The Arab African International Bank (AAIB) recently launched its Edu Invest loan programme, which covers up to 100% of students’ tuition fees for different educational stages.
“The Edu Invest programme consists of three types of educational loans. Edu Invest Start-Up is designed to cover the expenses of all academic stages, starting from kindergarten to high school and college stages. Financing tuition fees ranges between EGP 15,000 and EGP 100,000, with loan tenor up to 12 months,” head of assets products at AAIB Mohammed Bahnasawy said.
“Edu Invest Level-Up and the Edu Invest Step-Up fit university education, both undergraduate and post graduate studies, while having different repayment options. Financing tuition fees ranges between EGP 15,000 to EGP 600,000, disbursed up to four years and repaid up to seven years,” he said. “Edu Invest Level-Up enables students to pay a very low monthly instalment covering interest only in the first three years, after which the loan principal is repaid over the next four years”.
“Edu Invest Step-Up allows students to pay lower instalments in the beginning which gradually increases until loan maturity. Parents are given the privilege of choosing between different repayment options that suit their capabilities and expected cash flow”.
Edu Invest loan programmes are granted to students “if they are earning” parents or guardians. In addition, they are provided for approved educational institutions in Egypt, where financed amounts are disbursed directly to the educational institutions according to their payment schemes.
“For example, if a customer had a sanctioned loan of EGP 600,000 and the first disbursement is EGP 100,000, the bank will pay the first amount of EGP 100,000 to the educational institution, and the customer will only bear the interest and the instalment of the disbursed amount,” Bahnasawy said. On the other hand, customers are entitled to not utilise the full sanctioned amount if they do not wish to.
AAIB is expected to launch an option soon that allows continuing the settlement of the outstanding amount and the tuition fees to the educational institutions on the due dates, even in the event of unexpected deaths – during fee payment period – through the availing insurance feature.
Bahnasawy also said Edu Invest loan is a unique programme that aims to provide an acutely needed financial solution and support Egyptians in their pursuit of quality education.