SFA is an educational loan company that operates in Nairobi, Kenya with plans to expand across Africa. SFA partners with leading educational institutions to provide its students and families with credit to finance school fees. SFA aligns incentives across all participants – the student, the family/guardian, and the educational institution – to ensure the student’s success, both during the educational program and in her post-graduate career.
Very few educational loan programs exist in Africa today. Tertiary institutions sometimes offer installment plans where students and parents/guardians are required to pay school fees before the term finishes, and often before they sit for exam. This process can be stressful and complicated. While trying to focus on studying, students are worried about how they will pay for their next term and parents worry as well. Parents/guardians and students desire a loan solution that makes paying for higher education more pocket friendly and less stressful.
SFA offers loans that simplify the process and make paying for tuition fees much easier, and less stressful.
Here are the steps:
Students and parents/guardians apply for a loan from SFA for a 12-month period. SFA approves that loan.
SFA disburses the loan to the educational institution for term 1.
Payments are made to SFA each month while the student studies.
If payments are made on time, and the student performs well in school, SFA then disburses the fees for the following term.
The cycle repeats itself. Loan renewal can happen for the following years with a potential for reduced interest rate and a longer repayment period.
SFA lends to the parents/guardians (primary borrower) of the student who is accepted and to the student(co-borrower). SFA requires that each student borrower have a parent or guardian who acts as the primary borrower on the loan (this policy can change if the student is a graduate student). Both parties undergo a full credit evaluation administered by SFA and, both parties must be individually approved for the loan to be approved.
Currently, students and parents must access the application through the website. If you have questions, please send a WhatsApp to +254 705 386 363 with your name, school attending, and ID number.
SFA lends to students entering their second year or above. SFA offers students and parents/guardians loans that are declining balance with an interest rate of 4% per month. SFA also charges a 1000 KES application fee, and an 8% origination fee.
SFA lends up to 70% of the required amount for attending the institution. Borrowers are provisionally approved for a year. If the borrowers make on time payments, the loan can be renewed for subsequent years.
SFA disburses loans on a term basis directly to the institution. Borrowers are required to make monthly principal and interest payments directly to SFA during each term. When monthly payments are met, SFA then disburses payment for the next term. For example, in universities, school fees are paid to the institution on a trimester basis. When the borrowers make the required payments to SFA on time, SFA then releases the next trimester payment.
Because SFA lends only 70%, the student and parent/guardian are required to pay the remaining 30% to the educational institution. Please check your sales document for your school’s specific plan.
No. SFA understands that collateral requirements are a barrier for many potential borrowers across sub-Saharan Africa and seeks to rely on other methods, such as a cosigner, to facilitate financial access.
While the student is in school, the student and the primary borrower must make agreed payments on the 5th calendar day of each month. In Kenya, digital payments are required using MPESA to PAYBILL NUMBER 901604. In other countries, students make arrangements with SFA to send the funds directly.
Borrowers who are 5 days late on any payments will be charged a 2.5% fee on the outstanding balance. When payments are over two months late, educational partners are required to remove the student from class. Borrowers who are 90 days late will have their names sent to the credit reporting bureau.
If you have any questions about the above questions, please send a WhatsApp to +254 705 386 363 with your name, ID, and school attending.