With the new change of government in Nigeria, it’s no surprise that the Nigeria economic system has been experiencing some changes. Some of these changes is the newly introduced ₦500,000 government loan for students in Nigeria. Every Nigerian student whether undergraduate or postgraduate is entitled to this loan disbursement.
Unfortunately the cost of education in Nigeria has been rising at a fast pace over the years, this is bad news for students who are sponsoring themselves or students whose parents are struggling to send them to school.
However the Federal Government of Nigeria has introduced a ₦500,000 naira student loan scheme to help eligible students finance their education. How can you be eligible and how will you apply? Don’t worry we will enlighten you more about it in this content.
You are only entitled to borrow up to ₦500,000 naira. Which will be due in 10 years, you will also be required to pay an interest rate of 5% per annum. Since the loan will be due in 10 years, every student is required to find a job so as to be able to repay the loan before the due date.
However before you can be eligible for the loan, you will need to meet up with some certain criteria. In case you aren’t aware of these requirements, then the next section is for you.
Requirements To Be Eligible For The ₦500,000 Government Loan For Students In Nigeria
Before you can be eligible for these student loans, you need to meet some certain criteria. Some of the criteria required to be eligible includes:
1. Admission Into Accredited Institutions:
Before you can be eligible for this loan, you must have secured an admission to any Nigerian accredited universities, polytechnics, colleges of education, and also some vocational schools recognized by the Nigeria state government.
2. ₦500,000 Income Limit
The Loan candidates or sponsor income must not exceed ₦500,000. If exceeded, your loan eligibility will be withdrawn.
3. Provision Of At Least Two Guarantors:
The loan applicant will be required to provide at least two guarantors. However the guarantors to be provided alone need to meet up with some certain criteria. Check the next paragraph for more information.
The guarantors must either be a Civil Servants Of at least level 12 and still in service, or a Lawyer with a Post call of at least 10 years experience or a Judicial officers, or Justices of the peace. If your profession does not fall in line with the above mentioned guarantors, you won’t be eligible for the loan.
4. No Previous Loan Default:
Another factor that can disqualify applicants is if they have any previous loan that they haven’t cleared. If you are discovered to be owning a previous loan agency or apps, you won’t be eligible to take the Nigeria students loan.
5. No Examination Malpractice Record:
You must not have a previous examination malpractice case. If you are found guilty of any form of examination malpractice, you will automatically be disqualified.
6. No Record of Conviction Of Bad Act (Fraud, Theft, Dishonesty, Kidnapping e.t.c)
Before you will be awarded the loan, the federal government will investigate you to confirm whether you have been convicted in the past or not. If you have any records of Conviction, then you are not eligible.
Now that you have known what the requirements terms are, I will like to proceed to the next segment of this content which entails the step to which you can apply for the students loan.
How To Apply For Federal Government Student Loan In Nigeria
To apply for the students loan, you need to submit some documents and fill some forms. Below are the steps to take if you wish to apply for the Nigerian ₦500,000 students loan grants.
- School Admission Letter
- A completed application form
- A copy of their academic transcripts
- A copy of their national identity card
- A copy of their parents’ or guardians’ income statement
- A letter of financial need
- Two passport photographs from each guarantor.
- Letter from the guarantors addressed to the Chairman of the Committee, recommending the student for the loan.
- A cover letter signed by the vice-chancellor, rector, or the head of the institution.
After you have successfully aquaired all these documents, proceed with the process by submitting it to the bank to the Chairman of the Committee.
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The Nigeria Student Loan disbursement has proved to be of great help to students who can’t afford to pay their tuition fees. With this loan, you will be able to cater for your financial needs and your tuition fees won’t be an obstacle to your educational career.