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How to Get Students Loan in Nigeria
You want to get Students Loan in Nigeria? To get a student loan or scholarship to cover your tuition fees and other education expenses in the Nigerian universities, this is where to start. Now if you are looking for a Nigerian student loan, you need to know what type of Nigerian government loans exist, make sure you read the article completely to find answers to the questions on How to Get Students Loan in Nigeria as requested by Edustuff fans.
Types Of Students Loan in Nigeria
- Loans from the Federal Government of Nigeria: These are for those who are studying at a tertiary level. They fall under the National Youth Service Corps (NYSC) Loan Scheme.
- Loans from the Loans Board: These are for those who are studying at a tertiary level. They fall under the Postgraduate School Education (PSE)/Junior Staff of the Banks Loan Scheme.
Under both schemes, you can borrow depending on your needs and academic performance by meeting the necessary criteria. But before we proceed, we need to take a look at what qualifies you to apply for a loan in Nigeria and the Nigerian government rules which govern them.
Eligibility To Get Student Loan in Nigeria
To be eligible to get a Student Loan in Nigeria, you should meet the following requirements:
- You must be 18 years or above.
- You must meet the criteria of your school. Refer to them for your qualification and academic requirements. Do not exaggerate on them because they may deny your loan application. If they do, you do not have anything to lose but time and money because the money is available only for those who qualify under the rules.
- You must satisfy the Nigerian government rules. For a Federal Government’s student loan, the minimum duration of study is two years and can go to six years, depending on your course. While for a Loans Board student loan, the minimum duration of study is one year and can go to three years, depending on your course.
- Your age must not be more than 35 years if you are applying for a Federal Government’s loan or up to 40 if you are applying for a Loans Board loan.
- For a Federal Government’s loan, you must be a high school graduate. You may also qualify for the PSE/ Junior Staff of the Banks Loan Scheme if you have a post Junior School Certificate (PSJC) or an OND/OND with Upper Credit.
- For a Loans Board loan, you must be employed with a fixed monthly wage of NGN 5,000 and possessing the necessary skills to pursue your course. If you are not employed but are an entrepreneur with fixed capital and business, that is also acceptable.
- For both schemes, you should have a valid bank account. Those who do not have a bank account can easily get one online. There are several banks offering comprehensive services to cater for all your banking needs and security concerns.
- You must apply for the loan within the period specified in the guidelines. In case of any delay, you may miss out on a Nigerian Government’s loan because they are very strict on timelines.
7 Ways to Get Students Loan in Nigeria
Schools and universities are still free, getting loans to pay for school can be quite a challenge. Fortunately, these 7 effective ways to get student loan will guarantee you appropriate funding for your tertiary institution:
- Apply for scholarship from banks listed on NBS, NAB, PIB or CBN
Banks with branches in Nigeria are usually very supportive of the idea that you should get a scholarship before getting a loan.
While this is not an option for all students, it’s certainly something to consider especially if you are from a poor, rural family that has little access to financial support. Take advantage of the opportunity and start applying for small scholarships online.
- Apply for loan from private lenders
There are quite a number of private lenders in the Nigerian financial industry. A good number of them have special schemes for helping students get loan as well. So, before you proceed to the government to apply for loan, Edustuff advice you to consider the private institutions first. Remember, you might get better interest rate with private institutions than government ones.
- Submit applications online
Unlike most countries, Nigeria strictly prohibits any form of online application process for the purpose of acquiring student loan. With many other nations moving toward an online application system, Nigeria is one of the few remaining countries that still require a visit to another country’s embassy or consulate in order to acquire a student loan.
Therefore, Nigerians must visit Brazil or Canada in order to apply for their desired student loans through those respective institutions.
- Get funds from friends and family members
Whether you make and sell shoes, bake cupcakes, paint watercolors, or work in a restaurant—you can borrow money from family or friends to get your business off the ground. The key is to be realistic about the amount of time and money it will take you to build your business before asking for a loan.
If you’re still uncomfortable with borrowing funds from friends and family members, consider taking out a loan through an online lender.
- Apply for loans from local banks and Microlenders:
Contrary to popular belief that student loans are only available for students abroad, it is shocking to discover that there are actually several local banks and Microlenders in Nigeria who provide loans for Nigerian students. It is imperative however, that one does a lot of research before applying for loans locally as the interest rates may be a bit higher than what’s offered by international lenders.
- Apply for Microfinance
There is microfinance in Nigeria that provides loans to people who have never taken a loan before. The interest rates they provide differ from 9% to 25%. These loans are smaller and will take time to repay.
- Apply for international loans
International loans are believed to be the most reliable and reputable ones. These are offered by two major sources- foreign governments and private banks. Private banks act as middlemen between the borrower and creditor; it is harder than it sounds to get an international loan because you will have to find a private bank that is interested in your story. Foreign governments also offer international loans, but these are usually given on limited terms, so you may not qualify for one.
Tinubu Students Loan 2023
President Bola Ahmed Tinubu (GCFR) signed into law, The student loan bill, which provides for interest-free loans to indigent Nigerian students- Steps to access the student loan.
Students applying for loan under this Act must apply to the Chairman of the Bank through their respective institutions upon satisfaction of the following conditions:
(i) Student must have secured admission into any public Nigerian University, Polytechnic, COE or TVET school.
Applicant income or family income must be less than N500,000 per annum; Applicant must provide at least two civil servants as guarantors: of not less than level 12 years in service; or a Lawyer with at least 10 years post-call experience; a Judicial officer; or a Justice of Peace.
Students who have defaulted in previous loans; found guilty of exam malpractices, felony, drug offenses will not be considered.
Students with parents who have defaulted in respect of previous loans will not be considered.
All Applications will be submitted through the Students Affairs Office of each Institution via a list of all qualified applicants from the institution accompanied by a cover letter signed by the Vice Chancellor or Rector or the head of the institution and the student affairs.
Any beneficiary of the loan to which this Act refers shall commence repayment two years after completion of the National Youth Service Corps programme.
Student loans are not easy to get in Nigeria, and this can be very frustrating for the students who want to study further or start their own business but cannot borrow money without guarantees of payback such as previous employment history or other collateral.
Thanks for reading.