China Bank expanding retail lending
The thrift bank unit of China Bank seeks to tap a new channel for retail lending with the launch of a private college education loan program.
China Bank Savings (CBS) recently launched what it vows to be an “easy and affordable” program—Easi-Funds Student Loan, initially available at National University (NU), a tertiary educational institution owned by the Sy family, which also controls China Bank.
CBS also intends to roll out the same program to other institutions through partnership with other targeted universities.
Under this program, parents can have the tuition fee of their children enrolled in any course at NU financed at flexible payment terms of up to 12 months for a fixed add-on rate of 1 percent per month regardless of term. Payment terms are allowed in three, six and 12 months.
This allows the borrower to tap an educational loan program at a cost lower than the interest rate on credit card borrowings of around 3 percent per month.
CBS has committed to simplify the loan application and waive the processing fee to be “more borrower-friendly.”
Applicants (parents) need to fill out the application form—available at any CBS branch and at NU’s Office of Student Affairs—for submission to the bank with the school’s assessment and other requirements.
“We are excited to launch Easi-Funds Student Loan and to have NU as our partner school. This program will help parents better afford their children’s higher education,” said CBS President Alberto Emilio Ramos.