The Gibraltar International Bank will launch new graduate account and loan products specifically aimed to benefit the students of Gibraltar as well as their parents and legal guardians.
The Grad Account will allow students to access their funds by using all the latest technology including Ebanking and Mobile Banking.
The bank will give account holders the option of applying for a ‘Grad Loan’ that aims to make the move to university less financially stressful for students and parents/guardians.
“We are in the business of creating long standing relationships with our clients; it is not just about opening an account. We firmly believe that as a bank we need to accompany our clients in their journey through life, providing support where required and always aiming to make life easier for them,” said Derek Sene, the Bank’s Chief Operating Officer. “The youth are our future and we have invested heavily in creating a suite of products that can accompany clients from the date of their birth, through their teenage years into the time when they further their studies”.
In order to be eligible for a ‘Grad Loan’, a ‘Grad Account’ will need to be opened in the name of the student wishing to continue their studies at a degree level. This account will be a standard current account with online banking and mobile banking access, and the added feature of a Grad Loan if the financial assistance is needed.
In those cases where financial assistance is required, the parents/ legal guardians of those students wishing to continue their studies after the age of 18 will be eligible to apply for the loan. The bank will require confirmation from the Department of Education that the student will be continuing their education.
The interest rate on the loan is 4.5%p.a above the base rate and the loan will be drawn out in tranches of a maximum of £5,000 per academic year throughout the student’s period of study.
In terms of repayment, there are two options: interest only to be repaid monthly during the period of study to be converted to a capital and interest loan with monthly repayments once the student has completed their studies. Alternatively, it can be repaid by way of capital and interest monthly repayments from the outset.
“The delivery of this product is part of the Bank’s commitment to introduce new products which will make a difference to members of our community,” said Lawrence Podesta, the bank’s Chief Executive Officer. “With the considerable numbers of students that opt to further their studies in the UK we are confident that this product will be attractive. We are conscious of the need to be innovative in the development of new products with focus on the specific needs of our community.”
You will be able to apply for a Grad Account and Grad Loan via the Gibraltar International Bank website.