Bank of Saint Lucia has always recognized the importance of education to the development of Saint Lucia and it’s people and continues to invest in the human resource development of nationals through the provision of student loans.
A Bank of Saint Lucia student loan will assist with:
- Boarding and lodging
- Traveling Expenses
- Economic Cost
- Other related educational expenses
Loans will only be considered for programmes that are on the Government of Saint Lucia List of Priority Areas for Manpower Training* and there must be a forecast demand for the skill in Saint Lucia and/or the region. Additionally, the educational institution where the training programme is to be pursued must be accredited.
Applicants will be required to make an equity contribution of 20% towards the total cost of study. Contribution may include financial and other support as well as a commitment to pay interest during the approved study period.
* Please visit the Government of Saint Lucia website www.stlucia.gov.lc or the Ministry of Education for the most recently approved priority list.
A student loan applicant must be a citizen of Saint Lucia who is at least 18 years old and has resided in the country for a minimum of one year immediately preceding the date of application for the loan.
After reviewing this, student loan applicants must arrange an appointment with a Loans Officer at the Waterfront Branch or any other branch, for further information and completion of the Application Form. Applicants are required to bring the checklist items listed below to the interview. The Application Form is completed at the Bank and signed by the applicant or his/her attorney.
Students applying for courses commencing in Aug/Sept are advised to apply on or before June 30th. For courses starting in January, please apply before October 31st of the previous year. Late applicants risk not receiving funds in time for the start of their programmes.
The following are the maximum loan amounts for courses at the following levels:
* Certificates & Diplomas $60,000.00
* Associates Degrees $80,000.00
Studies within the region
* Engineering/Accounting $120,000.00
* Other Degree Programmes $100,000.00
Regional or International
* Law/Medicine/Architecture $150,000.00
* Masters Degree $150,000.00
* Bachelor's Degree (bank's discretion) $150,000.00
In determining the loan amount, the Bank shall take into consideration:
- The cost of the programme of study
- The location of the educational institution
- The student's financial commitments
- The quality of security available
- The student's ability to repay the loan from expected income on completion of study on the terms specified
- The student's equity contribution to the cost of the programme of study
- Interest rate - 8.5% on the monthly reducing balance
- Repayment term -15 years maximum
- Grace Period -The borrower is not required to make any payment towards the principal during the scheduled period of study plus six months thereafter. However, interest will be payable and the total loan may include an amount to cover the interest during the grace period.
- Loan Components -The proceeds of the loan may be used to finance the following costs: enrollment, tuition, books and related cost of materials, transportation, room and board, insurance coverage on the life of the borrower, bank and legal fees and interest on the loan during the grace period.
Student loans are to be fully secured. The Bank accepts the following types of security:
- Mortgage (Hypothecary Obligation) -Taken on land or house and land.
- Second and subsequent mortgages -Taken on property that is already mortgaged to ECFH but has sufficient value to support additional mortgages.
- Cash - Lien on Fixed Deposit or Cash at bank.
- Life Insurance -The Cash Surrender Value of an Insurance Policy can be used as security.
- Guarantors -One Guarantor will be accepted for loans up to EC$4,050 and two for loans from $4,051 to a maximum of EC$16,000. Guarantors should be resident nationals of Saint Lucia, creditworthy, of good financial standing, have a net worth of at least double the amount of the loan and with a steady income.
The following fees are payable:
- Appraisal Fee: 2% of the loan amount
- Risk Premium: 1.5% of the loan amount
- Visa Fees (if property is used as security)
- Enquiry - The prospective applicant collects a Check List from the Bank and arranges an interview with a Loans Officer.
- The Loans Officer interviews the prospective client and completes an Application Form if warranted. The applicant submits documents/information requested on the checklist.
- The Loans Officer appraises the loan request and submits it for approval.
- The Loans Officer contacts the applicant to inform him/her of the decision and arrange (if applicable) an appointment for the signing of the Offer Letter, Agreement, other documents and payment of relevant fees.
- The applicant fulfills the security requirements. If the loan is secured by a mortgage; the loan details are submitted to the applicant's lawyer for preparation of the security documents. Payment of legal-fees for the preparation of the mortgage is usually the responsibility of the client.
- After all the security documents are in place and the bank Fees are paid, the disbursement process begins.
Following the loan approval, the client and the person(s) securing the loan (sureties), visit the Bank to sign the Offer Letter, Loan Agreement and other documents. The time between approval and disbursement of the loan can vary depending on the client ability to provide the bank with all the relevant pre-disbursement requirements. These include:
- Registered mortgage or Letter of Undertaking from lawyer, if the loan is secured by property
- Acceptance of guarantors by the Bank
- Assignment of Life Insurance Policy to the Bank
- Arrangements for the payment of interest during the grace period if interest is not capitalized
- Payment of Bank and legal fees
- Opening an account with Bank of Saint Lucia and signing up for an International Debit Card and Complete Online Banking
The bank requires at least two days notice prior to processing of disbursements. Funds for books and boarding are credited to the customer's account which can be accessed through their debit card. On an annual basis, the Bank pays tuition and examination fees to the institution via bank draft, cheque or telegraphic transfer. Transcripts/results providing evidence of successful completion of the academic year/semester are required prior to the disbursement of additional funds.
Clients or their attorneys are required to sign at the bank acknowledging receipt of each disbursement.
- Original or certified copy of birth certificate
- NIS number
- Picture ID
- Certified copies of school certificates and diplomas
- Acceptance letter from the educational institution
- Official school transcript (for applicants already attending institution)
- Two character reference letters at least one from previous school or employer
- Job letter
- Evidence of parents/guardians income
- Evidence of scholarship, financial or other support
All loans shall be fully secured. Any one or combination of the following documents are required depending on the type of security being used for the loan:
- Property - two copies of Land Deed; two recent copies of the Land Register for the property to be used as security; and Comprehensive Insurance over dwelling house. A valuation of the property done by one of the Bank's approved valuators (list available at the Bank) is required. Only valuations prepared within the last three years will be accepted.
- Guarantors - completed statements of affairs from each guarantor
- Cash - fixed deposit certificate or evidence of cash to be used as security
In addition to the security provided the client is required to assign the Bank a life insurance policy for at least the amount of the loan. Please note that the policy must not lapse or be cancelled during the disbursement and loan repayment periods.
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