TSC Update To Teachers Having Check Off Loans. All instructors having check-off loan facilities have been asked by the Teachers Service Commission (TSC) to make sure they are always awake.
Keep in mind that a check of loan facility is a loan that is granted to an educator and needs to be paid back in equal installments each month, as specified in the educator’s pay.
The aforementioned amount that is withheld is then promptly deposited (by check) into your bank to reduce the balance of each teacher loan.
TSC consistently maintains that instructors handling bank loans from any of these regional financial institutions—Equity Bank, KCB Bank, Co-operative Bank, Barclays Bank, and others—should constantly be cognizant of certain crucial information.
Important details on loan repayment
Note that when it comes to these loans repayment , individuals who have used a check-off facility loan in which the company deducts money from employees’ paychecks and transfers the same to the bank, then these teachers must be extremely cautious.
Inorder to have a teacher not becoming a victim and end up repayment of the loan three times or more in the long term, the commission TSC always has asked teachers to ensure tracking of their records on a regularly basis.
For those teachers with check of loans,note that their banks divide the monthly cheque off loan deduction amount in half.
With this, Part of the share deduction is transferred to the bank’s interest as remaining smaller share goes towards paying down your principal that is catered for.
Example of check of loan facility deduction and repayment
Just incase you have your monthly loan payment at Sh20,000, the guide below shows how the bank will clear your loan :
A total of Sh8,000 will be used to pay off the principal amount
KSh12,000 will used to pay off the bank’s interest.
For those teachers who have the check of loans, it is important to be aware that as time moves closer to the end of your loan repayment duration,the interest amount deduction equally gradually lowers.
As a result, repaid principal amount deduction grows too.
N/B: The longer the length of the payback period for the check of loans, then then more the amount of interest is normally paid on the loan to the bank.
Current Disadvantages of check of loans
It is possible for one may think that they finished paying off their loan balance only to be shocked later when realizing that the bank continues to make demands.
There are some situations where your employer for example TSC fails to send the monthly loan deductions, then in this situation the bank where you borrowed the loan will accrue penalties that you would have to pay them dearly.
Be advised that in order to ensure your safety, it is imperative that you establish a regular of calling or visiting your bank to inquire about this vital loan.
TSC Update To Teachers Having Check Off Loans
As a TSC teacher, make it a constant concern to make sure your check-off loan facility is operating as needed to guarantee trouble-free servicing.
It is important for teachers to keep an eye on their loan facility deductions by monitoring the monthly check of such deductions on their payslip.
TSC Update To Teachers Having Check Off Loans