The Jakarta Post
State-owned lender Bank Mandiri, in cooperation with Yogyakarta's Gadjah Mada University (UGM), has kicked off its student loan program for undergraduate, graduate and postgraduate students enrolled at the national university.
Bank Mandiri vice president director Sulaiman A Arianto said on Wednesday in Yogyakarta that the student loan program was developed in response to President Joko Widodo’s call to distribute consumer loans for more productive activities, including student loans.
He said the bank would also cooperate with other prominent universities across the country.
“We want to take part in improving the people’s prosperity through education,” Suliman said after signing the loan agreement with UGM in Yogyakarta as reported by tribunnews.com.
He said the student loans had basic requirements, competitive interest rates and a flexible credit limit that could be adjusted to a student's needs to finance their education.
The credit limit for students of low-income households was Rp 75 million (US$5,439) with a 10-year tenor and required recipients to maintain a 3.5 grade point average (GPA). Business school students would receive a credit limit of Rp 100 million, also with a 10-year tenor, and were required to maintain a 3.25 GPA.
“We have also designed a [continuing] education loan for UGM lecturers with a credit limit of Rp 200 million and 10-year tenor, which can be adjusted to the year they retire,” Sulaiman added.
Meanwhile, UGM rector Panut Mulyono welcomed the cooperation, expressing his hope that the program would encourage students to perform at their best. “We hope [our] students will become more competitive human resources in the future,” he added. (bbn)