Mode of disbursement of the loan of honor
The methods of disbursement of student loans for students college are of two types: open overdraft and personal loan. In fact, these two methods of disbursement of student loans belong to the same line of credit or financing the same, but cover different stages of the same. The opening of current account credit is the form in which the loan is granted, the personal loan is the form in which the loan can be repaid .
The first mode of disbursement of the loan of honor requires that the bank provides financing through a credit in the current account. Account that will be made payable to the student and where it will be credited with the amount to be used for the period of study. This line of credit allows the student to take advantage of additional services such as home banking, that is, the complete bill and the transactions online, and ATM . The availability of funds in the account can be done every six months to allow the student to better manage and control its spending power.
This mode of disbursement of the loan of honor is also useful for helping university students to develop a sense of independence and emancipation from the family of origin who traditionally bear the burden of fees and tuition fees, as well as being also the mode delivery of a loan is not based on personal guarantees or collateral, but on the merits or, as they say, honor. With a current account you will not have the perception of being a debtor, but an individual who invests and spends to build their own future.
The loan of honor is also a personal loan because it provides for a refund of the amounts used in equal installments, including interest accrued. For personal loan means a loan can be used for non-specific reasons, said loan “not finalized” not attributable to the purchase of certain goods and services on which they are asked for collateral, such as, for example, mortgages on real estate, but only personal, as the surety. In the case of personal loan, with the loan of honor, you will not need any additional warranty.