Education Loan in Nigeria: How to Apply & All You Need to Know

Are you a parent, student, or educational institution owner looking for an education loan in Nigeria? If your answer is yes, then continue reading, you’re on the right page!

As we all know, education is the key to success. It remains the best place to acquire knowledge and build a foundation for the future.

We need education in various aspects of our lives, most especially in this dynamic nature of the world.

Nevertheless, one needs to be financially buoyant to fund education and maintain a smooth learning environment.

Due to the rising cost of education and various financial challenges, individuals may wonder where to source funds for their education. This is where education loans come into play.

The good news is that this article comprehensively addresses and provides a solution for anyone looking for an education loan in Nigeria.

We kindly advise you to read to the end to avoid missing any important information.

Introduction to Education Loan in Nigeria

Education loans in Nigeria represent a crucial pathway for aspiring students to pursue their academic aspirations.

As efforts continue to refine these financial instruments, the goal remains to empower individuals from diverse socio-economic backgrounds to access quality education and contribute meaningfully to society.

In Nigeria, there are a lot of financial institutions or lending platforms that offer education loans.

These financial institutions understand the impact of education on our day-to-day lives and have opted to support individuals who are financially down and need funds to fuel education.

There are different categories of study or education loans in Nigeria. Some are provided to support parents in meeting up with education expenses for their children, while some are provided for owners of educational institutions to enhance their facilities.

This development has helped a lot of individuals build excellent learning environments and as well economically support active parents/guardians who have the willingness to educate their children in their admired schools.

The good news is that we will be considering both categories of education loans in Nigeria on this page for an optimum result.

Additionally, we will provide you with the necessary tips that can help you to get your loan with no stress. But before that, let us quickly look at what you need to get an education loan in Nigeria.

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Requirements for Education Loans in Nigeria

Just like any other loan, there are certain eligibility requirements you must meet to get an education loan in Nigeria.

However, these eligibility requirements are not uniform or standardized. Every lending institution has the criteria that govern its lending system.

So for an accurate result, it’s advisable to check the specific criteria of the lender you intend to borrow from.

Notwithstanding, let me bring to you some of the common criteria required by most lenders for an education loan in Nigeria:

• You must have a valid means of ID, be it a national ID, driver’s license, voter’s card, or international passport.
• Recent passport-size photographs are required.
• Some lenders require guarantors (Mostly 2).
• You must have good credit scores.
• You must duly complete the loan application form.
• You must not have any criminal record.
• No previous loan defaults.
• You must be a Nigerian or a legal citizen of the country.

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Education Loans Available in Nigeria

Below is the list of education loans in Nigeria:

1. Access Bank Education Loan

Access Bank Plc, owned by Access Bank Group, is one of the leading financial institutions in Nigeria. This bank initially started its operations on May 11, 1989, and is now having the highest customer deposit in Nigeria.

They offer convenient and attractive financial services, making them a favorite banking option for many people in different parts of the world.

Access Bank is also known for offering different types of loans, including education loans.

They have an “Education Loan” offer to help school owners maintain high-quality education and acquire a state-of-the-art infrastructure and modern amenities.

This bank also provides an “Advance for School Fees” loan to help parents/guardians with short–term financing to cover tuition fees for their children/wards. You can also use this loan offer to finance related study programs like undergraduate, postgraduate, and professional examinations.

With the Access Bank Education Loan, you can borrow from N1 million to N10 million with a termly repayment structure.

As for the Advance for School Fees, you can borrow up to N5 million and the repayment period is up to 6 months.

One good aspect of access bank education loans is that they offer competitive interest rates, and tangible collateral is not mandatory.

You can visit the Access Bank Education Loan or the Advance for School Fees webpage to apply or learn more about these loans.

2. Lapo Microfinance Bank Education Loan

Lapo Microfinance Bank, in full, Lift Above Poverty (LAPO) Organization, is no doubt one of the most popular of its kind in Nigeria.

This poverty-focused Non-Governmental Organization was established in 2007. They later obtained their license from the Central Bank of Nigeria (CBN) to operate as a microfinance bank in 2010. In 2012, they were pronounced as a National Microfinance Bank.

Lapo provides a wide range of financial products. Their goal is to bring solutions and assist various kinds of enterprises to help them grow.

This financial institution also provides education loans. These loans are categorized under two main product offerings, which are the School Fees Loan and the School Improvement Loan.

The school fees loan is provided to support parents/guardians in paying their children’s bills in school, and the school improvement loan is designed for education institution owners to help them maintain a quality and standard education.

With LAPO School Fees Loan, you can borrow from N20,000 to N200,000. The interest rate is 4% per month (48% per year), the repayment mode is monthly, and the grace period is 1 month.

As for the School Improvement Loan, you can borrow from N250,000 to N10 Million. The interest rate is 4% per month (48% per year), the grace period is 3 to 18 months, and the repayment mode is termly, based on the school’s level of income.

You can visit this page to apply or learn more about the Lapo Microfinance Bank education loan.

3. First Bank FirstEdu Loan

First Bank, in full First Bank of Nigeria Limited, is another reputable financial institution that offers an education loan in Nigeria.

This bank has a dedicated education loan offer called FirstEdu Loan. The loan is provided to support the financial needs of educational institutions in Nigeria that are duly registered with the Corporate Affairs Commission (CAC).

With this loan, you can borrow up to N25 Million. However, it is subject to 50% of the termly fee collection. Meaning that the loan amount you can get is determined by your business capacity to generate revenue through termly fee collection.

