A specialist that currently lends to UK students plans to offer loans to students in the Republic by the end of the year.
Future Finance said yesterday it plans to expand its Dublin base and recruit 50 new staff in two years as it prepares to extend its business across Europe.
It is attracting grant aid from the IDA.
The lender says that it exists to provide small loans and is there to complement the UK government’s student loans scheme.
Since it was set up just over a year ago, the company has loaned £16 million (€22.1m) to students at UK universities.
It assesses loan risks on criteria that include credit scoring the undergraduate and post-graduate courses and the chances of a student securing work at the end of courses.0
It now plans to extend the business model across Europe, including the Republic, though no figures are yet available for the amount of lending it will offer here.
Its website gives examples of the amount and the cost of the loans it provides.
For a student borrowing £6,200 for a period of 12 years 5 months, or 10 years and 3 months after graduation, it levies an “origination charge” of £403.
With a variable interest rate of 11.3%, the undergraduate student would pay a total amount of £12,350.04 over the course of the loan.
“Future Finance was established to give students across Europe access to a tailored, affordable and transparent financing option to help bridge this funding gap. I look forward to offering this option to Irish students in the near future,” said Future Finance CEO Brian Norton.
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