FirstEdu Loan: How To Get Short-term Loans Without Collateral for School Owners in Nigeria
Nigeria’s oldest bank, First Bank Plc, is offering a short-term loan without collateral, facility designed to provide funding solutions to school owners and other educational institutions nationwide through its FirstEdu product.
The bank in a publication last year, revealed that in 2019 alone it supported educational institutions in Nigeria with money to the tune of over N10 billion.
Majorly for primary and secondary schools, First Edu Loan was packaged to fund the schools’ working capital. Many times, logistics, staff hiring, environment improvement, and so on are borne by the school proprietors and proprietresses. This workload, plus the money constraints, stunts the growth of the school and staff, thereby creating a huge gap in demand-quality supply.
How to Apply for FirstEdu Loan
Here is a step-by-step procedure on how to apply for a First Edu Loan. Honestly, this application might just be the simplest loan application in the specified industry. See the step-by-step guide below:
- To Apply for a FirstEdu Loan,
- Download the Retail Loan Application Form
- Complete the form and submit to the Retail Team at the nearest FirstBank branch
Eligibility criteria for First Edu Loan
- For your school to qualify for the laon, you must have a student base of up to 100 pupils.
- Your school must also have a corporate account with any commercial Bank in Nigeria.
- Your school must be registered with the corporate affairs commission CAC
What documents do I need to access the First Edu Loan?
The school is required to provide the following documents in order to proceed with its loan application.
- Government approval to operate the school
- An evidence of the number of students in your school (school register, roll call, etc)
- The school’s CAC documents
- Other bank(s) statements (if any)
- School’s management profile
- The school’s cash flow
Do I need to provide collateral to get this loan?
No physical collateral such as building or vehicle is needed the only Collateral is undertaking to domicile school fees with FirstBank.
Can this facility be used to construct school buildings?
The facility is a short-term facility designed to finance working capital needs of schools. There is a product (Commercial Mortgage) available for schools who want to construct school buildings.
What amount can a school get from the bank under this product?
Loan amount range from N 500,000 to N5m for a 90 day period and Maximum Loan amount of N20m for up to 24 months.
When can a school apply for this facility?
You can apply today as this facility is available to schools all through the year.