Student Loans in Nigeria: Best Loan Offers And How to Apply

Student Loans in Nigeria: In our recent article, we discussed how to apply for Federal Government Student Loan Initiatives (Tinubu Student Loan). However, this article is going to be beyond that. We are going to explore all the student loan options available in the country, and also show you how you can successfully apply for these loans as a student.

At the end of the article, I believe that you will;

• Have a good knowledge of student loans in Nigeria.
• Know student loan eligibility requirements.
• Know how to successfully apply for these loans.
• Know about different financial institutions offering student loans in Nigeria.
• Learn about government initiatives and programs supporting student loans.
• Understand the benefits and drawbacks of taking out a student loan.

Whether you are a student or parent/guardian looking for a loan to clear your child’s financial needs in school, we kindly advise you to follow the article to the end so that you will not miss any important information.

Introduction to Student Loans in Nigeria

Student loans have been one of the realistic ways for students to access money and attend to their financial needs

As a student in Nigeria, you are likely to face financial challenges, most especially when you do not come from a wealthy background or have a source of income.

I don’t need to tell you that accessing quality education requires a whole lot of money. From paying institutional fees, buying books and materials (handouts), securing accommodation, covering meal costs, transportation, and much more, you surely need a considerable amount of money.

When I was in the university, the amount of money I spent only on transportation was overwhelming. The university I attended is very large, with lecture venues spread across different places (Northcore, Southcore, and Mildlecore). The worst part was that the distances between these venues were too far to walk. One had to use a bus or Okada (motorcycle taxi) to meet up with lectures, and a drop was N300. So I do spend not less than N900 every day only on transportation.

Now, what about other bills and expenses? It’s plenty, right? And what if your sponsors are not financially buoyant to take care of all your financial needs in school? That’s where the development of student loans comes in!

Student loans are financial instruments designed to help students cover the costs associated with higher education. These loans are typically offered by financial institutions, governments, or educational institutions themselves.

The good news is that several institutions offer student loans in Nigeria. These institutions understand the costs associated with education and as such options to serve as a beacon of hope for Nigerian students pursuing higher education.

Continue reading as we explore these institutions and also show you how to apply for these loans successfully!

Student Loan in Nigeria Requirements

Every financial institution offering student loans has its specific requirements. However, below are the general eligibility criteria for obtaining a student loan in Nigeria:

• You must be a Nigerian citizen.
• Must have secured admission into a recognized tertiary institution (university, polytechnic, or college of education) in Nigeria or abroad.
• You must have an admission letter (either JAMB or institutional admission letter).
• Proof of Nigerian citizenship (e.g., birth certificate, national ID card, voter’s card).
• Some lenders require a guarantor (to ensure repayment).
• Some lenders require academic transcripts or results.
• You need to have good credit scores, to guarantee your loan approval.
• You must have a Bank Verification Number (BVN).
• Some lenders require bank statements or proof of financial status.

How to Apply For a Student Loan in Nigeria

To apply for a student loan in Nigeria, you first need to locate a financial institution that offers these loans. As I previously stated, many financial institutions offer student loans in Nigeria (and I will be listing the popular ones for you here).

Let me quickly tell you this, it’s not advisable to go for other types of loans aside from educational loans as a student. This is because educational loans and their terms and conditions are specifically optimized for students.

Pursuing other types of loans can cause complications if not managed carefully. For example, avoid borrowing from loan apps if you want peace of mind as a student. Only consider these apps if they offer student loans or have favorable terms and conditions for students.

I’ve seen many cases where students borrowed from loan apps but struggled or failed to repay due to the short loan terms and high interest rates associated with these apps.

Therefore, going for loans that are specifically designed for students should be your number one criterion when borrowing money as a student in Nigeria.

Without wasting much time, let’s take a look at the institutions that offer student loans in Nigeria.

