China's commercial banks are experimenting with credit-record-based educational loans designed to allow students in need access to education.

China Daily Business Weekly reported that commercial banks in the country have often required applicants to submit collateral before granting loans to avoid credit risks.

Recently, however, the Industrial and Commercial Bank of China (ICBC) loosened its education loan application requirements and began granting loans to students with sound credit records.

With the recommendation of the student work division of universities, needy students can access State subsidized educational loans easily without submitting collateral, Li Yuanyuan, director of the Consumer Credit Division under the ICBC' s retail department, was quoted as saying.

Other commercial banks are also pondering enriching their educational loan varieties to include loans based on credit worthiness.

"After a year's study, students will have accumulated a credit record, which can be used as a reference when requesting a loan. Students can act as guarantors for each other in applying for the loans," Yang Mingsheng, vice-president of the Agricultural Bank of China, said.

College and university students have responded to the new credit forms enthusiastically, the newspaper said.

However, because China's credit check system remains incomplete, risks still exist, bankers said.