Why and Terms for Education Loan

To pursue your dreams, sometimes you need to take extra efforts. Growell Consultancy can help you select the right loan provider who can finance your medical study in China. Here are few details about education loan in China:

The borrower can only use the loan for the tuition fees, living expenses for studying abroad with approval in foreign middle schools or universities, and pursuing master’s degree or doctor’s degree, or for obtaining relevant credit certification.

Terms of the loan shall be one to six years, ten years at most (including ten years) according to the actual study and guarantee nature of the borrower.
Loan Currency: Yuan (more currency types will be applied at the appropriate time)

Maximum Limit of Loan
In principle, the maximum limit of loan is not allowed to be over 90% of the total amount of the tuition fees and living expenses of students and accompanying persons.

Interest Rate
Loan interest rate is set according to foreign exchange loan interest rate (floating).

The loan can be guaranteed by mortgage, pledge, third party guarantee, insurance and many other means.

Loan Issuing
The loan can be transferred directly to the accounts of overseas branches of Bank of China, and to the schools or university (college) (for tuition fees) and the student borrower (for living expenses) seperately on customers’ demands.

Repayment Method
In China, repayment may be entrusted to any other person; in other country, repayment may adopt remittance.

Grace Period of Repayment
The lender may give a certain grace period to the borrower, which is limited to period when the student borrower studies in school or university (college) and during which only the interest rather than principal is paid; the educated person shall renew repayment schedule with the lender, i.e. repayment of principal with interest on monthly basis since the second month after the educated person receives graduation certificate. The grace period is 4 years at most.

Required Documents

1.ID card, Hukou book or other originals of other valid residence certificates of the borrower or all parties involved, and valid identity documents of the educated person as well as copies of all proof certification above.

2.Proofs of permanent job and regular income of the borrowers or their family members approved by the lender.

3.Admission letter or enrollment letter issued by the schools or universities (colleges) of the educated person and relevant documents on total amount of necessary tuition fees and living expenses (or relevant proof documents provided by cooperative intermediate institutions) during the study of the students in schools or universities (colleges).

4.As for mortgage (pledge) with assets, valid proofs of mortgage (pledge) objects and statement of commitment and declaration on consent of mortgage (pledge) signed by person with disposal rights (including co-owner(s) of the assets) should be provided. For mortgage object, valuation report should be issued by competent authorities; for pledge object, rights certification; for guarantee by the third party, written documents and relevant credit proof documents on the fact that the guarantor agrees to bear irrevocable joint and several liability.

5.The borrowers, co-repayers and guarantors shall issue and sign in person written authorization documents in person to allow the bank to inquire about their credit reports.

6.Other proofs or documents required by the lender.