First Bank of Nigeria Limited says it is set to support educational institutions to enhance preparations for a new school year.
The bank, in a statement, described its support for the educational development of the child and the institution as an offshoot of its focus on entrepreneurship.
It said it had bundled its educational product offerings into four major facilities: the FirstEdu loan, operational vehicle loan, commercial mortgage and personal loan against salary, which enhances parents/guardians’ capacity to pay their wards’ school fees.
According to the statement, the FirstEdu loan is targeted at private nursery, secondary and adavnce level schools.
The product offers opportunity for private schools to access flexible funding to meet urgent cash flow needs, replace old furniture and equipment, as well as refurbish dilapidated buildings and classroom blocks.
With this product, the bank said, school owners/proprietors could stay ahead of competition in providing educational services and support to their target population by maintaining acceptable standard infrastructure at all times.
It said, “This product allows the customer access up to N10m with no tangible collateral required apart from the domiciliation of school account with the bank. This reduces the cost of borrowing to the customer and eliminates the challenges posed by the provision of additional collateral.”
FirstBank said the OVL, which is targeted at registered businesses, would allow the entrepreneur to acquire brand new vehicles for the day-to-day operation of the business.
It said school proprietors could take advantage of the facility to purchase school buses and even upscale their staff welfare schemes through provision of staff buses.
“The organisation can access up to N10m, for a single transaction, with flexible repayment plan spread over 36 months. The minimum equity contribution is 30 per cent and the purchased vehicle doubles as collateral for the loan.”