The Higher Education Students’ Loans and Grants Board (HESLGB) has signed an agreement with Credit Data, a credit reference bureau (CRB), to enable it access records of loan beneficiaries for use in future credit references.
The development means HESLGB loan defaulters risk denting their financial record which would in turn make them ineligible for future loans.
HESLGB executive director Chris Chisoni said the agreement will help to motivate loan beneficiaries to repay their loans.
He said: “If the graduates apply for a loan in future, Credit Data will be able to check their credit record and if they are not good debtors, it may work against their application.”
Chisoni was speaking at the weekend during the signing ceremony at HESLGB offices in Lilongwe.
Credit Data managing director Patricia Mwase said the agreement will increase its database on people’s credit management history.
She said: “At the moment, we are sitting on information of over two million economically active people and this is about half because at the moment there are about five million economically active people who may wish to access loan facilities from financial institutions.”