KIGALI - Beneficiaries of the Student’s Financing Agency for Rwanda (SFAR) will by the end of this year face stiff penalties should they default in settling their loans.
SFAR Director General, Emmanuel Muvunyi, said the tight measures are aimed at raising more funds to facilitate other students access loans for their education.
“We are setting up various strategies to enable us raise these funds from former beneficiaries. By the end of the year, the agency will fine all those who fail to pay,” Muvunyi told The New Times.
“If the delay is on the part of the employer, then institutions will be fined but if it is on the part of the employee then the same will apply,” Muvunyi explained.
Out of the over 5,000 former students that are supposed to repay the loans, only 12 percent are remitting the money as expected while the others have been notified but are yet to respond, SFAR says.
Loan inspectors from the agency are on a countrywide tour reminding former beneficiaries about this urgent recovery issue.
The Director said a uniform tracking system will be implemented to ensure proper follow up of beneficiaries of this scheme.
A similar system could also be used by other government institutions involved in deducting funds from individuals such as Social Security Fund of Rwanda (SSFR) and RAMA.
“Kenya has used all these measures and they have worked,” Muvunyi said.
SFAR was established by Cabinet on July 29, 2003 as an autonomous agency under the Ministry of Education, Science, Technology and Scientific Research (MINEDUC) to oversee loan disbursements and ensure that those who get the loans pay back.
By end of July this year, the agency had recovered Rwf1.2 billion.