IFC Launches Chile Student Loans Program

The IFC has partnered with DuocUC, a higher education institution in Chile, and Banco de Crédito e Inversiones, to establish Chile’s first private financing program targeting low-income students. The program is expected to originate loans totaling CLP27bn over several years. DuocUC will assume the first loss risk of the portfolio of student loans, while IFC and BCI will each cover up to CLP10.13bn of senior risk. BCI will assume the role of fund provider and administrator of the loan portfolio. The IFC is actively pursuing similar projects in other countries.