Sinosafe Insurance Company has introduced China's first student loan insurance policy in Changsha, Hunan Province.
Under this new insurance, the term of the student loan has been prolonged from three years to six years after a student's graduation and the policy holder of the insurance is not only limited to poor students.
Sinosafe has launched this student assistance loan insurance because banks are often unwilling to offer loans to students because of the high risk.
Sinosafe promises to the banks that it will pay the loan on behalf of the students in case of the latter's death, loss of work ability and inability to pay off the loan for a consecutive of 12 months.
