helb.
Helb loan is up to Ksh 600,000. This means that if your fee structure is below Ksh 600,000, you will comfortably get the loan. But if you want a loan of more than Ksh 600,000, Saccos will be ideal. A Sacco like Kimisitu will give you a loan of up to Ksh 50,000,000. UN DT Sacco will give you a loan of up to Ksh 3 million.
One thing I like about Helb loans is that they don’t require you to be a member unlike Saccos.Their terms are very flexible. This implies that it’s better to take a loan from Helb compared to Saccos.But Saccos are better than Banks.
