Tertiary Education: Loan at 7.9% Interest for Students

Interestingly, this loan is not subject to any application resource conditions. Indeed, the new plan focuses on parental guarantee. The applicable interest rate is 7.9%, only 3% higher than the interest rate ('Repo Rate'). The repayment of the loan will begin one year after the student has completed his studies. Another feature of this plan: part of the risk of failure (20%) is guaranteed by the State. This program also extends financial support to those who intend to pursue courses part-time or distance.

12 banks stakeholders for the 'Student Loan Scheme'

To facilitate students' access to loans, a system of bank loans guaranteed by the government was established for all students who want it.

A total of twelve banks of the country (except text) responded positively to the call of the government, following the personal intervention of Prime Minister Navin Ramgoolam, during negotiations between the Finance Ministry and the Mauritius Bankers Association ( MBA) last year. "The aim", said the Prime Minister repeatedly, "is to ensure that every child in this country can have a chance to succeed."

According to the latest figures published by the Central Bureau of Statistics, the tertiary enrollment rate is 45%. Over 78% of students attend local public and private institutions, while 22% opted for studies abroad.

The most popular courses include, accounting, computer science, engineering, management and commerce.

Participating Banks

Banking institutions who responded to the government's call to participate in the project are: ABC Banking Corporation Ltd, Bank of Baroda, Bank One, Banque des Mascareignes Ltée, Barclays Bank PLC, Bramer Banking Corporation Ltd, Habib Bank Ltd, Mauritius Post & Cooperative Bank Ltd, SBI Mauritius Ltd, State Bank of Mauritius, The Hong Kong and Shanghai Banking Corporation Ltd et Mauritius Commercial Bank.