Students

(1) Subject to the provisions of this Act, a student shall be eligible for consideration for a loan under  this Act if he :-

(a)    is a Zanzibari;

(b)   has been admitted to an accredited higher learning institution;

(c)   has  made a written application in the prescribed form in which shall be included inter alia, the names of the applicant, the applicant’s parents or guardian and the sureties and which when approved by the Board shall prepare the basis of the loan contract, to be known as Student Loan Agreement, between the applicant of one part and the Board in other part;

(d)   is a person who has no financial assistance from any other source or sources to cover the items of cost for which the application is made;

(e)  is continuing student, who has passed the examinations necessary to enable him to advance to the next or stage of study.

(2) The requested course must be in line with the demand of the national development program.

(3) Any student may reapply for the financial loan from the Fund for another session of studies at least if such student has worked for a period of not less than two years.

(4) The Board shall provide financial loan:-

(a)  to students who undergo supplementary examinations upon such terms and conditions as the Board may determine.

(b) to repeating students who repeat the previous academic year subject to the conditions of the Board.  

(5)  The Board shall not provide financial loan to discontinued student unless and until such student makes another application after the lapse of two years.

Loan’s Conditions.

(1) The Board shall in granting loan to eligible student, impose conditions, demand security and require repayment in installments at such times and periods as the Board may determine.

(2) In granting a loan to any student, the Board shall require  guarantors to guarantee any loan granted to a student and in case of any default by the student in the repayment of the loan, any guarantor who has guaranteed any such loan shall automatically and fully be liable to pay to the Board all the loan together with interest accrued from outstanding loan owed to the Board by the student. 

(3) Where a guarantor has been notified by the Board under subsection (2) of this section fails or refuses to repay such a loan together with any interest accrued thereon, the guarantor shall be liable to civil proceedings against him.