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● State-subsidized Student Loan
State-subsidized student loan is a RMB loan granted to college students with economic difficulty in the Peoples’ Republic of China (excluding Hong Kong Special Administration Region, Macau Special Administration Region and Taiwan) who have signed a cooperation agreement with ICBC. It can be used for paying student’s tuition and miscellaneous fees and living expenses. It can be divided into tuition and miscellaneous fees loan and living expense loan. The tuition and miscellaneous fees loan is used by the borrowers to pay tuition and other miscellaneous fees to their schools. The living expense loan is used by the borrowers to pay daily living expenses.
☆ Features
The loan is applicable to full-time undergraduate and junior college students (including second bachelor’s degree, higher vocational students, preparatory students, the same below) and full-time graduate students.
☆ Conditions
I. Borrowing conditions
To apply for a National Student Loan, borrowers must meet the following conditions:
1. They should have the nationality of the People’s Republic of China and full capacity for civil conduct;
2. They should be honest and trustworthy, observe discipline and the law, have good conduct, and commit no illegal or disciplinary acts;
3. They should study hard and be able to complete their studies normally;
4. Their family is in financial difficulties, insufficient to pay the basic expenses required to complete their studies during the school period, including tuition and miscellaneous fees and basic living expenses;
5. They should promise to inform the loan handling branch/sub-branch of the changes during the school period and after employment;
6. They should open a personal settlement account with ICBC;
7. During the same school period, no state-subsidized student loan is handled in other financial institutions; and
8. They should meet other conditions stipulated by the Bank.
II. Materials for application
Students applying for loan must fill in the application form in writing and submit the following materials at the same time:
1. Student ID Card and ID Card;
2. Consent from direct relatives (parents) on application, how to contact and residential address;
3. Application for state-subsidized student loan;
4. Descriptions on the family difficulty;
5. Document certifying the family’s difficulty from the civil administrative department of village, town or street (except for special local regulations);
6. School offer if the student is a freshman;
7. Authorization for inquiry and use of credit information about personal customers; and
8. Other materials required by the Bank.
III. Operation guide
1. Application submission. Student applying for loan gets an application form from his/her school. After collecting all application forms and confirming the authenticity of materials provided, the school will deliver the forms, materials and opinions to lending bank.
2. Bank’s review and approval. The Bank makes investigation and approval on the credibility of applicable students.
3. Contract signing. The Bank signs the loan contract with the applicant for the approved loan after investigation.
4. Loan issuance. The Bank grants the loan according to the prescribed procedures. The tuition and miscellaneous fees loan is directly drawn into the account specified by the borrower’s school in each academic year (semester). The living expense loan is drawn into the personal settlement account designated by the borrower.
5. Repayment confirmation. The student submits a confirmation of repayment to the school and the Bank after graduation, and undertakes to repay the loan principal and interest according to the contract.
6. Loan settlement. The same as other personal loans.
☆ Limit and term
The maximum amount for National Student Loans is up to RMB 16,000 per year for full-time undergraduate students and RMB 20,000 per year for full-time graduate students.
2024 state-subsidized student loan interest exemption and principal repayment extension:
1. Interest on National Student Loans due for repayment by students who graduated in 2024 or previous years will be exempted in 2024.
2. For students who graduated in 2024 or previous years, the principal of National Student Loans due for repayment in 2024 can be deferred for 1 year upon the student’s request. The grace period for student loan principal repayment is 5 years, and the maximum loan term is 22 years. No penalty interest or compound interest will be charged for the deferred loan.
☆ Interest rate
The benchmark loan interest rate is equal to LPR of the same grade over the same period minus 60BP. The borrower’s loan interest during the school period is all subsidized by the government, and will be paid by the borrower after graduation.
Before the student loan is granted, the borrower can agree on the first repayment date of the loan with the Bank, namely: During the period from the loan issuance date to the first repayment date, the borrower does not need to repay the principal and interest of the loan. The borrower can choose between two methods of interest amortization and the first repayment to repay the interest generated during that period. For equal monthly installment, equal principal or other repayment methods, the principal and interest should be calculated according to appropriate formulas.
● General Commercial Student Loan
General commercial student loan is an RMB loan, which is neither guaranteed nor secured, granted to borrowers meeting specific conditions to cover tuition, accommodation, and basic living expenses during their studies.
☆ Conditions
1. Aged 18 (inclusive) or above, with a good credit record and full civil capacity, and a Chinese citizen;
2. Officially admitted to a university, with a genuine, legal, and valid admission notice, and recommended by the university or local student assistance management center for loan application, or a new or current student at a university that has signed a cooperation agreement with our bank for student eligibility verification;
3. Written consent from parents on application.
Customers can visit their local branch for inquiries and application processing.
☆ Limit and term
Loan limit: Up to RMB 16,000 per year for undergraduate students; up to RMB 20,000 per year for master’s and doctoral students. Floating interest rate (annualized), calculated by adding a spread to the latest one-year Loan Prime Rate (LPR), updated monthly, which shall not be lower than the National Student Loan rate for the corresponding period and grade.
Loan term: The duration of the study program plus 6 years, with a maximum total loan term of 16 years.
Repayment methods: equal installment, equal principal, interest paid periodically with principal repaid at maturity, etc. A grace period may be granted to borrowers during which they are not required to repay principal or interest.
☆ Important notes
General commercial student loan: Borrowers must commit to providing information about changes in their circumstances during their studies and after employment to the loan-handling bank, including but not limited to:
1. During the study period, promptly notify the loan-handling bank of any changes such as suspension of studies, transfer, studying or residing abroad, dropout, expulsion, disability, etc., along with updated contact information and residential addresses;
2. Before graduating and leaving the school, inform the loan-handling bank in writing of their post-graduation plans, employer’s name, residential address, contact information, and contact details of family members or other valid contacts;
3. If there are any changes in employment, inform the loan-handling bank in writing of the new employer’s name, residential address, and contact information.
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