List of Financial Institutions Offering Student Loans in Nigeria

Below is the list of financial institutions offering student loans in Nigeria, their requirements, and how you can apply:

Commercial Banks:

1. Access Bank

Students can apply for Access Bank Advance for School Fees loan. The loan amount is up to N20 Million, the loan tenor is up to 12 months, and the interest rate is highly competitive. Their repayment structure is also flexible and they provide refinancing.

Requirements:

• You must provide school fees bill/tuition advice.
• You must provide a copy of a valid means of identification.
• You must provide a recent salary bank statement (for salaried customers).
• You must provide a duly accepted offer letter & term sheet.
• You must provide one (1) year Bank statement of a corporate account (for business owners).
• You must provide copies of Business/company registration documents (for business owners).

How to Apply:

Visit any Access Bank branch near you or visit the loan page for application or more information.

2. Guaranty Trust Bank (GTBank)

GTBank also offers a School Fees Advance loan. However, the loan targets parents/guardians who want to finance the payment of their child’s/ward’s school fees for schools/institutions in Nigeria only.

They offer this loan up to N5 Million and the loan tenor is up to 4 months. The interest rate is highly competitive and the repayment term is very convenient.

Requirement:

• You must be a Nigerian citizen.
• You must be a member of staff of public and reputable private organizations in Nigeria.
• You must have a salary account domiciled with the bank.
• You must complete the loan application form.
• They request an employer undertaking and a school bill with the school’s bank account details.

How to Apply:

Visit the GTBank School Fees Advance loan page or any GTBank branch near you for your application or more information concerning this loan.

3. United Bank for Africa (UBA)

UBA offers a wide range of loans that can help you as a student to meet your financial needs or fuel your ambitions. Their loans are designed for individuals who need constant cash support, month in and month out, with longer-tenure credit.

Their loan amount is up to N30 Million, the repayment period is up to 48 months, and their interest rates are highly competitive.

One good thing about UBA is that they don’t bother borrowers with paperwork or documentation. Also, no awkward conversations and no waiting. Their loans are approved in minutes.

Requirements:

• You must have a functional savings or current salary account with the bank.
• You must duly complete the loan application form.
• You must provide a valid means of identification, be it the National Identity Card, Voter’s Card, or International Passport, among others.
• They request the employer’s undertaking to domicile salary with the bank.

How to Apply:

To apply, visit any UBA branch near you and request the loan application form, complete and submit it with supporting documents. Once the loan is approved, execute an offer letter detailing the loan terms and requirements.

4. Fidelity Bank

Fidelity Bank Back2School Loan is another loan offer available. Just like the GTBank School Fees Advance loan, it’s designed to support parents/guardians to settle their kids back in school comfortably.

To apply or know more about this loan, visit any Fidelity Bank near you.

Other financial banks you should consider for student loans are Stanbic IBTC Bank, Ecobank Nigeria, and Union Bank.

Microfinance Banks:

1. LAPO Microfinance Bank

With the LAPO School Fees Loan, students and parents/guardians can borrow from N20,000 to N200,000. This loan is designed for individuals to cover tuition fees, uniforms, Books & Transportation (School Bus).

The loan duration is 8 months with a grace period of up to 1 Month moratorium (Approximately 30 days after disbursement), the interest rate is 4% Reducing Balance (48% per Annum Reducing Balance), and the repayment mode is monthly.

Requirements:

• You must provide 2 guarantors.
• You must duly complete the application form.
• You must provide a valid means of identification, be it a national ID card, driver’s license, voter’s card, etc.
• You must provide a current utility bill.
• You must provide 4 recent passport-size photographs of yours.
• You must submit the loan application letter.

How to apply:

Visit the LAPO Microfinance Education Loan Portal or any LAPO branch near you for your application or more information concerning this loan.

2. NIRSAL Microfinance Bank

NIRSAL Microfinance Bank is a popular player in the Nigerian lending industry. They offer a wide range of loans including micro-loans and school-targeted loans.

