HomeFINANCETypes of Loans Available to Every Civil Servants in Kenya

Types of Loans Available to Every Civil Servants in Kenya

Today’s article will discuss the primary loans for civil servants presented by the government or its associations. There are three major loans that the Kenyan government of contributes to its employees. These loans comprise Higher education loans, Mortgage loans, & car loans.

Loans for Civil Servants In Kenya

Here is a list of the various loans on offer to civil servants in Kenya:

Higher Education Loans

Government employees in Kenya are qualified to access education loans from the higher education loans board in Kenya.
Via this loan, one can seek their master’s/post-graduate education and any other professional credentials.
Loan features
Up to Ksh.500,000 available
The repayment duration is 72 months.
The interest rate is at 5% on the declining balance.

Eligibility for this loan

To be qualified for this loan, one has to be employed in the following ministries.
National police service
Government ministries
Kenya Prisons
County governments
Parliamentary service commission
In addition to ensuring the eligibility criteria, one has to submit the following copies during the application.
Employer recommendation note
Admission letter from an identified university
Certified duplicates of ID and KRA pin as well as two recent passport size photos
certified duplicates of ID’s of two guarantors who have to be civil servants
Duplicates of your most recent 3 month’s payslip
Once you are fulfilled that you have all the documents prepared, submit your application via the Helb website.

Mortgage Loans

A civil servant in Kenya is suitable for a mortgage loan in Kenya. This is achievable through the civil servant housing scheme fund.
This fund was established in 2014 and has distilled its operations over time, offering the best cheap loans to civil servants.
The Components of civil servants mortgage loans are:
One can borrow from 4 million to 40 million depending on the job status of the civil servant.
The interest rate charged is as humble as 5% per annum on the declining balance.
The loan repayment duration is up to 20 years.
This loan is repaid by employing the check-off system to reduce administrative fees.
Only a 10% downpayment is needed for you to receive 90% financing.
The current mortgage plan is being managed by KCB as well as the housing finance company.

Car Loans

Presented in 2015, these cheap car loans are relatively affordable. For example, a civil servant can access from KES 600,000 to KES 10,000,000.
It’s worth mentioning that the higher your job group, the more increased the amount of loan you will obtain.

The interest loan relevant to this loan is 3% per annum, which is way below the banks’ acquisition financing loans.
A good employer always attempts to motivate his or her workers. This is what the government of Kenya gains through these loans.

Loans for Civil Servants in Kenya Conclusion

The government of Kenya attempts its best to provide cheap loans for government employees, as concerned above.
It is worth mentioning that other microfinance and banking organizations also offer loans to civil servants.
Such organizations include Faulu Bank, Equity Bank, and KCB Bank.
Cases of civil servants forfeiting their money to serving loans they did not take are widespread these days. One such issue has been with platinum credit loans.
Platinum credit is infamous for erroneously making civil servants’ service loans they didn’t devote for.
Civil servants are urged to avoid taking loans from just any source based on this.

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