Student Finance


FMFB’s Student Finance Product

In recent times, quality education is no more a luxury availed by the affluent – it is a necessity for every aspiring individual of the young generation with a dream to succeed and avail better opportunities in life. Since its inception in 2002, The First MicroFinanceBank Ltd. (FMFB) has been committed to offering customized financial services that will enable members from the poorest segments of the society to realize their potential and improve the quality of their life.


Banking on Education seeks to ensure that children and young people are equipped with the knowledge, skills and values to help them become contributing members of the society. By supporting educational institutions and students, FMFB-P aims to promote a continuous ladder of lifelong learning, starting from childhood and extending well into adulthood”.

The client feedback over time has shown an escalating interest and willingness to receive financial assistance for education of their children in hopes of a better future for the entire family. Student Finance is a product under FMFB’s vision of “Banking on Education” that has been designed to support tertiary level of education, including Bachelor & Master degrees and Technical/ Vocational trainings from HEC accredited universities and approved technical/vocational institutions. Even though there is a need to support education at all levels, the intent of this product is to support education, which can immediately translate into better income opportunities for the clients’ families upon completion of the education course.
With 30% of the population still living below the poverty line, the willingness to acquire higher education faces an acute financial constraint for many. Under the umbrella of FMFB’s social mission that prioritizes human capital development, Student Finance product aims not only to facilitate acquisition of tertiary education but also to contribute towards employment creation and empowerment of the youth.
The Student Finance loan product of FMFB is a first of its kind education loan in the market that makes the student share the loan repayment responsibility with his/her parent. The loan contract makes student the co-borrower with the parent, and offers extended repayment tenor options so that the student can start earning after completion of education and contribute towards the repayment of the loan. Additionally, the loan product has been competitively priced at 15% APR to ensure that maximum number of clients are able to afford this product and fulfill their dreams.

Loan Size Minimum: PKR 15,000

Maximum: PKR 150,000

Total loan amount over the study period can exceed PKR 150,000 but loan amount, at any given point in time, will not exceed PKR 150,000

Loan Amount Options Option 1: Series of Stand Alone Loans over the study period

Option 2: Continuing Loan, with principal enhancements over the study period

Loan Tenor and Repayment Frequency Option 1: 6, 12 months (Monthly Installments); 6 month(Bullet Installment)

Option 2: 24, 36, 48 months (Monthly Installments)

Collateral Existing Borrower: Personal Guarantee of Parent

New Client: One third party Personal Guarantee