Niche Financing, UCC ink schooling mortgage partnership

From left: Sandra Lawrence, accounts manager, University of the Commonwealth Caribbean (UCC); Michael Gordon, chief innovation officer, UCC; Richard Mitchell, group manager — digital and social media marketing, UCC; Tennille Howell-Hussey, manager of Business Development and Consulting Institute, UCC Group; Dr Haldane Davies, president, UCC; Denniston Brown, managing director, Niche Financing Ltd; D’Andra Walters-Brown, operations assistant, Niche Financing; Charnell Graham-Francis, operations manager, Niche Financing; Sharmaine Ricketts, supervisor, business intelligence and promotions, Niche Financing; Diana Allen, manager, business development and marketing, Niche Financing; and Chase Raglan, business development officer, Niche Financing.

MICROCREDIT provider Niche Financing Limited and the University of the Commonwealth Caribbean (UCC) have entered into an education loan partnership which will see students from the tertiary institution benefiting from “flexible financial solutions” that will cover tuition.

The partnership, according to Niche, aims to satisfy individuals pursuing tertiary education at UCC by providing them with regular and pre-approved loans at discounted rates and flexible terms.

“Directors of Niche Financing Ltd and the University of the Commonwealth Caribbean have a vested interest to satisfy individuals pursuing tertiary education in a wholesome manner with special emphasis on affordability, flexibility and not a one-size-fits all,” the company shared in a press release.

New and returning students between the ages of 15 and 75, engaged in both online and in-person courses, are eligible for loans which are paid over to UCC upon approval. The loans cover tuitions for short courses up to doctoral programmes.

Applicants can apply for loans up to $1 million without a guarantor, Dianna Allen, business development and marketing manager at Niche, told the Jamaica Observer. However, the UCC education loan band goes up to $4 million.

“What we did, is make sure that the rates were not just affordable but we stretched the tenure to eight years, so persons who are pursuing masters and doctorates have more time and we came up with another inventive way called pre-approved loans,” she explained, noting that disbursements for the pre-approved loans are on a semester basis.

When asked about the interest rate range on the loans, Allen responded that for competitive reasons she was unable to share that information.

Pressed further, she noted, “We won’t disclose the rate at this time because it’s not a one-size-fits-all. What we do is have a range; we assess each individual based on their risk and then we apply the rate based on how much they are borrowing.”

This is the second education loan partnership that Niche has curated. Allen told Sunday Finance that the microfinance institution had previously secured an agreement with the Caribbean Graduate School of Theology (CGST) in the Corporate Area. The business development manager also revealed that the company is targeting other tertiary institutions willing to enter similar arrangements.

When asked how the education loan partnership was conceptualised, Allen outlined that it was due to hearing the harrowing accounts of individuals who either dropped out of degree programmes or took a break due to the financial constraints presented by the novel coronavirus pandemic.

“So we started with CGST and we signed a partnership and we decided to take it a step further and try UCC and they responded favourably,” she said.

During the signing ceremony Thursday at UCC’s boardroom in New Kingston, managing director of Niche Financing Denniston Brown said the partnership was timely given the demands to properly equip the population in “this technological and knowledge-based age, so that we will not be left behind in the economic and social backwaters”.

He added that both Niche and UCC share a vision of changing lives while respecting the dignity and aspirations of individuals for a certain standard of living.

Brown also pointed out that rising household debt stock due to wage freezes and the novel coronavirus pandemic were an indication that more Jamaicans “must become more astute in our money management”. To this end, Niche embarked on a programme promoting responsible financing.

“When COVID-19 came it clearly demonstrated that we need to be prepared; we need to make some allowance to cushion these types of challenges from time to time,” he noted.

However, he added: “We don’t believe that doing good business is by any means mutually exclusive to us exercising concern and compassion for our customers… And we believe this agreement which now exists between UCC and Niche will certainly impact the students to receive affordable rates and flexible terms.”

Brown reiterated that the new loan product underscored Niche’s commitment to education, which was negatively affected by COVID-19.

Dr Haldaine Davies, president of UCC, was equally elated for the signing of the agreement and expressed gratitude to the Niche Financing team for considering the tertiary institution for such an opportunity.

“Today, we’re extremely proud here at the UCC for this moment, for this collaboration. We are committed to our students, we are committed to improving their lives, we are committed to making sure that people feel the impact that growth and development can have on various individuals, their families, their communities, this great nation of Jamaica, the region and the world,” he said.

Sharing that the Caribbean faces a challenge in financing education, the UCC president asserted that governments need to increase their investment in education.

“We have left up to a large degree to allow individuals to finance their own education and sometimes it can be a real struggle,” he continued, adding: “Here at UCC we have students that face financial challenges also; we have a number of students that are unable to go from semester to semester because of not being able to find that extra dollar to get beyond the wall.”

But even as the tertiary institution faces limited resources trying to hire the best individuals to transmit knowledge from the classroom, Davies said the school is willing to assist where possible through scholarships and other forms of finanical assistance, including making concessions to tuition fees.