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Learn how to conveniently repay your HELB loan using the USSD code *642# with this easy step-by-step guide. Avoid penalties and repay your HELB loan today!

How To Repay HELB Loan Using *642#

Posted on by Tutorials Handbook

The Higher Education Loans Board (HELB) is a crucial entity for many students in Kenya, offering financial assistance for higher education. Upon completing your studies, it becomes essential to repay your HELB loan to avoid penalties and legal action, as well as to contribute to the revolving fund that helps future students access loans.

READ ALSO: How to Track the Status of Your HELB Loan Application

One of the most convenient ways to repay your HELB loan is through the USSD code *642#. This method allows borrowers to repay their loan quickly, easily, and from anywhere in Kenya, without the need for an internet connection or a visit to the bank. In this article, we will provide a detailed, step-by-step guide on how to repay your HELB loan using *642#. We will also cover why repaying your loan is essential, address frequently asked questions, and give tips for managing your loan repayment.

What is HELB Loan Repayment?

HELB loan repayment refers to the process where beneficiaries of the Higher Education Loans Board (HELB) in Kenya repay the financial assistance they received during their time in higher education. HELB provides loans to Kenyan students to cover tuition fees, accommodation, and other academic expenses. Once students complete their studies or exit their educational institution, they are required to start repaying the loan. This repayment is crucial because HELB operates on a revolving fund system, meaning the funds repaid by past students are used to support new students in need of financial aid.

Repaying the HELB loan is an essential financial obligation that comes with terms and conditions, including a grace period after graduation and penalties for late payments. Borrowers are expected to make regular payments toward their loan balance, either in full or in installments, depending on their financial situation. Repayments can be made through various channels, including mobile payment platforms like Mpesa, bank transfers, and the *642# USSD code, which provides an easy way for borrowers to pay their loans from their phones.

Failure to repay the HELB loan can result in significant consequences, such as accruing penalties of KSh 5,000 per month, blacklisting by the Credit Reference Bureau (CRB), and potential legal action. Therefore, HELB loan repayment is not only about fulfilling a contractual obligation but also about maintaining a good credit standing and contributing to the sustainability of the fund for future students in Kenya.

Why Repaying Your HELB Loan Matters

Repaying your HELB loan is more than just a financial obligation. It plays a significant role in supporting the education system in Kenya. Here’s why you should prioritize your loan repayment:

  • Avoid Penalties

HELB imposes a fine of KSh 5,000 per month on any unpaid loan after the grace period. These fines can quickly add up, significantly increasing the total amount you owe. Regular repayments help you avoid these unnecessary costs.

  • Preserve Your Credit Score

In Kenya, HELB has partnered with the Credit Reference Bureau (CRB). If you fail to repay your HELB loan, you risk being blacklisted, which could impact your creditworthiness and limit your ability to secure loans from banks and other financial institutions. Maintaining a good credit score opens up more financial opportunities in the future.

  • Avoid Legal Action

HELB has the legal authority to take action against defaulters, including pursuing legal claims. Repaying your loan on time ensures you avoid any legal battles and the stress that comes with them.

  • Support Future Students

The HELB loan system operates on a revolving fund model. This means that when you repay your loan, those funds are used to support future students who need financial aid. By repaying your loan, you play a part in helping others access higher education opportunities.

  • Peace of Mind

When you are in debt, especially with accumulating penalties, it can create a lot of stress. Making consistent repayments ensures that you stay on top of your financial obligations, giving you peace of mind.

How To Repay HELB Loan Using *642#

Repaying your HELB loan using the USSD code *642# is a simple and effective way to manage your debt. Follow these steps to make your payment in just a few minutes:

Step 1: Dial the USSD Code *642#

To begin the repayment process, open your phone’s dial pad and enter the USSD code *642#. This code works across all mobile networks in Kenya, including Safaricom, Airtel, and Telkom. Once you have dialed the code, press the call button.

Step 2: Login or Register

After dialing *642#, you will be prompted to log in or register for the HELB mobile platform. If you are a first-time user, you will need to register by providing your details, such as your ID number and mobile phone number. If you’ve used this service before, simply log in using your credentials.

It’s important to note that registering or logging in is essential to ensure that the system can verify your identity and link your account to the correct loan details.

Step 3: Select Loan Repayment

Once logged in, you will be presented with a menu of options. Choose the “Loan Repayment” option. This is the specific feature designed to allow borrowers to repay their HELB loans.

