Fransabank Loan Conditions and Procedures
Loans are available to undergraduate students from all faculties and majors in addition to medical students, provided they satisfy the qualification criteria below.
To qualify for the loan, the student should be:
- A current financial aid recipient
- Undergraduate, Junior level and above, or a medical student (click here for detailed class levels)
- Showing a satisfactory academic progress (not on probation 2)
- The Program
The new loan program has special benefits to AUB students, including:
- a waiver of the loan application fees
- minimal guarantee conditions, whereby a personal guarantee is sufficient
- free life insurance granted with the loan.
- Loan currency: Lebanese Pounds
- Interest Rate: 3 percent
- Grace period: 1 year after graduation
- Repayment Period: up to 10 years following the grace period, however the students start paying the interest only (not the principal) as soon as the loan is disbursed during the years of study and the grace period.
As an alternative to the above, the student may choose to settle the entire loan amount upon graduation.
All eligible students will be sent an email during the loan processing period informing them about the loan amount that they can apply for.
The loan is optional for those eligible students and therefore students can accept or reject the loan by filling an Online Consent Form.
Rejecting the loan does not affect in any way the students' eligibility for the financial aid grant theat they are receiving.
The students who accept the loan will be able to select in the form, by order of preference, the banks from which they wish to receive their loan. Students will then receive an email from FAO describing detailed procedures to follow. FAO will, to the extent possible, ensure that the students are granted their student loan from their preferred bank.
The students who do not want the loan would still need to fill the form in order to inform us of their decision and whether they wish to receive future loan offers of upcoming years or not.
The actual application process for the loan is done at the bank during a specified period. You should therefore visit Fransabank - Ain Mreisseh, facing Ain Mreisseh mosque, Nawras bldg.,1st floor in order to fill out the loan application form and submit the required documents that are listed below. Make sure that you go well prepared. You can call Fransabank at 01-373240/1/2 for any information you need before you proceed.
Students should visit the bank and apply during the following period only:
Monday, 16 May 2011-Friday, 20 May 2011: from 8:30 am - 3:00 pm
Saturday, 21 May 2011: 8:30 am - 11:30 am
Upon approval of the loan by Fransabank, the bank shall contact you to notify you of its decision and ask you and your guarantor to visit the bank for the signature of the student loan contract, the signature of a personal bank guarantee, and any additional documents, if any. The Bank shall contract a free of charge life insurance policy for each student, upon the signature of the student loan contract.
Once the bank sends its feedback to the Financial Aid Office, you will be asked to go to the bank again to acknowledge the disbursement made to AUB on your behalf and obtain the related transaction statement from the bank for your record.
The bank will require from the student to provide for a personal guarantee in favor of the bank in connection with the student loan.
The student pays the loan’s interest of 3% per annum of the value of the student loan.
Documents required by Fransabank:
For the student:
1. Copy of ID
2. Copy of AUB Student's ID
3. Copy of family civil extract
4. Proof of residence (utility bill)
For the guarantor:
1. Authenticated salary certificate
2. Copy of NSSF card or Medical insurance card (private sector)
3. Copy of ID
4. Family civil extract
5. Proof of residence (utility bill)
1. Copy of ID
2. Family civil extract
3. Proof of residence(utility bill)
4. Copy of medical insurance card
5. Declaration of income (expenses –revenues)
6. Statement of account (for the last one year)
7. Proof of job (Business Registration-Business Rent contract orTitle Deed...)
The stamp duties are expected to be within the following range for each of the following documents:
• LL 10,000 stamp duty on the loan for each borrowing year, which shall be paid by the student on an annual basis until a final repayment schedule has been executed by the student;
• LL 10,000 stamp duty for the personal guarantee.
It is the student’s responsibility to follow-up with the bank for the final signature after the bank approval within the set time frame and process deadline.
For more information please contact Fransabank- Ain Mreisseh, facing Ain Mreisseh mosque, Nawras bldg.,1st floor 01-373240/1/2 or the Financial Aid Office, ext 3164.