If you need money for school and are considering applying for student loans in Nigeria. You must know the education loan givers in Nigeria, understand how they work, and the options available to you.
Continue reading to find out how to apply for student loan in Nigeria.
What Is A Student Loan?
A student loan is just like any other loan. It involves borrowing money, but for education.
Different Types of Student Loans?
Student loans in Nigeria are available from the government and private lenders. Federal student loan in Nigeria is available from the Nigerian government, while private loan in Nigeria for students are available through banks, lenders, and other financial entities.
Federal Government Student Loans
A federal student loan is an education loan in Nigeria issued by the government. It’s a good idea to start with government loans because they’re less expensive and typically come with more perks than private-lender loans.
Private Student Loans
Loans from a private lender, such as a bank or a non-bank financial entity, are known as private student loans. They can have fixed or variable interest rates and they frequently demand a cosigner from the student borrower.
Because interest is not subsidized, you’ll typically be required to start paying interest on the loan as soon as you get the money. Most education loan givers in Nigeria offer short–term loans. We will look at how to apply for student loan in Nigeria from private entities.
How Much Can One Borrow For Student Loans In Nigeria?
The amount you can borrow as student loans in Nigeria is dependent on many factors including your monthly income (as a parent borrowing for their child ward). The available private loan in Nigeria for students are issued by banks and come with stringent requirements like a salary account and good credit.
Since most students don’t have salary accounts, they’ll need a cosigner with a salary account. Then the amount they can borrow will be determined by the salary of the said cosigner.
For instance, as a student, your dad, guardian, family, friend, or relative can cosign your student loan to provide some form of assurance for the bank.
Private Student Loans in Nigeria
Here is the available education loan in Nigeria offered by Nigerian banks. Pay close attention to loan terms and requirements.
1. GT Bank School Fees Advance
GTBank is one of the top education loan givers in Nigeria. The GTB School Fees Advance was created to help parents and guardians pay for their child’s or ward’s school fees. Only members of staff of public and reputable private organizations who have salary accounts with the Bank are eligible for this facility.
Features:
- Access to funds to pay your child’s or ward’s school fees.
- Advance on school fees of up to N5 million. Per request, the maximum tenor is four months.
- Competitive Interest rate (repayments are made in equal monthly installments).
You can find more information on how to apply for a GTB student loan in Nigeria here.
2. Access Bank Advance for School Fees
The access bank advance school fees is a short-term loan in Nigeria for students designed to provide funding for parents, guardians, and students to clear school fees.
This education loan in Nigeria helps when you are looking for quick funds to clear your fees and partake in an examination or test.
Features:
- The application procedure is simple.
- Fast approval and disbursement.
- Repayment can be spread out over 4 – 6 months.
- 18% interest per annum.
- Only 1% management fee.
- 0.5 percent credit life insurance.
How Do you apply?
- To apply you need the following.
- Fill out an application form.
- Admission letter.
- A letter of domiciliation of your wage account or that of your parents/sponsor.
- A copy of your employer’s ID or a legitimate form of identification for you or your parent/sponsor.
- BVN.
You can find more information on how to apply for the Access Bank student loan in Nigeria here.
3. Wema Bank School Fees Advance Loan
Wema Bank is another education loan givers in Nigeria. They enable parents and guardians to cover their children’s expenses, up to 3 million Naira. To be eligible for this education loan in Nigeria, you must own a WEMA Bank account.
Requirements for Advance Loans for School Fees
- A Completed copy of the school fees advances form.
- Invoice for school fees/tuition.
- Proof of identity (National identification card, international passport, or voter’s card)
- Utility bill as proof of address.
- Payslip for the previous three months.
- Individuals who don’t have an account with Wema Bank must provide a six-month salary statement of account.
To apply for student loan in Nigeria, click here to download the form or go to your nearest WEMA Bank location.
Federal Government Student Loan In Nigeria
Unfortunately, there is no standard federal government student loan in Nigeria like its obtainable in advanced countries like the U.S. The Nigerian government approved the establishment of the student loan boards and education banks, but there is currently no news on that.
Alternative: A Way Out
So while there are few loans for students in Nigeria, there are several personal loans out there with amazing terms. The bottom line is to take a personal loan from a loan app or micro-finance bank.
See 10 top loan apps you can use to get quick funds for education.
After all, all the above-mentioned loans in Nigeria for students are short-termed and come at almost similar interest rates. Just ensure that you can pay back as at when due.