Step 4: Select M-Pesa

After selecting loan repayment, the system will prompt you to choose your payment method. Choose “M-Pesa” as your preferred payment option. M-Pesa is Kenya’s leading mobile money service, making it easy to handle payments directly from your phone.

Step 5: Enter the Amount

Next, you will be asked to enter the amount you wish to repay. If you are unsure about your loan balance, it’s advisable to first check how much is outstanding before proceeding. You can repay a portion of your loan or clear the entire amount. Keep in mind that making regular, even small payments can help you avoid penalties.

Step 6: Enter Your M-Pesa PIN

After entering the amount you want to pay, you will need to authorize the transaction by entering your Mpesa PIN. This step ensures that the payment is secure and can only be completed by the account holder.

Step 7: Receive SMS Notifications

Once the payment is successful, you will receive two SMS notifications. The first one will come from M-Pesa, confirming that the amount has been deducted from your Mpesa balance. The second notification will come from eCitizen, confirming that your HELB loan repayment has been received and processed.

These SMS notifications serve as proof of payment, so it’s advisable to keep them for future reference.

Additional Tips for Managing Your HELB Loan Repayment

While repaying your HELB loan through *642# is convenient, there are some additional strategies you can use to ensure you stay on top of your repayments:

  • Make Regular Payments

Even if you can’t repay the full amount immediately, making small, consistent payments can help reduce your outstanding loan balance. Regular payments also help prevent the accumulation of fines and keep you in good standing with HELB.

  • Set Reminders

To avoid missing payments, set reminders on your phone or calendar. By keeping track of when you need to make payments, you can avoid unnecessary penalties and fees.

  • Check Your Loan Balance Regularly

You can check your HELB loan balance at any time by dialing *642# and selecting the balance inquiry option. This allows you to stay informed about your outstanding loan amount, ensuring that you are making appropriate payments.

  • Plan Ahead

If you are expecting a financial windfall, such as a bonus at work or a business deal closing, consider allocating some of that money toward your HELB loan repayment. Paying off larger chunks of your loan can significantly reduce your balance and shorten your repayment period.

  • Avoid Defaulting

Defaulting on your HELB loan can have serious consequences, including being blacklisted by the CRB, legal action, and additional fines. By staying consistent with your payments, you avoid these negative repercussions.

Frequently Asked Questions (FAQs) about HELB Loan Repayment

  • Can I use a different mobile money platform besides Mpesa?

Currently, Mpesa is the most widely used and accepted mobile payment platform for HELB loan repayment via *642#. However, HELB may offer other payment options through banks and mobile wallets, which you can explore if you prefer different methods.

  • How much should I repay each month?

There’s no fixed amount you must pay each month. However, it’s advisable to make regular payments that are manageable within your budget to avoid penalties. You can check your outstanding balance by logging into the HELB portal or using the USSD code *642#.

  • What happens if I default on my HELB loan?

If you default on your HELB loan, you will incur a monthly penalty of KSh 5,000. HELB may also forward your name to the CRB, which could impact your ability to secure future loans. HELB has the legal mandate to pursue legal action against loan defaulters, which could result in more financial and legal complications.

  • Can I repay a portion of my HELB loan or must I repay it in full?

Yes, you can repay your HELB loan in portions. There is no requirement to clear the full loan at once. However, it’s important to make consistent payments to avoid penalties and reduce the overall balance over time.

  • How do I know my repayment was successful?

After making a payment via *642#, you will receive two SMS notifications: one from Mpesa and another from eCitizen confirming the transaction payment to HELB is successfull. These messages serve as confirmation that your repayment was successful. If you don’t receive these messages, check your Mpesa balance to ensure the transaction was completed.

Conclusion

Repaying your HELB loan is not only a legal obligation but also a financial responsibility that can have long-term implications on your credit score and future financial opportunities. By using the USSD code *642#, you can repay your loan easily and quickly from your mobile phone, whether you’re in a remote area or an urban center.

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The process is straightforward, secure, and ensures you avoid the hassle of bank visits or internet-dependent methods. Be proactive with your loan repayment, and by following the steps outlined in this guide, you’ll not only fulfill your financial obligations but also support future generations of students in Kenya. So, if you haven’t already started repaying your HELB loan, dial *642# today and take control of your financial future!

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