Tutorial on How to Apply for Loan in First Bank of Nigeria
Tutorial on How to Apply for Loan in any Nigerian Bank. First Bank of Nigeria, sometimes referred to as FirstBank, is a Nigerian multinational bank and financial services company headquartered in Lagos. It is the biggest bank in Nigeria by total deposits and gross earnings.
You can agree with me when I say that most Small and Medium-sized Enterprises (SMEs) in Nigeria are having difficulties in starting and expanding their businesses due to lack of funds. And one of the major reasons that often kill great business ideas of most entrepreneurs in Nigeria is their inability to meet the requirements for obtaining loans from banks.
However, you can obtain bank loans as small as N50,000 and as big as N100,000,000 depending on your type of business. Banks generally offer the least interests funding for SMEs and the charge interest rates of 5-25% and more, for 1-5 years (short to long term loans).
First Bank of Nigeria
First Bank of Nigeria has made plans to provide non-collateral loans for Small and Medium Enterprises as part of the bank’s initiative to power growth in the SME sub-sector. The loans are offered to SMEs in different sectors of the economy; hence, there are no favorites.
The non-collateral loans offered by First Bank do not require collateral. The only thing you need to do is to go through a psychometric test, pass the test and provide the bank with your business plan and financial projections.
HOW TO APPLY:
1.First of all, You will have to write an application for the type of loan you want
application must include the purpose of the loan, amount of loan, tenure of the loan, source of loan repayment and collateral for the loan (if required).
- Also, The letter of application must be addressed to the branch manager of the branch of First Bank which the salary is domiciled and after it is written and signed, the customer presents it at the bank for further processes.
Also, When the bank receives the letter, the bank reviews the application, writes Credit Appraisal Memorandum (CAM) which highlights the customer‘s capacity, condition, character, collateral, and capital, generates the loan repayment schedule, prepares the offer letter which specifies the terms and conditions under which the loan will be granted.
You will then sign off on your offer letter and meet the conditions precedent to drawdown.
The conditions precedent to drawdown includes provision of post-dated cheques that cover the entire duration of the tenure of the loan, presentation of a reputable guarantor, execution of guarantor‘s form and statement of personal net worth form by the guarantor, provision of proforma invoice (for automobile loan), equity contribution (for automobile loan, personal home loan and joint mortgage), presentation of statement of account and execution of statement of personal net worth form by the customer.
- Finally, Once you have met all the conditions precedent to drawdown, all the documents will be sent to First Bank’s compliance department, then the department will approve and book the loan.