The FINANCIAL — Student loans are among the most demanded banking products at leading Georgian banks in Autumn.
TBC Bank, Bank of Georgia and Bank Republic, Societe Generale Group offer different types of loans with different terms.
“Demand for student loans is quite large, especially in January and September, as this type of loan is seasonal. Big interest generally comes from parents in time for the National Examinations and after the results,” said Nino Bujgulashvili, Sales Department Senior Product Manager at TBC Bank.
As Bujgulashvili declares the total amount of budget allocated for student loans is not limited and TBC Bank will issue as much as needed to satisfy demand.
To get a student loan at TBC Bank the individual should satisfy several criteria. To obtain a standard student loan only an ID card is needed and it is eligible for any student above 20 years of age, or any student’s parents, relatives or other third party. However a loan with a grace period in addition requires collateral (real estate) if the amount is greater than 5,000 USD.
“Bank Republic issues special student loans to only Caucasus University students at present,” declared Tata Shavdia, Head of PR and Communications Department at Bank Republic, Societe Generale Group.
The main requirement to receive a loan at Bank Republic is to have stable, monthly income transferred to Bank Republic or to any other bank.
“TBC Bank student loans are devised for Georgian citizens who need to fund their tuition costs for Bachelor’s programmes in Georgia: standard fast student loans, loans with a grace period (CSB, ESM, GAU) as well as for a Master’s Programme (for GIPA students),” declared Bujgulashvili, TBC Bank.
To obtain a Fast student loan the minimum income of the individual should be 200 GEL, the loan amount is between 300-3,000 GEL with a loan disbursement fee of 2% minimum and a loan term from 3 to 12 months.
To obtain a student loan with a grace period the individual is not required to have a minimum monthly income, however real estate is needed as collateral. The loan currency is USD and the maximum amount of the loan is 5,000 USD (100% of a one year tuition fee) with a maximum term of 9.5 years. The loan disbursement fee is 2% of the loan amount, minimum.
Bank of Georgia
Bank of Georgia offers three types of student loans: momentary student loans, student loans for higher education and student loans for studies in foreign countries.
Momentary student loans are available for all students within 15 minutes, the only document needed is the ID of the borrower. Collateral is not requested by the Bank, the amount of money is between 200-4,500 GEL and the term is 3-12 months. Student, family member or relatives between the ages of 20-60 with a minimum monthly income of 150 GEL can take out the loan.
Student loans for higher education in Georgia are of two types with and without collateral. The loans which require collateral are of a maximum term of 7 years, with a loan amount of tuition fee and constraint according to the study programme: MBA or BBA up to 3rd course. The maximum loan amount without collateral is 6,000 GEL with a 2 year term, and only for MBA students.
Student loans for studies in foreign countries are set according to a study period, for a one year programme the maximum amount is 10,000 USD while for a 2 year programme it is 15,000 USD.
There are several constraints when getting a loan, only students going to those universities which are listed in the Top 100 MBA in the latest rating of the Financial Times are accepted. Moreover, only MBA and Phd (Economics, finances, jurisprudence) students will be financed. When using the student loan, an individual will be given the following banking products and services: debit card, mobile-banking, internet-banking, telephone-banking and automatic transactions.
Bank Republic offers Student Loans to Caucasus University students with special terms. The loan terms are as follows – interest rate 19% fixed and monthly payment depends on the disbursed loan and borrower’s income amount. As for the collateral – if the borrower’s income is transferred to BR then no collateral is required. In other cases automobiles or real estate can be pledged. The salary amount of the individual should be minimum 200 GEL.