OREANDA-NEWS. August 26, 2008. In line with the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 318 of 26 July 2001, Savdogar Uzbek-German Commercial Bank has created an educational loan plan for undergraduate students with the maturity period of 10 years, and for master's students – with a maturity period of five years.

These loans are extended only to full-time daytime students of any higher educational institution. The interest rate is floating, but not lower than the refinance rate set by the Central Bank of the Republic of Uzbekistan. The interest is calculated and due to payment upon the issuance of the educational loan. The principle is to be fully repaid within three months after graduation from the higher educational institution.

The periodicity of loan issuance is twice a year with the transfer made in two equal parts of the yearly sum of tuition. At the same time the payment for the newly-accepted first year students is done before 1 October, and before 15 March in the second semester.

Starting from the second year of stud, the payments for the loan are made no later than the fifth day of the first month of semester (September and March).

In order of receive an educational loan the borrower should submit an appropriated filled in application, a contract for the study on paid-contractual basis between the student and the university, a reference letter from the place of living issued by a local citizens' self-government body or a housing owners' community. Also, the same as with any other loan, here too the borrower needs to provide a document securing the repayment of the loan (collateral) and a passport presented by the borrower in person.

A collateral for an educational loan may be a mandatory guarantee by a third party, an insurance policy on the insurance of the risk of loan non-repayment, a collateral in the form of property or securities, or a bank guarantee.

Particularly timely in the year of 2008, a year pronounced by the government as the year of youth, an educational loan provides Savdogar Bank a competitive advantage. The bank constantly works on further improvement of the quality of its services, diversifying the types of the banking operations and products provided, strengthening its status in the internal and external financial markets.

Starting from 1 January 2006 Savdogarbank was reformed into an Uzbek-German Savdogar Commercial Bank in accordance with the Presidential Decree No. 3764 of 22 June 2006. This took place after R&D Express Aussenhandels GMBH (Germany) received the Uzbek Central Bank's permission to acquire 40% of Savdogarbank in December 2005. As of 1 January 2008 the equity capital of the bank comprised 8 billion soums.

Among the shareholders of the bank are R&D Express-Aussenhandels GMBH (Germany), Khorazm Shakar, Shakar Investment, ILK PLYUS, ARDUS, DINUS NON.

The bank has 28 branch offices, 47 mini-banks and 36 international remittance service points throughout the country. Savdogar Bank is a credit institution of universal type and its offices scattered across the country provide clients the widest range of banking services.