Dar es Salaam — The CRDB Bank has introduced a new service that specifically targets students in various higher learning institutions.
Known as 'Boom Advance,' the service will avail advance payments to students whose study loans have been delayed for some reason or other.
The word 'Boom' is common among university students especially those who receive loans from the Higher Education Students' Loans Board (HESLB).
'Boom' is used to denote the amount that students receive in HESLB loans as meal and accommodation allowances.
"For a long time, we have been looking at how we could find a lasting solution to this challenge which affects students academically," said the CRDB Bank's head of Consumer Banking, Mr Stephen Adili.
He was speaking during a 'CRDB Bank-TOT Bonanza' that involved university students at the weekend.
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He said 'Boom Advance' loans will be issued through digital channels via the commercial bank's SimBanking App.
Doing so will simplify the loans issuance process whereby students will not be required to visit a bank branch to seek the services.
Students will only be required to be a beneficiary of HESLB loans and also be registered under CRDB's 'Digital Disbursement System.'
Qualifying students will receive interest-free loans ranging from Sh40,000 to Sh120,000.
The money will be repaid in a period of 45 days.
"This period considers the fact that, in a period of 45 days, a student would have received a new loan from HESLB. The money will be repaid as soon as the loan from HESLB is received in a student's account," he said - noting that a student may also decide to settle the CRDB loan through other means without having to wait for HESLB loans.
This is a second improvement by CRDB on issues pertaining to students. Recently, the Dar es Salaam Stock Exchange-listed lender digitised its Scholar Account to enable students to access TemboCard, SimBanking, Internet banking and CRDB Bank Agents.