Student Loans In Nigeria
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A student loan is a type of loan that is specifically intended to assist students in paying for their educational expenses. Unlike other loans, student loans have lower interest rates and more flexible repayment plans.
The subsequent banks provide student loans in Nigeria:
1. First Bank
First Bank’s FirstEdu loan is designed to assist school proprietors in addressing funding gaps and upgrading school facilities. The loan package offers flexible financing with a repayment plan that spans 90 days. Borrowers can access up to ₦10 million without the need for any collateral as long as the school fees are domiciled with First Bank.
To be eligible for this loan, the school must have an existing account relationship with FirstBank for at least 6 months or 12 months with other banks. The target market for this loan is private schools duly registered with CAC and their State Government, and the school population must be at least 100 students.
2. GT Bank
GT Bank’s school fees advance is a type of loan that can be used to finance the payment of your child’s or ward’s school fees in Nigeria. The loan package allows you to borrow up to ₦5 million, and the maximum repayment period for each request is four months.
The interest rate for this loan is competitive, and you can get immediate access to the funds once your application is approved. To apply for this loan, you will need to submit a completed application form and an employer undertaking form.
In addition, you must provide a school fees bill and credit insurance. Finally, it is required that your staff terminal benefit is domiciled in GTBank or that you obtain a corporate guarantee.
3. Access Bank
The Access Bank student loan is a financial aid program that offers students short-term funding to cover tuition fees. Its primary aim is to ensure that students’ education process is not interrupted. This loan package provides an opportunity to receive up to ₦5 million, with an option to refinance the loan later. Remittance services are also available.
To apply for this loan, you must provide a completed application form, admission letter, and tuition advice. Additionally, you must submit a letter of domiciliation of your salary account or your parent/sponsor’s salary account, a copy of your employment ID or valid means of identification belonging to you or your parent/sponsor, and your BVN.
The bank will also conduct credit checks on your application.
4. Federal Government
The Nigerian government has approved the creation of education banks and student loan boards by states at reduced interest rates. This move is aimed at making it easier for students to obtain funds for their educational pursuits.
Additionally, the government has authorized the establishment of education funds by all states in the country. The funds will primarily be used for teacher development, secondary education, and a special intervention program for individuals with special needs.