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How HELB Can Send Money Directly to M-PESA

  • BY waceke
  • August 31, 2024
black university student on phone

The Higher Education Loans Board (HELB) in Kenya plays a vital role in facilitating access to higher education by providing loans to students. Over the years, HELB has evolved to keep pace with technological advancements, enhancing how it disburses funds to beneficiaries. One of the most significant advancements is the integration of M-PESA, a mobile money service by Safaricom, which allows students to receive and manage their funds conveniently. This article delves into how HELB can send money directly to M-PESA, offering a comprehensive guide on the process and its benefits.

The Integration of HELB and M-PESA

The collaboration between HELB and M-PESA has revolutionized how students access their loans. By leveraging M-PESA’s widespread use and reliability, HELB ensures that students can receive their funds quickly and securely. The process involves using the SurePay system, which acts as an intermediary between HELB and the M-PESA service. This integration has made it possible for students to access their upkeep funds without the need for a bank account.

How the Process Works: From HELB to M-PESA

Once a student’s loan application is approved by HELB, the disbursement process begins. Here’s a step-by-step breakdown of how the funds are transferred from HELB to the student’s M-PESA account:

  1. Notification of Disbursement: After HELB has processed and approved your loan, you will receive an SMS notification from SurePay. The first message typically reads, “Hi ****, welcome to SurePay. You have been added as a Beneficiary by Higher Education Loans Board.” This message confirms that you are now part of the SurePay system and eligible to receive funds.
  2. Funds Credited to HELB Mpesa Wallet: Shortly after, you’ll receive a second SMS from SurePay indicating the amount that has been deposited into your HELB Mpesa Wallet. The message might say, “You have received Ksh. ***** from Higher Education Loans Board for Upkeep. New balance is Ksh. *****.”
  3. Accessing the Funds via USSD Code: To withdraw these funds to your M-PESA account, you need to dial *642# on your phone. This USSD code is specific to SurePay and allows you to interact with your HELB Mpesa Wallet.
  4. Register and Set Up Your Wallet: If it’s your first time using the system, you’ll be prompted to register and create a PIN. This step ensures that your wallet is secure and can only be accessed by you.
  5. Withdrawing to M-PESA: Once registered, log in by dialing *642# and enter your PIN. Navigate to the “Withdraw Funds” option and select “Upkeep.” Enter the amount you wish to transfer to your M-PESA account, confirm the transaction by entering your M-PESA PIN, and the funds will be transferred.
  6. Confirmation: After the withdrawal, you’ll receive a confirmation SMS from M-PESA indicating that the funds have been successfully credited to your account.

Benefits of the HELB-M-PESA Integration

The ability to receive HELB funds directly into an M-PESA account offers numerous advantages:

  • Convenience: Students no longer need to visit banks or ATMs to access their funds. M-PESA allows them to manage their finances directly from their mobile phones, anywhere, anytime.
  • Security: M-PESA is known for its robust security features. By using a PIN to authorize transactions, students can be confident that their money is safe.
  • Efficiency: The disbursement process is swift, ensuring that students have timely access to their upkeep funds.
  • Accessibility: M-PESA is available across the country, including in rural areas where banking services may be limited. This means students in remote areas can still access their funds without difficulty.

Challenges and Considerations

While the integration of HELB with M-PESA offers numerous benefits, there are a few challenges and considerations:

  • Network Issues: Like any mobile service, M-PESA is dependent on network coverage. Students in areas with poor network reception may experience delays in receiving their funds.
  • Transaction Limits: M-PESA has daily transaction limits, which may be a concern for students receiving large sums of money at once. It’s essential to be aware of these limits to avoid transaction issues.
  • Potential Fraud: Despite M-PESA’s security features, there is always a risk of fraud. Students should be vigilant and avoid sharing their M-PESA PIN or personal information with anyone.

Managing Your HELB Funds

Once you’ve successfully withdrawn your HELB funds to your M-PESA account, it’s crucial to manage the money wisely. Here are some tips:

  • Budgeting: Create a budget to ensure that your funds last throughout the semester. Prioritize essential expenses like rent, food, and learning materials.
  • Saving: Consider saving a portion of your funds in M-PESA’s savings platforms like M-Shwari or KCB M-PESA, which offer interest on deposits.
  • Avoiding Impulse Spending: With easy access to your funds via M-PESA, it’s tempting to spend impulsively. Stick to your budget to ensure your money is used for its intended purpose.

Conclusion

The partnership between HELB and M-PESA has transformed how students in Kenya receive and manage their loans. By sending money directly to M-PESA, HELB ensures that students have easy and secure access to their funds, making the process more efficient and convenient. As a student, understanding how to navigate this system is crucial for managing your finances effectively. With the right approach, you can make the most of your HELB loan and focus on your studies with peace of mind.