If you studied at a public university in Zambia with HELSB funding, you have a student loan to repay after graduation. The Higher Education Loans and Scholarships Board (HELSB) provides loans to cover tuition fees, registration fees, accommodation, and student allowances (meals, books, projects) - and repayment begins 12 months after you complete your studies.
This guide explains how the repayment works, what the current terms are, and how to calculate your monthly instalment. You can also use our HELSB loan calculator to see your exact repayment schedule - or switch to the Estimate mode to estimate your total loan based on your university, programme, and sponsorship level.
Current loan terms
As of 2026, HELSB student loans carry these terms:
Term | Detail |
|---|---|
Interest rate | 10% per annum (reduced from 15% in January 2024) |
Maximum repayment period | 10 years (120 months) |
Grace period | 12 months after graduation |
Repayment method | Standard amortisation (equal monthly instalments) |
The 2024 rate cut: The interest rate was reduced from 15% to 10% per annum effective 1 January 2024, following a Ministerial statement by Hon. Douglas Syakalima. This significantly reduces the total amount graduates repay.
How repayment is calculated
HELSB uses standard loan amortisation - the same method banks use for personal loans. Your monthly payment stays the same throughout the repayment period, with early payments covering more interest and later payments covering more principal.
The formula
The monthly instalment is calculated using:
Monthly payment = P x r / (1 - (1 + r)^-n)
Where:
P = loan principal (total amount borrowed)
r = monthly interest rate (annual rate / 12)
n = number of monthly paymentsWorked example
Let's say you received K50,000 in HELSB funding over your degree and are repaying over 10 years (120 months) at 10% per annum.
P = K50,000
r = 10% / 12 = 0.8333% per month
n = 120 months
Monthly payment = 50,000 x 0.008333 / (1 - (1.008333)^-120)
Monthly payment = K660.75Over 10 years, you would pay a total of K79,290 - meaning K29,290 in interest on top of the K50,000 principal.
Repayment at different loan amounts
Loan Amount | Monthly Payment | Total Repaid | Total Interest |
|---|---|---|---|
K20,000 | K264.30 | K31,716 | K11,716 |
K30,000 | K396.45 | K47,574 | K17,574 |
K50,000 | K660.75 | K79,290 | K29,290 |
K75,000 | K991.13 | K118,936 | K43,936 |
K100,000 | K1,321.51 | K158,581 | K58,581 |
All figures assume the maximum 120-month repayment period at 10% per annum. Shorter repayment periods reduce total interest but increase monthly payments.
The grace period
After completing your studies, you have 12 months before repayment begins. This grace period is designed to give you time to find employment.
Interest-free window: If you settle your full loan balance within the one-year grace period, you will not be charged the 10% interest. Interest only applies once you enter the standard repayment period.
Repayment methods
HELSB offers three ways to repay:
Monthly Deduction Method (MDM) - your employer deducts the instalment from your salary and remits it to HELSB, similar to PAYE. This is the standard method for employed graduates.
Offset Method - you settle the full outstanding balance in a single payment. Interest is charged only up to the month of settlement, saving you all future interest.
Ad hoc Payments - extra payments on top of your monthly instalment. These go directly to reducing principal and do not attract additional interest, shortening your repayment period.
Payments are made to the HELSB Revolving Fund Account at Zambia National Commercial Bank (ZANACO). Self-employed graduates remit directly to HELSB.
Loan insurance
All HELSB student loans are insured under Section 32 of the HELSB Act. The insurance premium is borne by the loan beneficiary. If a student dies, the insurance policy settles the remaining loan balance, ensuring the family is not burdened with the debt.
What happens if you do not repay
HELSB has enforcement mechanisms for graduates who do not repay:
Employers can be directed to deduct repayments from your salary
Your name may be listed on the Credit Reference Bureau as a defaulting debtor, affecting your credit score
The debt is recoverable as a civil debt - HELSB can take legal action
If you are outside Zambia, HELSB can request the Zambian mission in your country to assist in recovering the funds
It is better to contact HELSB directly if you are struggling to make payments. They may be able to adjust your repayment terms.
To see how HELSB repayments affect your net salary, read HELSB repayment and your take-home pay. If you are a prospective student, see How to apply for a HELSB loan.