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 Rumbidzai Ngwenya Features Writer
Soon after the unveiling of an educational loan facility that was meant to support students in colleges and universities, parents immediately made their way to the banks with hope and excitement. But many were met with disappointment. The conditions set by the banks to access the loans were just too stringent.

Above other conditions, banks require that the parent or guardian’s salary should come via the bank.

If not, the applicant is then required to open an account with the bank and have his or her salary come through the bank for at least three months before one is eligible to apply for the loan. This means that parents and guardians have to change banks in order to access the loan.

The process is cumbersome and this left the hopes of most parents shattered.

In order to apply for the loan, parents and guardians have to face the dilemma of opening new accounts, and many have said it is impossible.

“The requirement is preventing us from acquiring the much needed loans,” said Clemence Mufundisi, who also could not qualify to apply for the loan at the banks for his first year niece at a teachers’ college.

“I have been using (name withheld) bank and I have other payments that still need to be paid for the next 24 months,” he said.

“I also have an insurance policy with the bank so for me it is impossible to change my bank.”

For the past week, Mufundisi has been in and out of the banks trying to get a loan but nothing positive came out of it. He later learnt about another financial institution that does not discriminate about the bank one uses.

Although the institution also required proof of salary, which he luckily had, he managed to apply for the educational loan.

Within days it was approved.

For him it became a problem that one financial institution did not discriminate about which bank one uses and still managed to get a loan while the bank failed to do the same.

For students without parents and guardians who cannot provide proof of salary and who are in dire need of financial assistance, all hope is lost again.

As much as the Government gave a directive that institutions would serve as guarantors to these students, the banks and financial institutions are making it impossible.

Banks specifically require “only account holders to that specific bank who receive salaries through that bank to access the loan.”

This makes it impossible for many students to access the loans.

The Minister of Higher and Tertiary Education, Science and Technology Development, Prof Amon Murwira recognised bank conditions but also encouraged them to find ways to assist students while pursuing their commercial interests.

“Banks are commercial entities, and as a country we have to know when we say ‘Zimbabwe is open for business’ what we mean,” said Prof Murwira.

“Banks are not a social welfare fund; they have their terms and conditions which are important to study.

“They are also entitled to safeguard themselves from fraudulent activities. But I hope the banks do not make it hard because as a nation we have to be of service and their service is to make sure our students get the financial assistance they need,” he said.

Prof Murwira also advised parents and guardians who were struggling to apply for loans at local banks to find other financial institutions that are offering conducive conditions.

“If the bank has harsh conditions people should change for the convenience of the students,” said the minister.

“Eduloans is coming big time to Zimbabwe to serve and if local banks continue like this, Eduloans will take the business.

“We will then not expect local banks who are failing to serve our students to complain,” he said.

The minister also directed all institutions and colleges to assist students in acquiring the loans by making required formalities on behalf of the students.

“I am emphasising that institutions should get out of the old mode where students are left out to see what they can do on their own, to a new mode whereby we are saying our students are the master,” said the minister.

“Colleges should collect the forms from financial institutions so that students have a one-stop-shop. Many students may not even have the know-how of accessing loans at the banks,” he said.

Murwira also said the ministry and institutions were there to serve hence were mandated to ensure students were assisted.

“When students come they should be served since our jobs is students.

“Without them we would not have any ministry nor institutions to run. So since our jobs are students our actions have to show that we are for students,” he said.

According to the minister, availing educational loan facility was not only what his ministry was set to do but also to ensure mechanisms were put in place to cater for all students in need of financial assistance.

“When things are shifting from a certain mode of thinking to another mode there are likely to be a bit of hitches but it should not take us long,” said Murwira.

“We are doing operationalisation and that is when we will see what works and what does not, possible and impossible, but at the end we will achieve our goal.

“Education activists have since called for better mechanisms in favour of Zimbabwean students. My ministry is going to perfect the educational loan facility,” he said.

Zimbabwe National Students’ Union (ZINASU) advisory board member, Makomborero Haruzivishe feared that the majority of students who were meant to be assisted with the loans were left vulnerable.

“Considering that unemployment figures are high and our economy is now largely informal, the proof of payment condition makes the loans a myth,” said Haruzivishe.

“Where would unemployed people get a valid payslip or proof of consistent income flow? Students who are from disadvantaged economic backgrounds cannot access these loans because of this guarantor requirement. Yet they are the ones who are in need of the loan facility.”

He called on the ministry to review the loan structures in order for it to serve the purpose it was meant for.

“The ministry should create an all-inclusive platform with the ZINASU leadership and Students Representative Councils where the reviewing of the loan structure is done to be easily accessible for all students especially the underprivileged,” said Haruzivishe.

Most students say if the situation remains like this, the educational loan facility will fail. People need their confidence renewed when it comes to educational funding.

Parents are still smarting after they lost money invested with local financial institutions as education investment during the economic meltdown around 2008.

Thus a model needs to be developed that is practical for the majority of students and parents who dominate the Zimbabwe populace who are the underprivileged and in the informal sector.