You’ll agree that getting into a higher institution in Nigeria can be financially demanding. Most times, in the course of getting admitted one can spend up to millions to do that. This means that one who is not financially buoyant may find it difficult to enter a higher institution despite developing the desire to study. If you’re in these shoes, then obtaining a student loan should be the best option for you. Student loans give you the required financial leverage to pursue your academic dreams. In this article, you’ll be reading about what student loans are all about, requirements on how to obtain a student loan in Nigeria, and institutions that you can get student loans in Nigeria. Let’s get into it!
What Are Student Loans?
Student Loans are loans granted to students or aspiring students who wish to further their education. This kind of loan is granted mainly by banks or under the umbrella of the Federal Government’s Ministry Of Education. It is different from other kinds of loans because student loans have relatively low-interest rates and friendly repayment plans. With it, everyone can get access to education and reach greater heights.
To get a student loan for yourself in Nigeria, there are some requirements you’ll need to meet. If you wish to apply for a student loan through a bank or the federal government, below are enlisted general requirements for you to get handy before you proceed:
Requirements For Obtaining Student Loan
To get a student loan in Nigeria, here are the eligibility criteria that you must meet:
1. Your family or a member of your family must have income less than N500,000.
2. Must have two guarantors. These guarantors should be:
• A level 12 civil servant.
• A lawyer with at least 10 years of experience.
• A judicial officer.
• An officer of peace.
3. Must have a clean criminal history. It is also advised that students stay away from examination malpractice of any kind during the duration of their student loan. If caught, the student may be stripped of his loan privileges.
4. Must have a cover letter signed by the head of their institution. The head of the institution may be Vice-Chancellor, Rector, or Provost.
5. Must provide a copy of the admission letter.
6. Must provide two letters from their guarantors addressing the bank chairperson in charge of student loans.
7. Must include recent passport photographs of the two guarantors.
8. Must provide evidence of employment status or details of employer(s).
9. If self-employed, interested candidates are advised to provide evidence of business registration such as Corporate Affairs Commission (CAC)
At this point, you’ve seen the requirements needed for obtaining a student loan. In Nigeria, banks are the major providers of student loans. The next subheading gives a detailed outline of banks in Nigeria where you can get student loans.
Banks That Grant Student Loans
The following banks in Nigeria are where you can get student loans in Nigeria:
Guaranty Trust Bank Student Loan
Guaranty Trust Bank offers student loans to students who need financial assistance to get into a higher institution. You get quick access to this loan within hours after applying. This is because Guaranty Trust Bank is among the banks known in Nigeria to prioritize education, especially among the youth.
With Guaranty Trust Bank, you can get loans of up to N5 million naira. Thanks to Guaranty Trust Bank, you can even apply for loans without paying the previous debt. However, to enjoy this, you’ll have to leave for four months before applying for another loan.
Along with other requirements mentioned earlier in this post, you’ll have to provide School Fees Payment Schedule, Credit Insurance, and Employer Undertaking Form.
Access Bank Student Loan
Access Bank Students Loan grants students with a loan amount of up to N5 million. This loan is provided for interested candidates to reach their short-term needs. The loan offered by Access Bank Students Loan can be used to pay school fees, departmental or faculty dues, and purchase of textbooks.
With Access Bank Student Loan, you can agree to renew the terms of your loan at any time you wish. However, in your pursuit of education, it is an important requirement that you allow nothing to disrupt your education during this loan period. Access Bank also allows remittance services for you to cover your loan debt.
For Access Bank Student Loan, you’ll be asked to provide additional documents such as Credit Checks, a Letter Of Domiciliation Of Your Account or Sponsor’s Account, a Bank Verification Number, and a government-issued ID card.
First Bank FirstEdu Loan
First Bank offers arguably one of the best student loan services in Nigeria. With First Bank FirstEdu Loan, you are not only involved in getting a loan but your institution is also involved. With First Bank FirstEdu Loan, you can pay back your loan in 90 days. Thanks to First Bank, students are allowed to borrow loans of up to N10 million to meet their urgent educational needs.
First Bank FirstEdu Loan requires a school to have over 100 Students before a loan can be granted to a student of that school. It is also required that a school should have an account with First Bank before a student from that school can obtain a loan. This is to ensure that First Bank and the school have a relationship before a loan can be granted to a student.
Federal Government Student Loan
The Federal Government Student Loan allows students who wish to study in tertiary institutions to do so by providing loans to qualified students for their tuition fees, upkeep, living expenses, and other related charges. With the 2024 amendment of this law by the Nigerian government, the family income barrier of N500,000 would no longer be put into consideration. This opens access to everyone wishing to further their education to do so without any barriers.
The Federal Government Student Loan stands out because it allows students to begin repayment two years after their NYSC arrangements. This is enough time for you to make money to pay back, don’t you think?
That’s not all, you can get the Debt Forgiveness waiver if death or an unforeseen occurrence happens to you that makes you unable to pay back.
Conclusion
This article has indeed been helpful to you. In this article, you’ve seen that student loans are not as scary as it seems. You too can get educated even if you don’t have too much money! Thanks to the Federal Government Student Loan initiative, you can get loans and begin repayment of this loan when you start working. Wouldn’t you want to try that?
