Credit line for higher education students with mutual guarantee
- Name of the instrument - Local language
- Linha de crédito para estudantes do ensino superior com garantia mútua
- Name of the instrument - English translation
- Credit line for higher education students with mutual guarantee
- Scheme ID
- 181
- Country
- Portugal
- Reporting year
- 2015
- Type of instrument
- Loan
- Type of entry
- Single instrument
- Short description
Loans for higher education students vary between EUR 1 000 and EUR 5 000 per academic year up to a maximum total amount of 25 000 (for 5 year university programme). The loans are repayable over a period of 6 to 10 years; the repayment starts one year after graduation. The loan is provided by retail banks. The State and provides loan guarantee and subsidises interest rate.
- Short description of the related instruments
nap
- Level of operation
- National
- Name of a part of the country
- nap
- Name of the region (for regional instruments)
- nap
- Name of the sector (for sectoral instruments)
- nap
- Relevance
- Key scheme
- Legal basis
Decree-Law n. 309-A/2007, from 7 September (Mutual guarantee schemes)
- Objective(s) and target(s)
To promote increasing of Portuguese citizens' academic qualifications; to complement direct support from the State.
- Year of implementation
- 2007
- Operation/management
Commercial banks
- Eligible group(s)
University students
- Group(s) with preferential treatment
None
- Education and training eligible
University programmes
- Source of financing and collection mechanism
Banks (current financing - providing loans)
State (loan guarantee, interest rate subsidy)
Individual (repayment from future income)- Financing formula and allocation mechanisms
Loan amount: may vary between EUR 1 000 and 5 000 per year with the maximum amount of EUR 25 000 (for 5-year university programme).
The interest rate: fixed; subsidised by the State; set at 1.801% (compared to , for example, 5.2% in the Caixa Geral de Depositos); can be further reduced if the student has good results.
Repayment : starts 1 year after the prospective graduation; the loans are repayable over a period 6 to 10 years.- Eligible costs
Specific arrangement
- Volumes of funding
Between 2007 and 2011, EUR 2 884 790 was reported in default (EUR 576 958 per year on average); default rate of 1,43%.
- Beneficiaries/take up
Between 2007 and 2011, 17 750 loan takers were reported (3 550 per year on average).
- Organisation responsible for monitoring/evaluation
Portuguese Society of Mutual Guarantee.
- Monitoring/evaluation reports available
From 2010 (it covers 4 years): http://www.crup.pt/images/documentos/Financiamento/Relatrio_-_Emprstimo…
Synthesis document covering until 2011/2012: http://www.crup.pt/images/Emprstimos_12.01.2013.pdf
- Most relevant webpage - in English
- Most relevant webpage - local language
http://www.crup.pt/pt/estudantes/sistema-de-emprestimos-com-garantia-mu…
- Sources
http://www.crup.pt/pt/estudantes/sistema-de-emprestimos-com-garantia-mu…
http://www.crup.pt/images/documentos/legislacao/Decreto-Lei_n._309-A.20…
- Short description
- Short description of the related instruments
- Level of operation
- Name of a part of the country
- Name of the region (for regional instruments)
- Name of the sector (for sectoral instruments)
- Relevance
- Legal basis
- Objective(s) and target(s)
- Year of implementation
- Operation/management
- Eligible group(s)
- Group(s) with preferential treatment
- Education and training eligible
- Source of financing and collection mechanism
- Financing formula and allocation mechanisms
- Eligible costs
- Volumes of funding
- Beneficiaries/take up
- Organisation responsible for monitoring/evaluation
- Monitoring/evaluation reports available
- Most relevant webpage - in English
- Most relevant webpage - local language
- Sources