1. LOAN PROCEDURES

The loan process consists of 2 phases, each consisting of a certain set of procedures. Phase 1 is referred to as the Student Loan and is repeated each year.  Phase 2 is referred to as the Final Loan and occurs only once. During the two phases, the student and one of his/her parents are involved, the latter serving as guarantor. If both parents are not working or do not satisfy the conditions (listed in section 3) required by BML for a guarantor, then any relative/friend to the student can be the guarantor provided he/she fits those conditions. The student and guarantor are referred to here within as the Client.

All continuing students who received at any time during their studies at AUB a loan from BML and have not graduated yet are required to follow the procedures below even if they do not accept this year's loan. This is necessary for the continuity of the student loan otherwise the loan is considered final and the student will have to enter repayment.

Phase 1: Student Loan

 This phase involves the following procedures:

1.      The FAO assigns the loan amount for the year based on the financial aid received.

2.      The student should go to BML – Bliss Branch with the required documents (see section 3)

3.      BML will study the application

4.      BML will inform the FAO and the student of the final decision

5.      If the loan is approved the student should go again to BML in order to finalize the process

It is the student’s responsibility to follow-up with the bank for the final signature following the bank's approval with the set time frame and process deadline stated on the top of this page .

These procedures are repeated for every year during the student’s period of study for the purpose of renewing the loan.

Phase 2: Final Loan

Upon graduation the student should convert the Student Loan to a Final Loan.  This consists of the following procedures:

1.      Two months prior to the expected date of the student’s graduation the student/guarantor proceed to BML with the required documents (see section 4).

2.      BML will review the loan application.

3.      Upon the bank’s approval the student/guarantor should go again to BML for a final signature. 

4.      BML sends to the FAO the list of students who have finalized their loans and students will be cleared by FAO during the AUB clearance process.

5.      Students who do not finalize their loans within the set deadline will not be cleared and AUB will keep hold of their diplomas until the process is completed.

  An Alternative to Phase 2: Cash Settlement

Upon graduation, the student can choose settle the entire amount of the Student Loan to the bank.  This will require special procedures as determined by the bank in order to avoid a prepayment penalty. In this case the student will also be cleared as described in Phase 2. 

2. CONDITIONS FOR GUARANTOR

·          The Client shall be Lebanese, or a permanent resident of Lebanon with a minimum of a residency of ten years.

·          The monthly income of each guarantor should amount to a minimum of USD 600.

·          The monthly installments must not exceed one-third of the guarantor’s monthly income.

·          The guarantor must not be more than 67 years old on the date of graduation of the Student.

3. REQUIRED DOCUMENTS

The documents required depend on the type of employment of the guarantor. 
    Documents Required from Employees of the Private Sector                  

-        Copies of the National IDs of both student and guarantor + Copy of the student's AUB ID.

-        Salary Attestation in original form signed by the employer showing the number of years of employment and to be duly certified by the Employer's Bank.

-        Latest Telephone &/or Electricity bill.    

Documents Required From Self-Employed Customers                                            

-        Copies of the National IDs of both student and guarantor + Copy of the student's AUB ID.

-           Copy of the certificate of registration in the Trade Register.       

-            Latest account statement at other banks for the last 3 months (positive balance)

-         Latest Telephone &/or Electricity bill.                      

Documents Required From Professionals 
 ( Lawyers, Doctors, Engineers…)

-        Copies of the National IDs of both student and guarantor + Copy of the student's AUB ID.

-           Copy of the Medical Insurance Card.

-           Latest account statement at other banks for the last 3 months (positive balance)

-           Latest Telephone &/or Electricity bill.

Documents Required From Military Staff

-        Copies of the National IDs of both student and guarantor + Copy of the student's AUB ID.

-           Copy of form #1 for Internal and General Security Members.

-           Copy of form #2 for Army Members.

-           Recent salary attestation or pay slip in original form, in addition to the name of the officer in charge and his phone number.

-           Latest Telephone &/or Electricity bill.                                                                 

Documents Required from Employees of the Public Sector

-        Copies of the National IDs of both student and guarantor + Copy of the student's AUB ID.

-           Recent salary attestation or pay slip in original form + the account statement for the last 3 months (the account used for salary domiciliation).

-           Latest Telephone &/or Electricity bill.                                                                                                               

Documents Required From Retired Customers

-        Copies of the National IDs of both student and guarantor + Copy of the student's AUB ID.

-           Salary Attestation in original form duly signed and certified by the Ministry of Finance + the account statement for the last 3 months (the account used for salary domiciliation).

-           Latest Telephone &/or Electricity bill.