You can visit this page to apply or learn more about the First Bank FirstEdu Loan.

4. Sterling Bank One Education Loan

Sterling Bank One Education Loan is another loan option for you if you are looking for an education loan in Nigeria!

The One Education Platform is designed to provide magnificent services across the entire value chain in the educational sector. The beneficiaries of these services are students, parents, teachers/lecturers, vendors, school administrators, and non-academic staff, among others.

With their loan offer, educational institutions can access up to N20 Million. The loan period is up to 120 days. No collateral is required.

You can visit this page to apply or learn more about the Sterling Bank One Education Loan.

5. Zenith Bank Education Loan

Zenith Bank Plc, one of the largest financial service providers in Nigeria, is known for offering different types of loans.

They also have an education loan offer, designed to provide short-term financial support to enable parents/guardians to pay tuition fees for their children/wards.

With the Zenith Bank Education Loan, you can borrow from N100,000 to N500,000. The school fees loan you borrow will be paid directly to your child/ward’s school.

For loans related to Junior School education, the maximum repayment period, or tenor, is 3 months, and for loans associated with Tertiary Institutions (higher education such as colleges or universities), the maximum repayment period is 9 months.

To access Zenith Bank Education Loan, parents/guardians must have a salary account with the bank, provide an invoice of school /tuition fees, and complete the loan application form. The Child/ward must also have an account with the bank to be eligible for the loan.

You can visit this page to apply or learn more about the Zenith Bank Education Loan.

6. GT Bank School Fees Advance Loan

Are you looking for a loan to finance the payment of your child’s/ward’s school fees in Nigeria? Then, the School Fees Advance loan, provided by Guaranty Trust Holding Company PLC, is another loan offer for you!

However, this loan is designed for individuals who are employed by public and well-established private organizations and have a salary account with the Bank.

With the GT Bank School Fees Advance, you can borrow up to N5 Million. The maximum tenor is 4 months from the time of the request, and the repayment is structured for every month.

One good thing about this loan is that it comes with a highly competitive interest rate and borrowers can have immediate access to the funds once approved.

You can visit this page to apply or learn more about this Loan.

7. Fidelity Bank Back2school loan

Fidelity Bank Back2school loan is another awesome solution for you if you are looking for an education loan in Nigeria!

This financial institution understands that parents/guardians need funds to settle the kids back in school comfortably, and by so doing, opted to bring an instant financial solution by providing this loan offer.

With Back2school, you can get up to N5 Million. The tenor is 12 months and the interest rate is 2% per month (24% per annum).

School owners can also borrow up to N10 Million with Fidelity Bank Eduloan.

You can visit this page to apply or learn more about Fidelity Bank education loans.

8. FCMB Education Loans

First City Monument Bank (FCMB) is another financial service provider that offers education loans in Nigeria!

Whether you are looking for a loan to support your school business or get your children back to school, this bank got you covered.

They offer two categories of education loans; School Support Loan and Back-to-School Loan.

Schools and educational institutions can borrow up to 20 Million with the School Support Loan. The repayment plan is 24 months and there is no collateral required.

As for the Back-to-School Loan, you can borrow up to N200,000. No collateral, no paperwork required.

You can visit the FCMB School Support Loan or the Back-to-School Loan webpage to apply or learn more about these loans.

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How to Apply for an Education Loan in Nigeria

You can apply for an education loan in Nigeria by visiting any of the financial institutions provided above.

Most of these platforms provide a convenient way of applying for these loans online. However, it’s advisable to physically visit any of their branches for an effective result.

Tips for Getting an Education Loan in Nigeria

Getting an education loan in Nigeria can be challenging, but with the right tips and approach, you can get yours without stress.

Below are the tips you can use to hunt for an education loan to make your academic dreams a reality:

• Conduct your research about education loans.
• Sharpen your credit score.
• Understand the eligibility criteria of the loan you want to apply.
• Evaluate the repayment terms of the loan you want to apply.
• Gather necessary documentation.
• Seek professional advice.
• Also, Check government programs.

FAQs

Can a student get a loan in Nigeria?

Ans: Yes, a student can get a loan in Nigeria provided he/she meets the eligibility requirements for the loan.

How to get a school fees loan in Nigeria?

Ans: To get a school fees loan in Nigeria, you need to look for a financial institution that offers school fees or education loans in Nigeria and apply.

Some of the financial service providers that offer school fee loans in Nigeria are Access Bank, Lapo Microfinance Bank, Zenith Bank, GT Bank, Fidelity Bank, and FCMB among others.

Where’s the best place to get a student loan?

Finding the “best” place for a student loan in Nigeria is like choosing the juiciest suya spot on campus – it depends on your taste and budget. There ain’t no one-size-fits-all.

However, for an effective result, consider going for:

• Federal Government Student Loan Scheme.
• State Government Programs.
• International Education Loans.
• Duly registered financial institutions.

Final Thoughts

Thank you for following this article to the end! I believe that by now you have understood everything you need to know about getting an education loan in Nigeria and already finalized your decision.

I would love to advise that before you go ahead to borrow, research like crazy! Compare interest rates, repayment terms, and hidden fees across different financial institutions. Knowledge is power (and saves you money!).

Finally, it’s advisable to borrow smart, not just for the party. Only borrow what you need. Remember that irresponsible borrowing can negatively affect your financial status and can lead to bad credit scores.

don’t forget to bookmark this page as we will be updating it frequently with the latest education loans in Nigeria!

If you have any opinion or question concerning this don’t forget to use the comment section below!

Source: Instantmoni.com.