Loan application and Disbursement - Overview
1. Eligibility for applying for loans Only students eligible for applying for student loans can apply for loans. Articles 4 and 5 ofthe Ministerial Order nº 002/08 of 03/09/2008 specify the students eligible for applying for the Government loans. 2. Filling Loan Application Forms (LAF) Eligible students are provided with LAF's to complete. Articles 6 and 7 of the Ministerial Order set out the process of applying for the loan. 3. Signing the loan contract A student who has been granted a loan is requiredto sign a loan contract with SFAR. Article 10 of the Ministerial Order gives the details of the contract. 4. Applicants who are not granted the loans A candidate who has failed to get a loan has the right to appeal in writing against that decision. This appeal is examined by SFAR Board which takes a final decision and notifies it to the candidate within a period not exceeding one (1) month. 5. Loan amount and management A student receives a specific loan amount for the purpose of the studies and for the duration ofthe studies. Articles 13 and 14 of the Ministerial Order give the details of the amount of loan and the mechanism of disbursing it.
Financial Means Testing (FMT)
A Government loan is granted to only academically able BUT financially deserving students. Not alleligible students will automatically be granted the loan. The Financial Means Testing [FMT] Mechanism is used to determine the students who are unable orable to meet part or all the cost of their studies.
The FMT is based on a number of factors including the students and/or parents level of income. The outcome of the Means Testing generally depends onthe information provided on the Loan Application Form (LAF) by the loan applicant. SFAR has developed unique electronic Means Testing software to ensure efficiency and equity in the loan processing activity.
Sources of funding
SFAR has the following sources of funding: - - Government budget available annually for loans to students in local and foreign institutions of higher learning,
- - Recovered loans,
- - Grants and loans offered by bilateral and multilateral support programs.
Past loan beneficiaries
The Student Financing Agency for Rwanda requests all Rwandans who obtained Government loan to study higher education in the past, and who have not yet started repaying their loans to do so immediately.
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