Loan Recovery
According to the existing records at the National University of Rwanda and the Ministry of Education headquarters, students started receiving loans from the Government in the early 1980s up to now. The loan recovery mechanism labors to oblige whoever received a loan from Government in order to able to undertake higher education studies to pay back the amount having a value of the same amount at the time he/she received it.
This repayment mechanism is a system put in place by the Government to facilitate all those who benefited from the Government loans for higher education to pay back. Paying back has been simplified in order to give opportunity to all those that benefited from it to pay back with minimal difficulty.
The following are some of the user friendly steps and useful information in paying back:
- Loan beneficiaries will be required to collect a loan certificate from SFAR indicating that she/he received a student loan and specifying the actual amount. This certificate will be requested for by any prospective employment application dossier. Upon satisfactorily securing employment, the employer will notify SFAR of a new employee who obtained a student loan. SFAR will then advise the employer on how much to be deducted from the employee's monthly salary as loan repayment until repayment is completed. This will be a gradual deduction. The deducted amount will be paid directly by the employer to SFAR account. The rate of deduction will at all times be in accordance with the legal framework governing the loan scheme.
- Individual voluntary repayment by the former beneficially himself/herself is another option. This may be done once or gradually until the total loan is fully paid. This is especially applicable to self employed debtors whose earnings cannot easily be accessed by any other authority. Employers are legally obliged to provide information about changes in the job status and salaries of SFAR debtors. The law governing SFAR stipulates the penalties to employers and debtors who fail to observe any of its provisions.
SFAR Loan Recovery accounts will be opened the BNR and in other commercial banks such as BK, BCR, ECOBANK, COGEBANQUE and FINABANK in order to facilitate the debtors who reside in different parts of the country to pay their loans easily.
SFAR will share information on institutions that have databases related to the SFAR-database for the loan recovery purposes. Such institutions include but not limited to CSR, RRA, MIFOTRA, MINECOFIN and Professional Associations such as (Lawyers, Medical Doctors, and Engineers). Upon graduation/termination of studies (whichever will come first), beneficiaries will be required to notify SFAR about place of residence and or job status.
Upon satisfactory completion of payment of the entire loan, SFAR will issue a loan completion certificate of application. This will be presented to any employer to certify that the holder does not have any outstanding loan awed to SFAR. It will also act as a certificate of cooperation with SFAR in the struggle to establish a fund that can reliably support our nationals in pursuit of higher education
LOAN RECOVERY DOCUMENTS
