People have a myriad of reasons for considering getting a loan. Amongst these reasons could be to fund their dying businesses, start up a new business, or settle debts. Whatever reason it is you have for considering getting a loan, FirstBank has got you covered.
In this article, you will learn about the various FirstBank loan products, and as well, how to obtain them. These loans do not come without requirements, however, but as a FirstBank customer, you should be able to provide these requirements easily.
There are different types of FirstBank loan packages. We will start by becoming familiar with these types of loans; learn about their requirements, and how to get them.
- FirstAdvance
- FirstEdu
- First Bank Car Loan
- Personal Home Loan
- FirstCredit
FirstAdvance
The top on my list is FirstAdvance. This type of loan is suitable for salary earners who have consistently received a salary for the last six months. The account of the salary earner has to be domiciled with FirstBank to stand a chance. The maximum amount that can be loaned for a salary earner is N500,000 (five hundred thousand naira), and this is subject to a 50% net average salary of three months. The eligible amount is calculated and disbursed to the salary earner’s account after all other FirstBank loan obligations have been deducted. This means that the deductions are done upfront. This loan product can be obtained from the various FirstBank banking channels: FirstMobile and USSD.
Before we proceed to how to get the FirstAdvance loan, let us quickly discuss how to become eligible for this product, and the features of this loan product. This will make you have a better understanding of the loan, and ultimately make you decide whether you want to go for it, (or not).
Eligibility Conditions
- Having a salary account with FirstBank.
- Must be a working person (employed), and show evidence of payment received in the last six months.
- Your salary account must be domiciled with FirstBank.
Features of a FirstAdvance Loan
- The FirstAdvance has a tenor of 30 days. What this means is that your received loan period lasts for a maximum of 30 days before you are expected to pay it back.
- A management flat fee of 1% will be deducted as soon as the funds are disbursed into your account.
- An interest rate of 2.5% will be deducted upon disbursement.
- Automatic deduction of repayment from your account: this means when your loan is due for repayment, you do not need to take any action, as the loan will be deducted from your account when your salary comes in.
- The FirstAdvance loan is an enhanced and modern version of Digital SODA.
- The loan can be accessed 3 times a day, based on the maximum amount you are eligible for.
- The Risk Acceptance Criteria for the FirstAdvance is automatic.
- All fees will be deducted immediately after disbursement, including interest.
- The maximum amount you can access on FirstAdvance is N500,000.
We will highlight how to obtain the FirstAdvance loan using two methods:
- The USSD method (also known as QuickBanking)
- The mobile app method
USSD Method
To use this method, you must have enrolled for the FirstBank mobile banking prior to now. If you haven’t, please do so before you use this method.
- Dial *894# on your phone number linked with your FirstBank account.
- Select option 3 (Get Loans).
- The next options will show a list of amounts you are eligible for.
- Input the amount you want and send.
- Next, the management fee, interest rate, and insurance will be shown to you.
- Continue by entering your 5 digits transaction PIN.
- You will get the loan disbursed into your salary account in a short while.
- You will be debited for the management fee, interest rate, insurance, and VAT immediately.
- Once it’s 30 days after obtaining the loan, or upon receiving your salary, you will be debited of the loan repayment.
The Mobile App Method
The mobile app is very convenient to use. Unlike the USSD code, which may attract charges here and there, the mobile app is, to a large extent, charge-free.
- Download the FirstMobile app from your app store.
- Login into the mobile app using your online banking details.
- Open the menu and select Loans from the options provided.
- SelectFirstAdvance. Then maximum eligible amount and charges will be displayed.
- Tap the Next button if you are satisfied with it, and then click on “Accept the Terms and Conditions”
- Then the app provides you with a box to input the amount of loan you want. Note that whatever amount you type in, it should not be more than the eligible amount shown to you earlier.
- Enter your transaction PIN to continue with your request. If your request is successful, your account will be credited in a question of minutes. In addition, all charges will be deducted immediately as highlighted in the features above.
The next on my list of the types of loans we will discuss and learn about is the student loan, also known as FirstEdu.
FirstEdu
The FirstEdu loan is a type of loan that is only available to school proprietors/proprietress of private schools. Therefore, if you own a school and you are looking to get a loan for the smooth running of your school, then you should consider the FirstEdu loan.
Eligibility Conditions
- You must own a private school (registered with a CAC number).
- The school must have an active account with First Bank for 6 months or 12 months with other banks.
- Your school population must be at least 100 students.
Now, let us have a look at the features of this type of loan.
Features of FirstEdu Loan
- Tenor is from 90 days to 12 months.
- Maximum loan amount is N20million.
- Schools with CAC registration number but without the approval of the Ministry of Education can access up to N2million for 90 days.
- Collateral is domiciling school fees with FirstBank.
How to Apply for the FirstEdu Loan
To apply for the FirstEdu loan, you have to visit any FirstBank branch with your school details. Meet the Customer Service representative and let them in on your intention. Provide whatever requirement is required of you and wait for it to be processed.
FirstBank Car Loan
As the name implies, this type of loan is for individuals who need a vehicle for the day-to-day running of their business.
Eligibility Conditions
- Application Letter.
- You must get the auto loan application form.
- Proforma Invoice from FirstBank-approved vendors.
- Steady salary payment slip for the last three months.
- Statement of Account.
- Letter of Total Emolument.
Features of FirstBank Automobile Loan
- Maximum loan amount of 15million.
- Maximum tenor (period for repayment) is 48 months (4 years).
- 20% equity contribution is required.
- The interest rate is 22%.
- Vehicles to be financed but be new and must be from FirstBank-approved vendors.
- The salary account must be domiciled with FirstBank.
How to Apply for the FirstBank Automobile Loan
To apply for this loan:
- Download the Auto Loan Application Form
- Fill out the form with your correct details. Crosscheck properly for errors.
- Submit it to any FirstBank branch and wait for processing.
FirstBank Personal Home Loan
Thinking about building or renovating your own house? The FirstBank Personal Home Loan is there for you.
Eligibility Conditions
- You must have a verified and steady flow income.
- Properties to be financed must be residential and not for commercial purposes.
- You must provide the last three-month payslip.
- Statement of Account.
- Valid title document.
- Letter of Irrevocable domiciliation of salary for the period of the facility.
- Confirmation of applicant’s employer on FBN-approved list.
To apply for this loan:
- Download the Home Loan Application Form.
- Fill out the form correctly and submit it at any FirstBank branch.
The last of my types of FirstBank loans is the FirstCredit.
FirstCredit
FirstCredit is a type of loan that is available for everyone and can be accessed anywhere without visiting the bank.
Eligibility Conditions
- The customer must have been in an account relationship with FirstBank for at least 6 months.
- Customers’ accounts must be linked with BVN.
- You must have correctly updated your phone numbers.
Features of the FirstCredit Loan
- No collateral needed
- No physical documents required
- No hidden charges
- Quick disbursal
- Easy and convenient
How to Apply
- Dial *894#
- Select Loans
- Select FirstCredit
- Select Get a New Loan
- Select the account number you want to get the loan on
- Accept the Terms and Condition
- You will get 4 loan amount options
- Choose your desired loan amount
- The loan will be disbursed into your account
We hope that, to a large extent, this article has helped you learn about the various FirstBank loans, the features, and how to apply for them. Do well to visit any First Bank branch for more information.
