The interest rate we offer is tailored to you. To understand your potential, we assess variables provided in your application and from external factors. These variables are what makes our credit model unique, ensuring we can offer you the most competitive rates possible, without you needing to provide collateral or a co-signer.
We offer loans with a simple interest rate, which means that interest does not compound throughout the life of the loan. The interest rate is made up of two components: a fixed margin and a base rate. We currently use 3-month LIBOR as the base rate. The fixed margin is a simple percentage between 5.0% and 9.0%. The base rate is a floating rate that will change throughout the life of your loan.
There is also an administration fee of 4% of the loan amount. We fully amortise your administration fee, which means that it is added to the loan amount once funds are sent to your school.
As an example, let’s assume that you take a loan for USD 40,000 and the admin fee is USD 1600. When the funds are sent to your school, interest begins to accrue on the opening balance of USD 41,600.
During each month of your study and grace period, interest is calculated on this opening amount. Once your repayment period begins, the interest accumulated during grace is added to your balance, and any new interest is then calculated on this new opening balance.
We recommend using APR (Annual Percentage Rate) to compare the total cost of a loan across different lenders. APR reflects interest, fees, and the effects of any compounding.