As a student, a loan could go a very long way in solving a lot of financial problems at school. With it, you can pay for your tuition, rent, study materials and even food.
Getting a student loan in Nigeria is quite easier than you think. But firstly, you must understand that there is no national body that takes care of students loan or gives one, except through the education bank. Also, there are banks and other private body that gives loan to students, without collateral.
Naturally, you must meet the requirements to get a loan and should be ready to pay at the agreed time.
In this tutorial we would discuss, the requirements, how to process it and where to get a student loan in Nigeria.
Let's get started.
Different types of student loan in Nigeria
One thing we should be clear of, is that most students loans in Nigeria, if not all, are for student in tertiary institutions. Those in secondary schools and elementary school mostly get education grants.
- Federal Government Student Loan: This is done through the education bank.
- Loan from commercial bank: Most people think these loans are hard to get, but if you meet the requirements, it should be extremely easy.
Now that we've known the categories of student loans in Nigeria, let's take a look at the requirements.
Federal Government Student Loan In Nigeria
For federal government loans given to student, here are the required documents:
- Birth certificate (must be 18 years of age and above)
- Academic records: you must meet the requirements for admission to the school you choose. So make sure your records and results reach that.
- Admission letter in the case that you have already been given admission to a school.
- Three to four recent passports and a copy of all expenses (fees) from the school.
- Course of study: course duration. time; start and end date.
- An active bank account
- Name of your institution banker (Nigeria Education Bank)
Note: the requirements may change and vary according to how the federal government stipulate for different student loaning scheme.
Loaning terms and conditions
It is always advisable to know what the terms and conditions of a loan before you take it out. You wouldn't want to be paying an exuberant interest rate which you could have avoided if you knew the terms of the loan.
Having said that, you should know that terms and conditions vary a lot according to what the loaning body deem fit.
Generally, the amount you might get loaned would depend on the lender and your purpose of requesting a loan. This could be for, tuition fee, living expenses, to buy education materials and other fees related to school.
The period of loan is also another thing to watch out for. Everything being equal, the period of loan should be for your course duration. And as for repayment, usually, it is two years after graduation.
The federal government created the education bank scheme to enable the facilitation of loans to tertiary institutions student. Read more about the education bank.
Here is how it works. You apply for a loan to the education bank through a commercial bank. If you are approved, you get the loan from the bank and if you're not, you try again. Now the steps.
Step 1: Approach any commercial bank in the country.
Step 2: Open an account with them if you haven't.
Step 3: Deposit a sum of 2000 naira to your bank account at the bank. This would be your processing fee.
Step 4: Collect the loan application form from your school Dean of Student Affairs.
Step 5: Fill it and attach all required documents.
Step 6: Make all payments and submit the application form back to your university Dean of Student Affairs.
After completing the above steps, you should wait as the submissions are being processed.
When the processing is completed, the loan application would be approved. Then the ministry of education would release the names of approved students. You should be given a letter or contacted through other means, the amount disbursed to you would be conveyed to you in the letter.
Your name would be also be listed on the ministry of education website among other successful students.
You will be issued an identification number and identification card. Your allocated loan would be given to you through the bank you used.
Getting A Student Loan Through Commercial Banks
There are commercial banks that gives student loans. Let's see how to go about it.
- Visit any commercial bank in the country.
- Open an account if you don't already have one with them.
- Inquire from the bank customer service about loans for students. Make sure to request the terms and conditions.
- If you are okay with the terms and conditions, and you meet the requirements, collect the form and fill it.
- Submit the form with the required documents.
- Your loan application will be reviewed and processed. After this, you will get a loan if approved.
Make sure your reason for a loan is genuine.
Getting a financial institution to give you a loan under the pretense of a student loan, or if you don't need it, is totally wrong and might not give you a loan.
The loan duration in Nigeria for student is mostly two years after graduation, so you must think of a way to pay. A high income skill will go a long way in helping repay the loan.
Whatever you do, use the loan correctly .
On a final note, make sure to use the money on the reason you put in the application form. You wouldn't want to be in debt and still have some school expenses to pay.
And always remember that, if you don't pay up your loan quickly, the interest keeps rising.
We hope you are satisfied with this article, if you have any questions, you can leave it in the comment section and we will reply as soon a possible.