There is a FirstEdu loan accessible to private school owners who need additional finances to ensure the proper operation of their educational establishments.
Content Recap:
Loan Features
- Available to all CAC-registered private schools (either Government approved or not).
- The duration of a tenor ranges from 90 days to a year (terms and conditions apply).
- N20m is the maximum loan amount.
- Schools that are registered with CAC but do not have Ministry of Education clearance can borrow up to N2 million for 90 days each.
- Funding for the use of school cars (new and fairly used)
- Up to N20 million in 24 months of asset acquisitions.
- FirstBank has agreed to act as collateral for the payment of the student’s tuition.
- A bank account must have been maintained by the school for at least a year.
- A school must have at least 100 students.
Benefits
- An easy way to get the money you need for your business’s operating capital.
Documents Required
- Proof that the school has been approved by the government.
- Where appropriate, the school’s Memorandum and Articles of Association (MEMART).
- There are records to illustrate how long the school has been in operation.
- Records indicating the total number of students enrolled at the institution.
- The bank may demand further paperwork.
Who Can Apply
- Without Ministry of Education clearance, schools that have CAC registration can borrow up to N2 million for 90 days.
- A’ level Tuition Providers who are registered with both the State Ministry of Education and the Corporate Affairs Commission are permitted to operate.
How to Apply
- For those interested in applying for a FirstEd Loan,
LSETF
Brief Description
Only schools and relevant educational institutions (ME and SME categories only) with a minimum student population of 100 are eligible for this 5B intervention fund (one hundred).
Interest Rate
The fixed interest rate is at 9% per annum (all-inclusive).
Loan Tenure
Twelve (12) months for loans of less than or equal to N1,000,000.00.
N1 million and above loans have a grace period of 24 months.
Loan Amount
Maximum of N5 million.
Eligibility Requirements
- Must be a Lagos State resident to apply
- Registration with the CAC is required, as is at least one year of operation at the school or training institute in question.
- Have a minimum of 100 pupils enrolled for the entire year.
- Must have two (2) well-off guarantors who can back up the loan.
- a good credit history
- Documentation of Tax Obligation and Payment
Required Documents
- Application form
- CAC Documents
- 6 months bank statement
- LASRRA ID (Lagos State Residency Registration) of the borrower
- Evidence of Tax payment
- Bank Verification Number (BVN)
- One (1) Guarantor who must have verifiable LASRRA registration – (Below N500,000)
- Two (2) Guarantors who must have verifiable LASRRA registration – (Above N500,000)