Student loans: an offer that lacks appeal

Tamwilcom’s “Teaching Plus” product has benefited 1,800 students since its launch. The total package of bank loans mobilized amounted to 233 million dirhams.
Few students resort to bank financing, preferring equity.

A student’s college course is littered with pitfalls. Once the Bac is in their pocket, a multitude of options are available to students, whether in public or private schools and universities, in the Kingdom and abroad. In Morocco, tuition and enrollment fees are increasing from year to year and the funding constraint is therefore acute. The final cost can range from simple to double, even reaching over 500,000 DH.
Overall, parents draw on their savings; the most informed set up a savings plan right from the birth of their children to cope with this type of expense. To make life easier for students, banks have been developing offers for higher education funding for several years. Most of these offers are sealed in collaboration with the schools and with the guarantee of Tamwilcom (formerly GCC). In fact, since 2008, the institute has activated a “Teaching Plus” offer aimed at facilitating the granting of bank loans to students enrolled at private education institutes and high schools for the total or partial financing of enrollment fees. and registration.

Lack of attractiveness
This credit finances training courses with a maximum duration of 5 years for a maximum of 50,000 DH per year of study, or a total ceiling of 250,000 DH. The credit can be repaid over a maximum period of 12 years including a grace period of up to 6 years. While this offer may sound attractive and solve funding problems, it hasn’t attracted many people. According to Tamwilcom, since its launch, the mechanism has enabled more than 1,800 students to finance their higher education, some of whom have already entered the world of work. It thus mobilized a total of 233 MDH of bank loans. On average, 16.6 MDHs have been granted during each of the past 14 years, for just 128 students. Yasmina Benamour, CEO of HEM, confides: “Only a minority uses bank loans. We do not yet have a study credit system in Morocco that is really attractive and suitable for the target ”. This is also the case of other higher education institutions contacted, which denounce the low attractiveness of this funding system and argue that almost 99% of students use self-financing. Some others do not even prefer to propose this solution given the various management hassles that this financing product could generate.

Management problems
Tamwilcom instead believes that the product has adequately achieved its objectives in serving the target population that has been defined.

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