FirstEdu Loan: First Bank launches products to help registered, unregistered schools

FirstBank of Nigeria Limited has launched a system aimed at supporting schools with educational products to boost the sector.
The bank also has products for parents and guardians to meet the children’s needs.
The products and solutions include the FirstEdu Loan, Operational Vehicle Loan, Term Loans, Personal Loan Against Salary (PLAS) and FirstAdvance for parents/guardians to pay their wards’ fees.
The FirstEdu loan offers short-term finance to private pre-primary, primary and secondary schools/A level educational institutions.
The product offers opportunity for private schools to access flexible funding to meet the cash flows, replace old furniture and equipment or assets, buy fairly-used school buses, as well as refurbish dilapidated buildings and classroom blocks.
The product helps school owners/proprietors to bridge the no-income gap between terms.
Schools without tangible collateral can get up to N20million but their fees account must domiciled with the bank.
Also, schools that are yet to be registered can access up to N2million without collateral.
To cushion the effect of COVID-19 pandemic, the bank, with the Lagos State Employment Trust Fund (LSETF) are set to finance low-cost private schools at a single digit interest rate.
The bank is also in partnership with the National Association of Proprietors of Private Schools (NAPPS) to finance member schools at a highly competitive rate.
The Nation gathered that this reduces the cost of borrowing to the customer and eliminates the challenges posed by the provision of additional demanding collaterals.

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