Student loan in Nigeria are created to help students pay for post-secondary education and some attached such as tuition fees, book, supplies and some other expenses.
Since education has become a necessary in the world we are right now, people find it ID to move with trend and go to school to acquire knowledge.
However finding the school fees can be quite difficult for a lot of people especially people who are in private higher institution which are obviously and usually more expensive than the regular government owned higher institution.
Types of Student loan in Nigeria.
1. Loans from loan board
These are for does who are studying at a tertiary level they fall under the postgraduate school education of the bank loan scheme.
2. Loan from the Federal Government of Nigeria.
These are for does who are studying at a tertiary level these categories of people fall under the National youth service corps NYSC loan scheme.
Eligibility to get student loan in Nigeria
For you to qualify to get a student loan in Nigeria you must be 18 years or above
You must meet the criteria of your school
To be eligible to get a student loan you must satisfy the Nigerian government rules.
Your age must not be more than 35 years if you want to apply for a Federal Government loan or up to 40 if you are applying for a board loan.
For a loan board loan you must be employed with a fixed monthly wages of 5,000 naira and processing the necessary skills to pursue your course.
For both schemes you should have a valid bank account if you don’t have one you can easily get one online.
You must apply for the loan within the period specified in the guideline in case of any delay you may miss out on a Nigeria government loan because they are very strict on timeline.
Who gives students loan in Nigeria?
There are four Bodies that offer student loan in Nigeria and they are,
- GT bank student loan
- Access bank student loan
- Firstbank students loan
- Federalgovernment students loan.
Here is what you going to need to get GT bank students loan.
1. A completed form and undertaking employee form.
2. Your school fee bill and credit insurance
3. Staff terminal benefits
Access bank student loan requirements are;
- An application form (completed)
- Your admission letter to your school
- Your BVN
- Tution advice
- Aletter of domiciliation of your parents or sponsors salary account
- Yourparents valid identification
note* In access bank you can get up to 5 million naira loan.
First bank first edu loan and what you need for the loan
- Your school must be populated with more than 100 students.
- You have access to a maximum amount of 10 million naira
- Your school must have been in account relationship with first bank for 6 months or 12 months with any other banks.
How to pay back Student loans In Nigeria
There are ways to pay back the student loan given by the government
- First option on how to repair loan is to make interest payments why you are in school. The payments can be as low as 10,000 naira or it can cover the amount of the interest that is acquiring on the full stop so after graduating and you have passed the six-month Grace. He will then begin making full payment on the interest and principal.
- The second way to repay student loan by his by choosing the department until after you have graduated. Thismeans you won’t be required to pay anything on your student loan until you have graduated and the 6 months Grace. Has ended
- Another way you can repay your student loan is to make full payment on both the interest and the principal why you are in school.
What are the interest rates on student loan in Nigeria?
There are two type of interest rate attached to student loan which are fixed rate and variable rates.
Fixed interest rate
Fixed interest rate is the same all through the lifespan of the loan unless you refinance or consolidate your student loan. In fixed rate interest are usually higher than the lowest advertise variable rate because you are trading some flexibility for stability.
Variable interest rate
Variable interest rate is often starts much lower than fixed interest rate but it can also go much higher.
This is because variable interest rates are based on an outside market influenced rate. The interbank offer rate and is the interest rate that bank used to lend money to each other. Now if these Goes up, your variable interest rate will go down.
Decision on the type of interest rates you take.
In order to choose a comfortable interest rate for your student loan former between a fixed and variable interest rates can be disturbing.
If you want to lose the weight increase choosing a variable rate can often mean pay much less interest over the lifetime of the loan for when you want to know the exact amount you will be paying for student loan amount a fixed rate interest may be a better choice.
Before you take any loan in Nigeria especially student loan korma you should get all the necessary information before making decision on which loan to get. Take time to study and understand all the information provided before applying for any loan.