HESLB LOANS: IMPORTANT TIPS FOR EMPLOYERS & EMPLOYEES

Bibi Mikopo · 2016-07-30T08:47:18+00:00

Kutoka fb ya HESLB: (i) What should employer do when recruiting new graduates? · According to Higher Education Students’ Loans Board Act No. 9 of 2004 (as amended), employer should notify the Board in writing of the employment of the higher education graduates within (28) days from the date on which such loan beneficiaries are employed (ii) What will happen after submitting list of recruited graduates to HESLB? · Upon receipt of the information from employers, the Board shall identify employees who benefited from higher education loans (iii) What are the responsibilities of the employer after receiving a list of loan beneficiaries from HESLB? · Ensure that the monthly deductions from salaries of loan beneficiaries are effected and remittance of such deductions is made as prescribed by the Board within (15) days after the end of each month (iv) What will happen when employer stops to deduct from employee’s salary even after being informed by HESLB that such employee is a loan beneficiary? · Failure to deduct or after deducting any loan repayment from a loan beneficiary does not pay such deductions to the Board within the prescribed period a sum of equal to ten percent (10%) of the total amount of repayment is charged on the employer for each month that repayment remains unpaid (v) When should a loan beneficiary start to repay? · Loans begin to be repaid following expiry of one year grace period upon successful completion of studies or upon earlier termination of studies for whatsoever reasons (vi) Does employment status of a loan beneficiary matter in loan repayment? · Loan beneficiaries must commence to repay their loans on due date regardless of their employment status (vii) What is the percentage charged every month on loan for each beneficiary? · All outstanding loans are charged with Value Retention Fee (VRF) at a rate of 6% per annum (viii) Why does HESLB charge Value Retention Fee (VRF) on principal loans? · Loans are charged with value retention fee to maintain a value of money against inflation rate so that the same should have equal value when issued as loans to other needy students in future (ix) What are the legal consequences for a beneficiary who defaults? · Any beneficiary who, without good cause fails to repay the loan is liable to civil proceedings. Moreover, the following consequences shall fall upon them: (a) His loan is loaded with a penalty of 10 % of the outstanding loans (b) His information of loan status is being submitted to the credit Reference Bureaux, following which they are barred from access to credit facilities from all Financial Institutions (c) He is barred from Securing Government scholarships or admission for Postgraduate studies in any Higher Learning Institution outside the country (d) Their details shall be submitted to the Ministry of Home Affairs, Department of Immigration and all Embassies where they will be denied approval for travelling abroad (x) What is the role of Controller and Auditor General (CAG) and other private auditing firm in enhancing loans repayment and recovery? · The role of Controller and Auditor General (CAG) office and other private Auditing firms is to enforce compliance of employers in submission of Graduates information and remittances of loan deductions (xi) What should a beneficiary do to settle his/her loan? · Upon successful completion of studies or upon earlier termination from studies for whatsoever reasons, a loan beneficiary must inform the Board in writing his whereabouts and the status of his employment so as to arrange with the Board on repayment of his/her loan (xii) How are deductions remitted to HESLB? · For an employed beneficiary, 8% of his/her basic salary will be deducted from his/her salary every month · A beneficiary may decide to pay a minimum of TZS 100,000 each month through the following ways: I. Tanzania Postal Bank CCA0240000032 II. NMB Bank Account 2011100205 III. CRDB Bank Account 01J1028467503 info@heslb.go.tz

Thread starter Bibi Mikopo
Start date Jul 30, 2016

Bibi Mikopo

Senior Member

Jul 30, 2016

bavitamlewa

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HESLB LOANS: IMPORTANT TIPS FOR EMPLOYERS & EMPLOYEES

Bibi Mikopo

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bavitamlewa

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