Education loan is a loan designed strictly for the payment of children’s school (Primary and Secondary) related expenses in Nigeria only. Education loan is aimed at protecting the cash flow of clients' businesses. This loan can be accessed by a client who is a member of a group (Union).
Education Finance Loan is categorised under two main product offerings.
School Fees-Designed for economically active parents/guardians who have the willingness to educate their children in private schools. This product is tailored to close the gap between the need of the child and what the parent can offer in regard to school fees/levies,uniforms,books and school bus fees.
Loan period-Can be disbursed all year round
Interest rate-4% Reducing Balance(48% per Annum)
Grace period-1 Month moratorium(Approximately 30 days after disbursement)
Loan purpose: To cover Tution fees,uniforms,Books& Transportation(School Bus).
School Improvement Loans-Designed for school proprietors(low-medium income private schools Nursery-Secondary),to improve their schools in terms of Increased learners enrolment& quality education. The loan is structured around classification of school needs such as working capital, buildings improvement/renovation and procurement of fixed assests than enhance learning.
Loan period-3-18 months
Interest rate- 4% Reducing Balance (48% per Annum Reducing Balance)
Repayment Mode-Termly-Repayment shall be according to school cash-flow
Loan period-Loan can be disbursed all year round
Loan purpose-Building extension,working capital,extra classrooms,dormitories,wash facilities,sick bay,buying of IT equipments,purchase laboratory equipment& furniture,projectors,textbooks,school bus,blackboards e.t.c.
- Facility range: N15,000 (minimum) to N40,000 (maximum)
- Methodology: Group
- Duration: 8 months
- Grace period: 1 month
- No collateral
- Access to funds for the prompt payment of children’s school related expenses.
- Flexible repayment structure
- Low interest rate
- Loan application letter
- Duly completed application form
- 2 Guarantors
- A valid means of ID (national ID, driver’s license, voter's card or international passport)
- Current utility bill
- 4 recent passport-size photographs
1. Q: Can I take education loan to finance the school fees of a child schooling abroad?
A: No. Education loan is strictly for children schooling in Nigeria.
2. Q: Does education loan cover students in higher institutions?