If you are a student in Nigeria, you may be wondering about your options for getting a student loan in Nigeria.
There are a few different types of loans available, and we will discuss them in this section.
We will also talk about how to apply for a student loan, and what to do if you are having trouble repaying your loan. Interested? Let’s get started!
What’s A Student Loan?
A student loan is a type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books and supplies, and living expenses.
It may differ from other types of loans in the fact that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in school.
It also differs in many countries in the strict laws regulating renegotiating and bankruptcy.
Student loans can be obtained from a variety of sources, including the federal government, private lenders, and educational institutions.
Federal student loans are generally the most affordable and offer the most benefits, such as income-driven repayment plans and loan forgiveness programs.
Private student loans may have higher interest rates and fewer benefits, but they may be more accessible to students with poor credit or no credit history.
Before borrowing a student loan, it is important to understand the terms and conditions of the loan, such as the interest rate, repayment schedule, and fees.
It is also important to only borrow what you need and to have a plan for repaying the loan after graduation.
Eligibility Criteria For Student Loan In Nigeria?
Eligibility for student loans varies depending on the type of loan and the lender. However, there are some general requirements that most lenders share.
- Be a Nigerian citizen or permanent resident.
- Be admitted to a public tertiary institution in Nigeria.
- Have a family income of less than N500,000 per annum.
- Provide at least two guarantors who are civil servants of at least level 12, lawyers with at least 10 years post-call experience, judicial officers, or justices of the peace.
- Not have been convicted of a felony or any offense involving dishonesty or fraud.
- Not have been found guilty of examination malpractice by any school authority.
In addition to the above requirements, some lenders may have additional eligibility criteria, such as a minimum GPA or a particular course of study.
It is important to note that the Federal Government’s student loan program is still in its early stages of implementation, and there are currently no private student loans available in Nigeria.
However, there are a number of government-funded scholarship programs available to Nigerian students, and some commercial banks offer education loans to students who meet certain criteria.
Steps On How To Apply For Student Loan In Nigeria?
To apply for a student loan in Nigeria, you can follow these steps:
1. Check your eligibility.
To be eligible for a student loan in Nigeria, you must:
- Be a Nigerian citizen.
- Be admitted into a full-time undergraduate or postgraduate program at a public university, polytechnic, college of education, or technical and vocational education and training (TVET) school in Nigeria.
- Have a family income of less than N500,000 per annum.
2. Choose a lender.
There are a number of different lenders that offer student loans in Nigeria, including banks, microfinance banks, and non-governmental organizations (NGOs).
You can compare different lenders to find the one that offers the best terms and interest rates for your needs.
3. Gather your documents.
Once you have chosen a lender, you will need to gather the following documents to support your loan application:
- A copy of your admission letter.
- A copy of your academic transcript.
- A copy of your government-issued ID card.
- A copy of your proof of income (if applicable).
- Two guarantor letters.
4. Submit your application.
Once you have gathered all of the required documents, you can submit your loan application to the lender of your choice.
The application process may vary depending on the lender, but it will typically involve completing an online or paper application form and submitting the required supporting documents.
5. Get approved.
Once the lender has received your application, they will review it and make a decision on whether or not to approve your loan. If your loan is approved, you will be notified of the loan terms and conditions, including the interest rate and repayment schedule.
6. Accept the loan.
Once you have reviewed the loan terms and conditions, you can decide whether or not to accept the loan.
If you decide to accept the loan, you will need to sign a loan agreement and provide any additional documentation that the lender may require.
7. Receive your loan funds.
Once you have accepted the loan, the lender will disburse the loan funds to you or directly to your school.
The disbursement process may vary depending on the lender, but it will typically take a few days or weeks for the funds to be available.
Repayment Term For Student Loan In Nigeria?
The repayment terms for student loans in Nigeria will also vary depending on the lender.
However, most lenders will allow you to start repaying your loan after you graduate from university and complete the National Youth Service Corps (NYSC) program. The repayment period for student loans typically ranges from 5 to 10 years.
Pros Of Student Loan In Nigeria
- Accessibility to education: Student loans can help students from low-income backgrounds to access higher education, which can lead to better job prospects and higher earnings in the future.
- Flexible repayment terms: Many student loans in Nigeria have flexible repayment terms, which can make it easier for students to manage their finances after graduation.
- Potential low interest for government-backed loans: Government-backed student loans in Nigeria typically have lower interest rates than private loans.
- Investment in future earnings: A student loan can be seen as an investment in future earnings, as education can lead to higher-paying jobs.
Cons Of Student Loan In Nigeria
- Potential high-interest rates: Private student loans in Nigeria can have high interest rates, which can make them difficult and expensive to repay.
- Risk of overborrowing: Students need to be careful not to overborrow, as they may have difficulty repaying their loans after graduation, especially if they do not find a good job.
- Financial responsibility: Students with student loans need to be financially responsible and make sure to make their loan payments on time.
Organization Offering Student Loan In Nigeria.
There are a few organizations that offer student loans in Nigeria, including:
- EdFin Microfinance Bank: EdFin is a microfinance bank that is dedicated to funding the education sector in Nigeria. They offer student loans to students who are pursuing undergraduate and postgraduate degrees at accredited Nigerian universities.
- GTBank Student Loan: GTBank’s school fees advance is a loan facility designed to finance the payment of your child’s/ward’s school fees for schools in Nigeria only.
- Global Student Loan Corporation: Global Student Loan Corporation is an international student loan lender that offers loans to Nigerian students who are studying abroad.
- MPOWER Financing: MPOWER Financing is another international student loan lender that offers loans to Nigerian students who are studying abroad.
- Stilt: Stilt is an online lender that offers unsecured loans to international students, including Nigerian students.
- Future Finance: Future Finance is an online lender that offers loans to international students, including Nigerian students.
- IEFA: IEFA is a non-profit organization that offers educational loans to international students, including Nigerian students.
In addition to these organizations, there may be other lenders that offer student loans to Nigerian students.
However, it is important to do your research and compare different lenders before applying for a student loan.