Loans for Civil Servants (2020)

In today’s article, we will discuss the main loans for civil servants offered by the government or its institutions.

We will look at:

  • Who is a civil servant
  • Top loans for civil servants in Kenya

Who is a civil servant?

A civil servant is someone who works in civil service in Kenya. Basically, they are people working in any department of our country’s government.

These servants include teachers, military officers, police officers, governors, county commissioners, chiefs among others.

Top Loans for civil servants In Kenya

There are three major loans that government of Kenya offers to its employees.

These loans include Higher education loans, Mortgage loans, and car loans.

Below, we will discuss each of these loans and how the civil servants are able to access them.

  1. Higher Education Loans

Government employees in Kenya are eligible to access education loans from the higher education loans board in Kenya.

Through this loan, one is able to pursue their masters/post-graduate education as well as any other professional certifications.

Loan features

  • Up to KES 500,000 available
  • The repayment period is 72 months
  • Interest rate is at 5% on reducing balance

Eligibility for this loan

In order to be eligible for this loan, one has to be employed in the following ministries.

  • County governments
  • Parliamentary service commission
  • National police service
  • Government ministries
  • Kenya Prisons

In addition to meeting the eligibility criteria, one has to present the following documents during the application

  • Employer recommendation letter
  • Admission letter from a recognized university
  • Certified copies of ID and KRA pin as well as 2 recent passport size photos
  • certified copies of ID’s of two guarantors who must be civil servants
  • Copies of your most recent 3 month’s payslip

Once you are satisfied that you have all the documents ready, then submit your application through Helb website.

2. Mortgage Loans

A civil servant in Kenya is eligible for a mortgage loan in Kenya. This is possible through the civil servant housing scheme fund.

This fund was founded in 2014 and has refined its operations over time offering the best affordable loans to civil servants.

The Features of civil servants mortgage loans are:

  • One can borrow between 4 million to 40 million depending on the job group of the civil servant
  • The interest rate charged is as low as 5% per annum on reducing balance
  • The loan repayment period is up to 20 years
  • This loan is repaid using the checkoff system in order to reduce administration costs.
  • Only a 10% downpayment is required for you to receive 90% financing

The current mortgage scheme is being managed by KCB as well as the housing finance corporation.

3. Car Loans

Introduced in 2015, these cheap car loans are quite affordable. A civil servant can access between KES 600,000 to KES 10,000,000.

It’s worth noting that the higher your job group the higher the amount of loan you will receive.

The interest loan applicable to this loan is at 3% per annum which is way below the asset financing loans offered by banks.

A good employer always tries to motivate his or her employees. This is what the government of Kenya achieves through these loans.

Conclusion – Loans for Civil Servants in Kenya

The government of Kenya tries its best to provide cheap loans for government employees as discussed above.

It is worth noting that there are other microfinance and banking institutions that also offer loans to civil servants.

Such institutions include Faulu Bank, Equity Bank as well as KCB Bank.

Cases of civil servants losing their money to serving loans they did not take are very common these days. One such case has been with platinum credit loans.

Platinum credit is notorious for erroneously making civil servants service loans they didn’t apply for.

Based on this, it is very important for civil servants to avoid taking loans from just any source.

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