HSBC has become the first bank to strike a deal with the Bar Council and offer special loans to Bar Vocational Course (BVC) students, it was announced earlier this week (11 December).

HSBC's London Barrister Commercial Centre in Fleet Street, has agreed to make loans available to Bar Students on favourable terms after reaching an agreement with the Bar Council and the four Inns of Court at the end of November.

Under the terms, applicants must intend to practice at the Bar of England and Wales, have obtained a place on the BVC and satisfied credit requirements.

The unsecured loan, which will typically offer an interest rate of 1% over HSBC's base rate, will require no payment for the first three years with repayment expected over a five-year period. The borrower's principle bank account, must be with HSBC while any part of the loan is outstanding.

The first loans will be offered from next year.

Previously, BVC students relied on mainstream commercial loans, which typically offer 2-3% above base rate and require immediate repayments. The timescale of this package has been tailored for those wishing to enter the Bar.

HSBC is first bank to formally come on board since the Bar and Inns of Court decided to introduce a 'soft' loan scheme, a move central to plans to open up access to the Bar by Lord Neuberger and Bar Council chairman Geoffrey Vos QC.

Vos told Legal Week: "We hope more banks will follow suit in due course and come on board as they see the success of this scheme."

Neuberger's final report into widening access to the Bar was unveiled last month (27 November). It included 57 recommendations such as enabling students to turn their BVC into a Masters degree if they are unsuccessful in gaining a pupillage.

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