Ulaanbaatar
Students to get interest-free loan
Society
Ulaanbaatar /MONTSAME/ The Cabinet resolved to zero the interest rate of Student Development Loans on February 6. The loan had an interest rate of five percent prior to the decision.
More than 35 thousand students will be able to obtain interest-free loan, which will be repaid after graduation. For instance, a student who took MNT 10 million loan will have to repay MNT 139 thousand every month for six years, which the Cabinet sees is not a heavy financial burden on a medium-income citizen.
In a previous modification to the student loan procedure, the loan’s accessibility was broadened, the number of documents reduced, and application digitalized. However, 40 thousand students could not get the loan due to failure to meet bank requirements including the income status and other loans of the co-borrower and the debt-to-income ratio.
In specific, the banks had a financial source worth MNT 90 billion for student loans, but has granted MNT 5 billion only. Therefore, student loans will be granted through the Education Loan Fund not putting as tough requirements as banks.
Most importantly, students must take and be evaluated in more than 10 courses in a semester in order to apply for the loan. In case of retaking the classes due to unsatisfactory grade, the loan will not cover the cost. Moreover, the minimum grade point required is 2.8 for Bachelor’s degree students and 3.2 for Master’s and Doctoral students.
More than 35 thousand students will be able to obtain interest-free loan, which will be repaid after graduation. For instance, a student who took MNT 10 million loan will have to repay MNT 139 thousand every month for six years, which the Cabinet sees is not a heavy financial burden on a medium-income citizen.
In a previous modification to the student loan procedure, the loan’s accessibility was broadened, the number of documents reduced, and application digitalized. However, 40 thousand students could not get the loan due to failure to meet bank requirements including the income status and other loans of the co-borrower and the debt-to-income ratio.
In specific, the banks had a financial source worth MNT 90 billion for student loans, but has granted MNT 5 billion only. Therefore, student loans will be granted through the Education Loan Fund not putting as tough requirements as banks.
Most importantly, students must take and be evaluated in more than 10 courses in a semester in order to apply for the loan. In case of retaking the classes due to unsatisfactory grade, the loan will not cover the cost. Moreover, the minimum grade point required is 2.8 for Bachelor’s degree students and 3.2 for Master’s and Doctoral students.
MNT 75 billion has been allocated for student loan in the current budget.
Kh.Aminaa
