When it comes to our products, it’s natural to have questions—lots of them. Here, you’ll find answers, plus tools, guides, calculators and more. Welcome to HELB Learn.
What is a Debt?
It is an amount of money borrowed by one party, a debtor, from another, a creditor. For an individual, they may borrow to finance education, a car, a home; for a business, they may seek to borrow funds to expand their operations.
Good debt is an investment that will grow in value or generate long-term income. A perfect example of a good debt is taking out student loans to pay for a college education. It’s an investment in your future!
Bad debt is debt incurred when purchasing items that quickly lose their value, do not generate long-term income and typically carry high interest rates.
It is a rating computed by credit reference bureaus based on information available on your credit report. A credit report is a report detailing a person's financial history specifically related to their ability to repay borrowed money. Individuals with good credit scores have frequently paid bills, made timely repayments on previous loans and lack defaults on current outstanding loans.
Do I require a KRA pin certificate when applying for a HELB loan?
Yes, a KRA pin certificate is compulsory. Further, having a pin certificate requires you file tax returns annually to avoid penalties.
One of the most prevalent forms of consumer fraud is identity theft. This occurs when personal information is used by an individual who is not authorized to possess or use the information. Examples include the illegal acquisition of a credit card or bank account number.
What is a Student Loans Self Protection Scheme (SLSPS)?
This is a protection plan that covers the portion of an outstanding loan balance for a performing loan in the case of a mature loan and the full loan balance in the case of a non-mature loan in the unfortunate event of death of a loan beneficiary. This works like credit life in insurance. Jielimishe loan beneficiaries are covered for the outstanding loan liability in case of death or permanent and total incapacitation.
Credit Information Sharing
It is a process through which lenders exchange consumer information, specifically related to a consumer’s borrowing history. This exchange is facilitated through Credit Reference Bureaus.