With their loans, individuals can borrow a minimum of N50,000 to a maximum of N3 Million. Their loan tenor ranges from 30 days to 12 months and their interest rate is 9% per annum.

Requirements:

• Bank Verification Number (BVN).
• Applicant’s personal information (name, phone number, and address, among others).
• Applicant’s business details, such as name and address.

How to Apply:

You can apply for their loans by simply visiting their website and filling out the online application form or you can walk into any of their branches to complete the loan application form.

Government and Development Finance Institutions:

There are government and development financial institutions that offer student loans in Nigeria. These include:

1. Federal Government Student Loan Initiatives

The Federal Government Student Loan Initiatives, commonly referred to as the Tinubu Student Loan, is a program established by the Nigerian Federal Government to help students in higher education institutions address their financial challenges.

This initiative was signed into law on Wednesday, April 3, by President Bola Ahmed Tinubu following the Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024.

The program, as of the time of writing this article, is actively running and students from various federal government tertiary institutions can apply. However, the application is currently not open for state-owned and private institutions.

We have covered everything you need to know about this loan, including the application process. Kindly visit this page to apply or learn more about the loan.

Other government and development finance institutions where you can get a student loan in Nigeria are:

• Bank of Industry (BOI)
• Development Bank of Nigeria (DBN)
• Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL)
• Nigerian Export-Import Bank (NEXIM)

Online Lending Platforms:

Digital or online lending platforms are no doubt one of the fastest and easiest ways of accessing loans in Nigeria currently. They process and approve their loans within minutes making them a good option for any student looking for a loan to attend to a pressing issue.

However, they have their disadvantages which can be discouraging for many borrowers, especially, students. These include:

• Very high interest rates and hidden charges.
• Short loan tenor (mostly within 30 days, except for regular borrowers).
• Fraudulent activities.
• Lack of regulation.
• Data privacy concerns.
• Harassment and shaming.

Additionally, most of these loan apps don’t offer student-dedicated loans and their terms and conditions are unfavorable for students, just like we previously stated.

Therefore, it’s highly advisable to thoroughly conduct your research when borrowing from loan apps. These can help you in choosing the right platform that can serve you as a student.

This article covers everything you need to know about loan apps in Nigeria, including some of the best apps and how to apply for their loans. I will advise you to check the article if you want to borrow from digital lending platforms.

Benefits and Drawbacks of Taking Out a Student Loan

Taking out a student loan can be a significant financial decision with both benefits and drawbacks. Here’s a balanced look at both sides:

Benefits:

• Student loans enable access to higher education for those who may not have the financial means to pay upfront.
• Flexible repayment plans.
• Most student loans come with a grace period after graduation, allowing students time to find employment before they start repaying the loan.
• Student loans build a positive credit history once borrowed and repaid.
• Most student loans come with a lower interest rate compared to other categories of loans.

Drawbacks:

• Debt burden.
• Interest accumulation if borrowed and failed to repay on time.
• Negative impact on financial decisions if not managed carefully.
• Potential for default if failed to repay.
• Mental and emotional stress.
• Limited bankruptcy options.
• The ability to repay student loans is often dependent on the job market and the borrower’s employment situation.

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 student loans in Nigeria and can now borrow with ease!

Just like we previously said, taking out a student loan is no doubt an awesome way for students to access money and attend to their financial needs.

Running out of cash can be very suffocating and, of course, one of the worst situations that can happen to any student. Most schools don’t even give students a chance to hustle until the break. Now, imagine running out of cash in the middle of the semester! Well, the development of student loans is a blessing and has come to stay.

However, you must be cautious when borrowing. Don’t borrow for unnecessary things. Only borrow when it’s necessary and when there are no other options available to access money. Also, don’t borrow more than you can afford to repay.

By following the advice, we believe you can overcome the drawbacks of taking out a loan as a student and have a positive borrowing experience.

Now let’s hear from you!

What do you have to say about student loans in Nigeria? Is this article helpful to you?

Don’t forget to use the comment section below if you have an opinion or question concerning this!