Bank of China (BOC) recently launched a new service to grant loans of foreign exchanges to those who want to study abroad, according to a Beijing Daily report.

Loan applicants are required to repay the banks in foreign exchanges and provide reliable financial guarantee.

Other basic requirements for the loans are: the money can only be granted to those studying overseas for a master's degree or higher; the length of maturity is limited to between one and six years; the loan is limited within 80 percent of the tuition and living expenses to be needed abroad; and no single loan can exceed40,000 U.S. dollars.

BOC has loaned 200 million yuan to those studying abroad, and reported no bad loans so far, the paper said.