All You Need to Know about Repayment Options for Your SRLF Loan
The Student Revolving Loan Fund’s (SRLF) mandate is to provide loans to eligible Barbadians according to specific conditions. Each beneficiary is given a moratorium on repayments during their study and the grace periods. Thereafter they are required to immediately start making repayments.
The handover of a student borrower’s account by the Loans Department to the Credit Unit occurs at the start of each borrower’s repayment stage. Consequently, this unit is charged with the responsibility for maximizing the collection of the SRLF’s receipts to assist the organization in remaining a self-financing entity.
The Finance Manager has the ultimate responsibility for the unit but it’s daily operations are managed by the Senior Collection Officer, who supervises three (3) Credit Officers and a Clerk/Typist, as well as liaises with five (5) attorneys engaged by the SRLF to collect chronic debt. We have provided some useful information below on the repayment of SRLF loans.
1. The repayments options below are available to debtors:
- The SRLF’s office
- Salary Deductions
- Credit Cards
- Debit Cards
- Draft/Cashier Cheques
- Personal Cheques
- International Postal Money Orders
- Wire Transfers (Barbados National Bank or Royal Bank of Canada)
- Standing Orders
- Post Office – All branches
- SurePay
2. Consequences of default are as follows:
- The In-house arrears procedure is initiated against borrowers whose account are in arrears, this is carried out in the form of three (3) demand letters which is normally completed in there (3) months.
- If you fail to pay as stipulated by the three (3) warning letters, the SRLF has the following options:
- The SRLF will require you to immediately repay the entire unpaid amount of your loan.
- The SRLF may sue you and your sureties.
- The SRLF will require you to pay reasonable collection fees and costs plus court costs and attorney fees.
- You will lose eligibility for loan deferments.
3. Repayment Accommodations
There are a variety of options and approaches available to borrowers, in order to provide them with the best method possible despite their particular circumstance. The repayment options available are as follows:
- Amnesty - Loan has reached maturity date and still has an outstanding balance.
- Interest Relief - Loan in repayment with high arrears but debtor desirous of clearing balance within three (3) to six (6) months (Subject to Management Approval).
- Forbearance - Allows for you to pay the principal portion of your monthly instalment for a short period, in lieu of full instalment payable. This kind of debtor is ineligible for a deferment as their account is in arrears and is subject to a compliance review.
- Deferment - Borrowers not in arrears who provide evidence of further studies, economic hardship or unemployment will be allowed for a specific period to pay only the interest portion of their monthly instalment.
- Graduated Payment Plans - Debtor pays a lower monthly repayment for a specific period without causing the loan to go into arrears.
4. Insurance on Student Loans
There is an insurance component written into your loan agreements, which covers death or disability. You are required to provide upon the occurrence of the foregoing the following:
- Evidence certifying that you are permanently disabled or medically unfit for work must be submitted along with a claim to our insurers. This must be done within three (3) months after medical certification. The insurance company will pay your loan instalment up to a maximum of six (6) months in the event of a short-term disability and will pay out the full loan amount for those deemed medically unfit to resume work.
- A family member and/or other representative must submit a Death Certificate and Registration of Death to confirm the borrower’s death. This must be done within three (3) months.