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RBZ appoints financial institutions to manage student loan facility

THE central bank has appointed six financial institutions to administer and implement the proposed Educational Loan Facility for Higher and Tertiary Education Programmes that the government plans to roll out in the coming year.
The Reserve Bank of Zimbabwe (RBZ) announced in a statement Tuesday that it had selected CBZ Bank, Eduloan, Getbucks, NMB Bank, People’s Own Savings Bank and ZB Bank to be responsible for administering student loans when the facility becomes operation.
“The six institutions, together with the Reserve Bank, Ministry of Finance and Economic Development and the Ministry of Higher and Tertiary Education, Science and Technology Development are expected to undertake a comprehensive feasibility study and come up with the most viable operational framework for the student loan facility model,” the RBZ said.
Higher and Tertiary Education, Science and Technology Minister Jonathan Moyo announced in December last year that the government was planning to introduce a loan facility to assist students facing financial challenges.
A similar facility existed soon after Zimbabwe’s independence but collapsed as most students did not pay back to the revolving fund after completing their university studies.
The proposed facility is expected to include checks and balances to avoid recurrence of the challenges that led to the collapse of the previous scheme.Advertisement