How to get an education loan?

Procedure for obtaining an educational loan

Educational loans are provided by commercial banks to students who are citizens of Uzbekistan, their parents or guardians. These loans are intended for students admitted to full-time departments of higher education institutions on a fee-based contract basis.

**Loan terms:**

* For undergraduate students: up to 10 years.

* For graduate students: up to 5 years.

**To whom are they provided?**

Educational loans are provided to students of state, private and foreign higher education institutions in the republic and their branches for contract payments.

**Changes from the 2024/25 academic year:**

The amount of the educational loan for students of the second and higher levels is determined based on the average score (GPA) of the subjects:

* **If the GPA is below “3”:** A maximum of 80 percent of the payment-contract amount is allocated. In this case, the loan is issued after the student pays the first 20 percent of the payment-contract amount.

* **If the GPA is “3” and above, or for studying members of families included in the “Unified Register of Social Protection”:** An educational loan is allocated in the amount of the payment-contract amount.

**Procedure for obtaining data:**

The student’s average score (GPA) is obtained from the “Higher Education Process Management” (HEMIS) information system at the end of the previous academic year. The student's GPA and related data are automatically generated through HEMIS, and payment-contract data is automatically generated through the information system "Accounting for services provided to students on a contractual basis" (kontrakt.edu.uz).

Payment-contract data of students of non-state and foreign higher education institutions is generated by integrating their information systems into the "Accounting for services provided to students on a contractual basis" system or using this system.

**Documents required for obtaining an educational loan:**

1. Application for obtaining an educational loan.

2. Agreement (contract) on studying on a payment-contract basis concluded between the student and the higher education institution.

3. Document on ensuring the repayment of the loan (for example, a guarantee of individuals or legal entities, a pledge of property or securities, an insurance policy on insurance against the risk of non-repayment of the loan).

4. Certificate confirming inclusion in the “Unified Register of Social Protection” (for children of families included in the “Unified Register of Social Protection”).

5. Other documents specified in the internal documents (policies) of the bank, including information and documents related to the co-borrower.

**Which banks provide educational loans?**

14 banks in Uzbekistan provide educational loans. Most of them provide loans within the framework of the state program at an annual interest rate of 14%. Only five banks finance such loans from their own funds.

The loan can be used by citizens of Uzbekistan and foreign citizens permanently residing in the country. It can be issued for full-time, evening and distance education at the bachelor's or master's degree level. Some banks also allow the supercontract fee to be covered from the loan.

Education can be obtained at branches of state, private or foreign higher educational institutions licensed in Uzbekistan. The bank will cover from 80% to 100% of the contract value.

The loan is intended only for tuition fees. Therefore, funds cannot be transferred in cash or to a personal bank card. The bank transfers the money directly to the account of the higher educational institution.

To obtain a loan, a valid contract with a higher educational institution and loan collateral - a guarantee, a property pledge or insurance are required. There are exceptions for some borrowers. For example, a guarantee or pledge is not required from women in families included in the Unified Social Protection Register.

**How to apply for a loan?**

The application can be submitted in person to the bank or online. When applying to the bank, the necessary documents are provided. After checking them, the bank makes a decision on whether to grant a loan or not. If the application is approved, the parties conclude a loan agreement.

An online application can be submitted through the Education Loan System or the Single Portal. In this case, the main part of the process can be carried out remotely, but if necessary, the formalities will need to be completed at the bank.

After approving the application, the bank transfers the loan funds directly to the account of the educational institution. If the student transfers to another higher education institution or the cost of tuition changes, the loan amount may be recalculated. To do this, you must contact the bank and the educational institution and provide documents confirming the change.

**Loan under the State Program**

The State Program has been in effect since 2021. It is implemented through the Education Loan Financing Fund under the Ministry of Economy and Finance.

There is an additional support measure for women: interest on the loan is reimbursed from the Fund. Therefore, the borrower who complies with the terms of the program repays only the principal amount of the loan, without paying interest.

The main advantage of the program is a fixed rate of 14% per annum. In this case, the principal is not required to be repaid during the study period. The student pays only interest on the loan during this period. After completing higher education, the graduate is given a grace period to find a job. Repayment of the principal begins six months after graduation.

**The amount of the loan depends on the student's course and the cost of education:**

* **1st year:** Up to 100% of the contract value.

* **2nd year and above:** Up to 80% if the average achievement index (GPA) is below 3.0. The remaining 20% is paid by the student himself.

* **Up to 100 percent:** For students with a GPA of 3.0 or higher, as well as for family members included in the Unified Social Protection Register.

Soft loans are provided only to students studying full-time at higher educational institutions in Uzbekistan.

In addition, five banks are financing educational loans from their own funds. Unlike loans under the state program, such loans can be issued not only for full-time, but also for evening and distance learning.