You know What is corfo credit? We tell you everything you need to know about this type of bank credit, and especially about Corfo university credit, how you can obtain it and the benefits it offers. You will be interested!
What is Corfo credit?
The Corfo credit is a type of bank credit supported by the Government of Chile, through the Ministry of Economy, Development and Tourism with the purpose of promoting entrepreneurship in the different areas of national production. Hence its name Corfo (Development Corporation).
In this project about QWhat is the Corfo credit, The corporation has created an alliance with some banking entities for the granting of credits, attending to the needs and innovation in undertakings of Chileans and foreigners.
Below we invite you to watch this audiovisual material that explains what Corfo credit is and the entrepreneurship programs it offers nationwide
Corfo university credit
Among the range of credits offered by the Chilean Development Corporation in alliance with some banking entities, we have the Corfo University Credit.
What is it about?
The Corfo university credit is a credit modality granted through banking institutions with the financial support of Corfo. Its purpose is to offer financing so that undergraduate university graduates have the opportunity to start postgraduate studies both in Chile and abroad.
Who can opt for the credit?
As we have mentioned, this type of bank credit is aimed at professionals from Chile and also foreigners (who meet the requirement of having permanent residence in the country), and wish to pursue postgraduate studies.
Opportunities offered
This financing modality on What is the Corfo credit for university students allows to increase the academic preparation with the obtaining of master's degrees, doctorates or an academic degree that lasts at least one academic year.
Likewise, it can be requested to finance the stay abroad in order to take advanced courses in areas related to health such as medicine, nursing and others. It is necessary that this permanence is greater than six months.
Then we will explain the study options and other important details.
1.- If you want to study a postgraduate degree in the country, you can opt for credit of up to UF 1.500, to be paid within 4 to 10 years and offers you the facility of grace periods and capital for 24 months. The interest rate is fixed during the term granted.
With this credit, you will be able to cover the enrollment and fees at a Chilean university, as well as everything you require to continue your studies, such as books and other supplies necessary to achieve your goal.
2.- If you want to study abroad, you will receive financing of up to UF 3.000, to pay between 4 and 10 years and with the possibility of grace periods for up to 4 years. The interest rate is fixed. What can you cover with the credit? Tuition and fees, as well as round-trip tickets for the family group (spouse and children), health insurance policy, life insurance, housing and food expenses, materials and books, as well as others that are necessary for completion of the postgraduate
Requirements to request the credit
As for all credit applications, you must meet the requirements for granting. We explain what you need:
The requested documentation will allow the bank to carry out the risk assessment in order to verify if the applicant can opt for the credit.
Some of the documents are: title or certificate of higher education granted by the university or educational institution, proof of acceptance in the postgraduate course for which you are requesting financing, indicating the semester or year you are studying, duration of the career, value tuition and fees. (The banks give the model of this certificate) and a detailed explanation indicating the amount requested and the distribution of the resources.
It is also necessary to justify the gross family income, since it cannot exceed UF 120 per month. A sworn statement must be made before a notary public. The model for this process is provided by the financial institution.
On the other hand, if the request is for the purpose of carrying out postgraduate studies abroad, applicants must have an accreditation granted by the International Cooperation Agency.
Now, once the credit request is approved, what is the Corfo credit, the bank takes care of everything related to the Development Chamber to process the loan, in this way it is not necessary for the applicant to go to Corfo with the in order to carry out any procedure.
General rules and conditions of Corfo credit
Next, we present the general conditions that operate for this type of Corfo credit for university students that you should know.
Financing
The Development Corporation finances, through banking entities, the necessary resources by granting loans in national currency, so that they, after reviewing the required requirements, execute the credit for the purposes indicated. The conditions of the loan, such as the cancellation period, the interest rate and readjustability, are established by the bank. If you are interested in learning about financial issues, I invite you to read types of money
Deadlines
If the request is to study abroad, the cancellation terms will not be less than 4 years nor exceed 10 years. This period of time includes a grace period of up to 2 years.
Interest rates
The loans will be granted with fixed interest rates. The Development Corporation will accrue interest on the loan granted to intermediaries. From the date on which the disbursement is made, interest will be calculated on the debt and will last up to one year. If there is delinquency, the rate is raised to the maximum legal rate in force at the time of the transfer.
Prepaid
Intermediaries may partially or totally cancel the loan granted. In this case, interest will be calculated until the date of prepayment.
Credit refinancing for university students
There is a possibility that the banks request additional resources from the Corporation to refinance the credits granted to the final beneficiary, with the intention of being able to satisfy the requirements of the year of studies that the applicant is studying. This request must accompany the list of said credits and must contain the following information:
- Amount requested, expressed in Unidades de Fomento (UF).
- Deadlines.
- Grace period.
- Payment conditions: Payment dates (first and last due date), frequency of the installments and the date of the first interest due date.
- Name and RUT of the debtor.
- Academic period to be financed.
In relation to the applicant, the data are the following:
- Full name
- Passport
- Date of birth
- Phone number.
- Email address (E-
- Exact address of your home (commune and region of residence).
- University or educational institution of origin.
- Academic degree to which you aspire.
- Copy of the academic accreditation certificate.
Refinancing loans have special conditions. As for loans to pursue postgraduate studies abroad, the Corporation will make the loan to the bank, considering the term for its cancellation a period of time, not less than 4 years nor more than 10 years. The capital amortization will be from the 15th of each month and the interests will be received from the date of payment and on a semi-annual basis.
It is an essential requirement that in loan applications the required amounts are expressed in Unidades de Fomento.
Regarding the interest rates applicable to the refinancing loans, the Corporation must notify the intermediaries of the rates for the different term options. These fixed rates will remain in effect for a minimum period of 90 days. After this period of time, you can extend them for another 90 days. However, the Corporation will have the right to modify during the period of 90 continuous days, in case there is a variation in the rate greater than 50 basis points to the reference rates.
Something more about what is the Corfo credit
You already know that these credits are received in development units (UF) and the banking entities are in charge of approving them individually to cover the needs of the applicants for each academic year.
There is also another form of financing, under the modality of a “line of credit”. This line covers tuition and fees plus an additional percentage of up to 20% to satisfy other consumption related to studies. The decision to grant this amount depends on the policy of each bank.
Another important detail that you should know is that the bank can finance another credit, in addition to the annual one, for an amount of UF 150 so that the applicant can cancel some previous debts with the educational institution.
Regarding the term to cancel this additional credit, it is a maximum of 15 years, including the grace periods for the payment of capital and interest. In the event that it is a “line of credit, which covers several years of studies, this term begins to take effect from the last payment made. The interest rate can never be higher than the maximum rate authorized by Corfo.
In any case, the bank will determine in each situation, and in common agreement with the client, the total terms and the appropriate grace period.
In this order of ideas, you should know that the money for tuition and fees are paid directly to the university institution where the applicant has been admitted to pursue a master's or doctorate. You will receive from the bank the additional margin of 20% in the form in which they have agreed.
Banks that grant Corfo credit for university students:
The entities that have signed a contract for this loan are:
- BBVA Bank.
- BCI
- Development Bank.
- Falabella Bank.
- corporate banking
- Ripley Bank.
- Santander Bank Santiago.