First Bank of Nigeria’s Educational Loans and Financial Solutions
First Bank of Nigeria, founded in 1894, is one of the oldest and largest financial institutions in Nigeria. While they do not provide direct student loans, FirstBank offers several lending products, accounts, and services that can help parents, schools, and students meet educational costs and goals.
This comprehensive guide covers everything you need to know about First Bank’s educational financing solutions.
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Overview of First Bank’s Offerings for Education
FirstBank provides the following loan products and financial services that can be utilized for education purposes:
- FirstEdu Loan – Loans for registered private schools to finance assets, working capital, and infrastructure. Up to N200 million available.
- School Vehicle Loans – Asset financing to purchase vehicles for private schools.
- School Infrastructure Loans – Medium to long-term financing for building educational institutions.
- Salary Overdraft – Overdraft facility against salary for education costs.
- Personal Loan Against Salary (PLAS) – Loans for salaried individuals to pay school fees.
- FirstAdvance – Short-term digital loans up to N300,000 for education needs.
- Savings Accounts – Various savings accounts to accumulate education funds.
- Current Accounts – For everyday educational spending and bill payments.
- FirstMobile App – Mobile banking platform for convenient access.
Benefits of FirstBank’s Offerings for Education
FirstBank’s financial products and services provide the following advantages for education:
- Flexible financing – The variety of lending options meet both short and long-term education funding needs.
- Low-interest rates – FirstBank offers competitive interest rates as low as 16% per annum.
- No collateral – Products like Salary Overdraft and PLAS require no collateral.
- Fast approval – Digital loans like FirstAdvance enable quick access to funds within 24 hours.
- Easy account opening – Opening savings and current accounts can be done swiftly.
- Convenient platforms – Access your accounts anytime via FirstMobile for payments and transfers.
- Customer support – Dedicated relationship managers provide assistance and advisory services.
FirstEdu Loan for Schools
The FirstEdu Loan provides medium to long-term financing for registered private schools. Some key details include:
- Loan amount – Up to N200 million based on school size and needs.
- Tenor – Maximum of 60 months depending on use of funds.
- Interest rate – From 16% per annum.
- Usage – Construction, renovations, purchase of learning tools, and other institutional projects.
- Collateral – Debenture trust deed.
The FirstEdu Loan enables educational institutions to access the capital required to upgrade infrastructure and facilities for stronger learning outcomes.
Vehicle Loans for Schools
FirstBank offers vehicle acquisition loans tailored specifically for private schools and vocational training centers.
- Loan amount – Up to N20 million based on repayment ability.
- Interest rate – From 18% per annum fixed.
- Tenor – Repayment up to 48 months.
- Usage – Brand new and fairly used vehicles.
- Collateral – Tricycle or vehicle as collateral.
School administrators can acquire school buses, vans, and other vehicles to provide convenient and safe transport for students and teachers.
Salary Overdrafts for Education Costs
The Salary Overdraft allows salaried individuals borrow against their salary to meet pressing needs like paying school fees. Key highlights:
- Interest rate – 18% per annum on outstanding balances.
- Loan amount – Up to 60% of net monthly salary.
- Access – Overdraft through customer’s salary account.
- Repayment – Deduction from monthly salary till overdraft amount is cleared.
- Collateral – Employer’s undertaking to remit customer’s salary to FirstBank account.
Salary overdrafts provide quick access to funds to settle school expenses before payday.
PLAS – Personal Loans Against Salary
PLAS loans are ideal for salaried customers to pay for educational necessities like books, uniforms, and other personal costs.
- Loan amount – Up to N5 million.
- Interest rate – From 20% per annum reducing balance.
- Tenor – 12-48 months.
- Usage – School fees, books, devices, housing, medical, vacations, others.
- Security – Irrevocable domiciliation of salary.
No collateral is required for PLAS loans making them easily accessible for employees.
FirstAdvance for Urgent Education Expenses
FirstAdvance is a digital loan product that provides quick loans within 24 hours for urgent education expenses.
- Loan amount – Up to N300,000.
- Tenor – 30 days.
- Interest rate – 5% flat.
- Security – Debit authorization on customer’s account.
- Repayment – Principal and interest deducted after 30 days.
FirstAdvance can fund pressing education payments before month-end when funds run out.
Savings Accounts for Education Funding
FirstBank offers several savings accounts to help parents and guardians accumulate education funds for present and future expenses.
- FirstSave Account – Basic savings account with passbook and ATM card. No minimum balance.
- First Premium Account – Earns interest of up to 5% per annum. Minimum balance N10,000.
- Save4me Target Savings – Helps save towards a target education goal. No minimum balance.
- First Instant Savings (FIS) Account – Earns 4% interest per annum on balances above N5,000.
Regular savings contributions to these accounts can be an accessible way to fund a child’s education over the long-term.
Current Accounts for Education Spending
FirstBank current accounts allow parents and students conveniently manage education spending and transactions. Useful accounts include:
- First Current Account – For routine education expenses, payments, and cash withdrawals.
- FirstPremium Current Account – Offers higher withdrawals and transfers. Minimum balance N100,000.
- Domiciliary Accounts – Dollar, pound, and euro accounts to save for overseas education.
- KiddiesFirst Account – Savings account for children under 17 to learn financial discipline.
Current accounts provide the flexibility to seamlessly handle daily education-related payments and transactions.
FirstMobile App for Convenience
FirstMobile is FirstBank’s mobile banking application for convenient access on-the-go. It offers the following features:
- Account balancing – Check available balances in savings and current accounts.
- Funds transfer – Instantly transfer money to pay tuition fees.
- Airtime/data top up – Replenish airtime or data for school research.
- Fee payment – Pay school fees using QR, card or bank transfer.
- Transaction history – Track education spending.
- Limits management – Change ATM withdrawal limits.
FirstMobile provides quick access from any location to manage education finances.
How to Access FirstBank’s Educational Solutions
To access FirstBank’s educational lending, accounts, and payment solutions:
- Visit any FirstBank branch – Talk to a FirstBank officer to learn about available offerings. Opening accounts is faster at the branch.
- Go online – You can apply for some digital products like FirstAdvance and FirstSave online. The online account opening portal allows you open a new account from anywhere.
- Use FirstMobile – Download the FirstMobile app on your mobile phone to enjoy convenient banking services.
- Call customer care – Contact First Contact on +234 700 FIRST CONTACT for any questions and assistance with products.
With its range of banking solutions, FirstBank can help students, parents, and schools achieve their diverse financial education goals and needs conveniently.
Conclusion
In conclusion, while First Bank does not directly offer student loans, they provide a variety of lending, savings, current and digital banking solutions that can assist with paying for education costs for individuals, families and schools.
Products like FirstEdu, PLAS, salary overdrafts, FirstAdvance, and dedicated savings accounts offer accessible financing options for education purposes without extensive collateral requirements.
FirstBank’s services leverage both physical branch infrastructure as well as convenient digital banking on FirstMobile to deliver an all-around banking experience to meet diverse education funding needs.
So for anyone seeking financing and banking services to support education in Nigeria, First Bank provides a viable array of solutions worth exploring.