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In todays latest HESLGB News: Higher Education Students Loans and Grants Board (HESLGB) Malawi Approved as Credit Reporting Information Provider. In line with the Credit Reference Bureau (CRB) Act, HESLGB has been granted permission by the Minister of Finance through the Registrar of Financial Institutions as an Information provider in the Country’s Credit Reporting Systems.
With this in effect, former loan beneficiaries who have not repaid their loans within the prescribed students’ loan repayment period will be listed as defaulters in the Credit Reporting System, making it difficult for them to access loans from commercial banks.
Confirming the development, Loans Recovery Director Paul Podornbo stated that the Minister of Finance approved the HESLGB’s request to enhance recovery efforts for unpaid loans, especially from former beneficiaries who are financially capable but have not yet fulfilled their obligations.
“We sought approval from the Minister of Finance to be among the institutions authorised to share Credit data with Credit reference bureaus after observing that some former beneficiaries, who are capable of repaying, have not done so. With this arrangement, defaulters listed in the credit system will face difficulties in accessing credit facilities from commercial banks and other financial institutions,” he said.
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He said the approval, which was granted in 2024, is part of broader efforts to recover funds meant to assist other needy students, as demand for student loans continues to increase each year, stretching the available resources. Podornbo emphasised that repayments are vital because every loan repaid directly funds another student’s education.
In addition to the credit reporting initiative, HESLGB is in advanced discussions with relevant stakeholders to explore the possibility of restricting defaulters from accessing certain public services until they settle their outstanding balances.
“We are engaging different authorities to see how best we can implement this. We want loan beneficiaries to understand that non-payment of a students’ loan not only affects their credit standing but may also limit their access to some public services in future,” Podornbo added.
By Shadreck Kayera