Learning institutions and parents in need of equipment to enable their children access lessons on e-learning platforms can now benefit from a new funding line announced by Absa Bank.
“We understand that you might be going through a tough time and we would like to continue working with you to support your institution’s activities during and beyond these extraordinary times,” Absa Bank Kenya managing director Jeremy Awori said.
The Covid-19 pandemic forced the closure of schools two months ago, prompting the government to recommend virtual learning.
But this has been hindered by lack of the supporting infrastructure like laptops, tablets and smartphones for bothe teachers and learners.
Absa's new initiative will assist schools to procure e-learning infrastructure including the hardware and software. The bank will provide finance for parents to purchase laptops for their school-going children.
The lender has also reviewed its credit terms and is offering several relief options to cushion schools from the financial difficulties associated with Covid-19.
The options include restructuring of existing loan repayments such that schools can request to reorganise existing facilities in line with their expected cash flows. Under this option, the institutions can get loan repayment holidays or reduce their monthly repayments.
There is a recurrent business expenditure loan under which the bank offers a short-term financing option to help schools cater for their recurrent expenses such as salaries. Under this arrangement, schools can access up to Sh10 million in unsecured overdrafts and short-term loans.
Parents can also pay school fees using their Absa credit cards and clear the outstanding credit card balance in equal monthly instalments of up to 12 months.
“Due to the prevailing economic conditions, some of our customers, through no fault of their own, are struggling to meet their financial obligations.
"We would like to continue working with them through our various payment relief options as well as the reviewed credit opportunities to provide the much-needed continuity during this period.” Awori added.
