By Charles Mkoka
In a significant move aimed at enhancing efficiency in managing student loans, the Higher Education Students’ Loans Board (HESLB) has signed new agreements with key stakeholders, including the National Identification Authority (NIDA), the Registration, Insolvency, and Trusteeship Agency (RITA), and the Credit Reference Bureau. Dr. Bill Kiwia, the Executive Director of HESLB, emphasized that the board’s responsibilities are twofold: disbursing loans and collecting repayments from beneficiaries.
Dr. Kiwia highlighted that the agreements will enable HESLB to track and reach loan recipients more effectively. By collaborating with the Credit Reference Bureau, the board expects to streamline the process of identifying and contacting students who have received loans, ensuring that their information is up-to-date and accessible.
With RITA, the board will benefit from easier verification of vital records such as birth and death certificates, which are crucial for processing loan applications. Dr. Kiwia underscored the significance of this partnership, stating that it will help HESLB achieve its goal of disbursing loans more swiftly, ideally within five minutes of registration.
Regarding the collaboration with NIDA, HESLB aims to gain access to residence address information for loan beneficiaries who have not yet started repaying their loans, particularly those in the informal sector. This move is expected to facilitate more efficient tracking and communication with borrowers.
Dr. Kiwia noted that these agreements are part of the board’s broader effort to improve the loan distribution and collection process. He pointed out that President Samia Suluhu Hassan's directive to ensure inter-agency system integration by the end of the year is a driving force behind these collaborations.
“We will be holding various assessment meetings to review areas of cooperation, ensuring that beneficiaries can repay their loans with ease,” Dr. Kiwia said. He emphasized the commitment to enhancing public services and keeping citizens informed about all developments.
The agreements aim to reach all loan beneficiaries nationwide, particularly those with income. Deusdedith Buberwa, Acting Director General of NIDA, welcomed the partnership, urging Tanzanians with government loans to repay their debts responsibly to support the education of future students.
Edwin Urasa, CEO of the Credit Reference Bureau, discussed the importance of adhering to credit criteria and stated that credit checks will be mandatory before granting new loans. He assured that the credit check process has received approval from the central bank and will soon be implemented.
Frank Kanyusi, CEO of RITA, highlighted that the agency’s role includes registration, insolvency, and trusteeship. RITA’s contribution to the agreement will focus on streamlining the verification of vital records through an integrated electronic system.
Kanyusi revealed that RITA has already verified over 218,000 death certificates and 118,000 birth certificates since June 1 this year, reflecting a 99.5% accuracy rate. The new system is designed to be faster and more secure, enhancing the efficiency of loan services for the public.
These new agreements represent a crucial step in improving the management of student loans in Tanzania, promising to simplify processes for both the board and loan recipients.
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