TSC TEACHERS CAN NOW ACCESS BANK LOANS USING THE NEWLY ADJUSTED PAYE

TSC TEACHERS CAN NOW ACCESS BANK LOANS USING THE NEWLY ADJUSTED PAYE

In a nutshell

Some banks have started calculating the teacher’s ability to repay loans based on the new tax relief

Tutors who may be interested in applying for bank loans during the Covid-19 period are likely to reap more from the newly adjusted Pay As You Earn, PAYE.

This is after some banks notified their clients via SMS that the issuing of bank loans will be pegged on the new tax relief.

This, therefore, means that teachers are likely to get more money at their disposal for various developmental projects.

In one of the messages seen by our media team, National Bank informs its clients, teachers about its latest move-taking into account the New Tax Relief in lending.

“I am glad to inform you that we are now considering the New Tax Relief in lending. You, therefore, stand a chance of higher qualifications. For calculations and inquiries please contact 07xxxxxxxx,” reads part of the message sent to teachers who bank with NBK.

Other banks such as ABSA gave teachers a three months’ loan break to cushion them against the biting effects of the coronavirus.

TAX RELIEF

Since the President’s announcement of tax relief for various categories of employees in Kenya, teachers have been enjoying slightly higher salaries that are likely to improve their ability to repay and hence qualify for higher loans.

Teachers’ Pay As You Earn, PAYE was consequently reduced following the President’s directive from 30 to 25 percent.

Employees earning a gross monthly salary of less than Kshs 24, 000, on the other hand, are currently enjoying 100 percent tax relief.

The President also suspended the listing of persons in micro or medium enterprises by the CRB whose loan accounts were in arrears or due effective April 1, 2020.