TSC Check off Loans Latest Updates
Salaried civil servants as well as teachers hired by the teachers’ employer Teachers Service Commission TSC have a special facility termed as check off loans facility which needs them to keep alert on the latest updates .
TSC check off loans facility is a loan where the company deducts money from employees’ paychecks and sends to the bank.
This special loan is supposed to be repaid in equal monthly payments withheld from your paycheck. Immediately the loan is deducted, all your payments are made to your bank (by cheque) inorder to lower your loans balance.
With those teachers who have gotten a bank loan from one of the regional financial institutions, for example Equity, Kenya Commercial , Co-operative Bank as well as Barclays Bank need to be aware of some important details.about this loan.
Teachers who have used a check-off facility need to be extremely cautious when it comes to repayment of the loan since there are times when this loan will end up subjecting you to three times pay as much in the long term.
What you must understand with this loan
Note that the bank where you took a loan divides the monthly cheque off loan deduction amount in half.
In this case ,this bank’s interest is thus partially offset by this deduction and as a result a smaller share goes towards paying down your principal.
For example if your monthly loan payment is kSh20,000, this means that the bank will clear your loan in the manner indicated here ;
A total of kSh8,000) is used to pay off the principal amount as the KSh12,000 will be used to pay off the bank’s interest.
Individuals who have the above type of loan are supposed to be aware that should be aware that as time moves closer to the end of your loan repayment period, payment of interest amount deduction gradually lowers as your principal amount deduction goes up.
With this loan , also the length of the payback period affects the amount of interest that must be paid on the loan borrowed .
The longer the payback time for a check-off loan,it means that more interest will be paid to the bank.
cheque off loan has a number of challenges as compared to the secured loan facility that requires you personally to deposit the monthly installments.
With the check offs, an indicate may imagine that they have paid off their loan balance but later to be shocked when the bank continues to make demands.
Just Incase your employer i.e TSC fails to send the monthly loan deductions, then the bank is likely to accrue penalties that you would have to pay dearly.
How to avoid such overpayment challenges
It is important to make regular calls or visits to your bank for enquires on the same to ensure that your loan facility is operating without any problems.
![Teachers service commission TSC , a body that plays a key role in the check off loans](https://nationupdates.co.ke/wp-content/uploads/2023/09/images-5.jpeg)
You can also be regularly checking on your monthly deductions on your payslip,
TSC Check off Loans Latest Updates