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Currently, thousands of university\nstudents from low income families rely on State loans issued by Higher\nEducation Loans Board (Helb) but many more miss out as the agency grapples\nwith cash shortfalls. This is due to\npoor recovery from past beneficiaries and sluggish capitation from the\nexchequer which saw Helb last month warn that over 100,000 eligible students would\ngot without loans in the remainder of the current academic year.<\/p>\n\n\n\n
Through the student loan app,\nusers will also access personal and professional development tools, including\nmentorship, wellness and financial planning.<\/p>\n\n\n\n
\u201cWe\u2019ll\nlaunch it here (Nairobi) in March, around the International Women\u2019s Day (marked\non March 8). We\u2019ve decided that the population we\u2019re targeting will all start\nfrom the same place in terms of credit score. Most of such unbanked girls from\nlow-income households have no credit profile whatsoever and it\u2019s precisely\nbecause of this that lenders often shun them. That\u2019s where we come in. Having\nno credit profile does not necessarily mean you\u2019re a bad borrower,\u201d said\nPizziconi.<\/p>\n\n\n\n
Kenya has witnessed an explosion of digital loans with more than a dozen micro-lenders entering the country\u2019s credit market in response to sky-high demand for quick loans, especially among youths.<\/p>\n\n\n\n
Africa Integras a few years\nago signed a partnership deal with Kenyatta University (KU) to construct a $57\nmillion (Sh5.7 billion) dormitory to house 10,000 students. The project, whose\nconstruction is set to start this year after delays, is expected to ease the\naccommodation squeeze currently experienced at the university. <\/p>\n\n\n\n
Africa Integras, which is\nfocused on developing education infrastructure projects in Africa, says on its\nwebsite that the KU hostel project will include kitchenettes, leisure\nfacilities, cafes and study areas.<\/p>\n\n\n\n
Kenyan career investment\nbanker John Ngumi, who sits on various company boards, is the managing director\nfor Africa Integras East Africa and is in charge of transaction negotiations in\nthe region.<\/p>\n\n\n\n
\u201cAfter the March launch (of the student loan\napp) when we\u2019ll start receiving applications, it will then take six months for\nusers to use a pilot monthly budget and prove their behaviour of their credit\nhistory. So we may not have a credit score from credit bureaus but we can look\nat how users have managed their budgets for the six months and establish\nwhether or not they\u2019re responsible,\u201d said Pizziconi.<\/p>\n\n\n\n
\u201cThe best part is that the app comes with several tiers of support, mentorship, wellness support, meet-ups, as well as support in getting jobs.\u201d <\/p>\n\n\n\n