What is the meaning of LOAN?
A loan is a request for the transfer of money by one party to another after signing an agreement to pay back at a given time and in most cases with agreed interest.
It could also mean a form of debt incurred by an individual or other entity. The important fact is that the borrower must agree to a certain set of terms including any finance charges, interest, repayment date, and other conditions before the loan is disbursed.
Types of loans
There are different types of loans according to individual needs. People apply for loans to serve different needs.
These are some of the types of loans we have:
- Auto Loans
- Student Loans
- Mortgage Loans
- Home Equity Loans
- Credit-builder Loans
- Debt Consolidation Loans
- Payday Loans
- Small Business Loans
- Title Loans
- Pawnshop Loans
- Boat Loans
- Recreational Vehicle (RV) Loans
- Family Loans
- Land Loans
- Pool Loans etc.
Documents Required
- Loan application form (you will need to apply for the loan by filling an application form)
- Proof of identity (Birth certificate, driver’s license, passport etc)
- Employer and income verification (proof of income is important)
- Proof of address (have any of the following: Utility bill, voter registration card etc)
- Work on your credit score. (credit score will help the lender know if you are indebted any other person).
- Any other documents that may be required by the bank.
Frist Bank of Nigeria FirstEdu Loan
The FirstEdu loan is available to Private schools owners who require extra funds for the smooth running of their school operations. Schools with CAC registration but without Ministry of Education approval can access up to N2million for 90days. Private pre-primary, primary, secondary schools, A’ level Tuition Providers registered with both State Ministry of Education and Corporate Affairs Commission.
Requirements
- Available to all private schools duly registered with CAC (either Government approved or not).
- Tenor is from 90 days to 12 months (terms and conditions apply).
- Maximum Loan amount is N20m.
- Schools with CAC registration but without Ministry of Education approval can access up to N2million for 90 days.
- Finance of operational vehicles for schools (new and fairly used)
- Asset acquisition of up to N20m for 24 months.
- Collateral is undertaking to domicile school fees with FirstBank.
- School must have been in account relationship with any bank for a minimum of 12 months.
- School must have a minimum student population of 100.
Brief Description of the FirstEdu Loan
A ₦5B intervention fund targeted at Schools and relevant educational institutions (in ME & SME categories only) that have been in operation for over one year, and with minimum students’ population of 100 (one hundred).
Interest Rate
Fixed interest rate at 9% per annum (all-inclusive).
Loan Tenure
- Twelve (12) months or less for loans less than or equal to N1 million
- Twenty-four (24) months for loans greater than N1 million
- Loan Amount
- Maximum of N5 million.
Eligibility Requirements
- Must be a resident of Lagos State
- School or Training Institute must be registered with the CAC and operational for at least 1 year
- Have at least 100 students registered for a whole year
- Must provide Two (2) Guarantors with a sizable income
- Clean credit report
- Evidence of Tax Payment
Required Documents
- Application form
- CAC Documents
- 6 months bank statement
- LASRRA ID (Lagos State Residency Registration) of the borrower
- Evidence of Tax payment
- Bank Verification Number (BVN)
- One (1) Guarantor who must have verifiable LASRRA registration – (Below N500,000)
- Two (2) Guarantors who must have verifiable LASRRA registration – (Above N500,000)
Here’s how to apply for FirstEdu Loan