loan application letter in nigeria

How to Write a Loan Application Letter in Nigeria

Do you find it difficult to write a loan application letter or you are clueless about how to go about the process?

No need to fret, you have come to the right page for a solution.

It is not surprising that a lot of Nigerians apply for loans in various financial organisations ranging from commercial banks, and microfinance banks, and that online loan apps are on the increase in Nigeria. 

Due to the current economic hardship coupled with debts incurred by some Nigerians, to settle their debts, they simply look forward to applying for a loan as a solution to their problems.

Nigerians apply for loans for different reasons and purposes. Some for their businesses, education, to pay off debt while some apply for loans to “japa”.

If you’re looking to apply for a loan here in Nigeria, in simple steps, I’ll guide and put you through how to write a loan application letter in Nigeria. 

Table of Contents

Applying For a Loan in Nigeria

Firstly, you need to have a plan, ask yourself the question “what do I need this money for?”

Will the business you’re planning to venture into be productive enough to pay back the loan you’re applying for in the bank?

If you don’t have a plan, at the end of the day, when you write the application for a loan, you often find it difficult to pay back the loan.

This is why some of these loan sharks make public the loan defaulters personal details on social media platforms creating public embarrassment to the defaulters and the people close to them.

Steps in Applying for a Loan  

The major thing you should look out for as you’re about to apply for a loan in Nigeria is the financial institution you want to go for.

Put in mind their interest rates, the loan duration (how long will it take for you to pay off?). 

Read properly the T&Cs, and read it line by line before you append your signature. 

Lots of Nigerians applying for loans make the mistake of not going through the terms and conditions thoroughly, you definitely don’t want to make this mistake to avoid “had I known?”

Don’t be too eager, I repeat, don’t be too eager.

Just recently someone told me something I want you to pick from, she said “one of the policies in giving loans is not to give a loan to a customer that is too eager, the one who never lets you rest”.

Read also: How to get loans without a salary account or collateral.

How to Write a Loan Application Letter

Writing a loan application letter in Nigeria is quite simple as you can refer to the letters you wrote while in school. 

Your loan application letter should be well detailed and concise, not verbose.

There are two things to consider here, are you applying for personal use or for your company?

If it is a personal loan, it is simple, all you have to do is to walk into any bank of your choice to make some findings.

Make sure you get a clean sheet of paper (A4 Paper), your identity card (work id is included), a letter of introduction from your working place if you’re an employee of an organisation.

I’ll list out in bullet points what should be included in your loan application letter so you won’t make any mistakes or leave any information out of your loan application letter.

NOTE: You’re writing a formal letter, not an informal letter.

• The bank’s address (include the branch manager if you’re addressing the letter to him/her. This should be on the left side of your A4 paper.
• Your address should be on the right side of your letter.
• Under the address to the bank, “Dear Ma/Sir” should be written.
• Heading: You should provide heading to your loan application letter. See more details in the samples below.
• Body of your letter: You should explain in detail the reason and the duration.

Read also: Top banks in Nigeria for entrepreneurs. 

Samples of a Loan Application Letter

Below are samples of loan application letters for an individual/personal use:

To the Branch Manager,

United Bank for Africa,

Lebanon Dugbe,

23rd April 2009.

40,  Boladuro Street,

Challenge Ibadan,

Dear Ma/Sir,

               LOAN REQUEST

  I (your name), with the account number (×××××××××) wish to request for a loan in your business office. 

    I look forward to hearing from you soon.

Thanks in advance.

Yours faithfully,

(Signature)

(Phone number).

Applying for a loan in the name of your company? Ensure you have a great turnover with the bank to get a good loan.

The letter for loan application should be on your company’s letterhead. You can’t apply for a loan in Nigeria as a company on a plain sheet of paper. 

        XYZ CONSULTING FIRM LTD.

            +234***********, 40 Boladuro Street Challenge Ibadan. Oyo State.

 To the Branch Manager,

No 40 Boladuro Street,

    Dear Sir/Ma, 

  Our company (name), with the account number (×××××××××) wishes to request for a loan in your business office to get some equipment for our business.

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Applying For a Loan on Your Mobile Phone

Do you know you can pick up your phone and apply for that loan you’ve been searching for? 

Simply visit the Play Store/Apple store app, there are lots of applications offering loan services. 

From Okash to New Credit, Fairmoney, 9ja Cash, Soko Loan and a host of others. 

It is not surprising that some Nigerians prefer to apply for a loan using these mobile applications than walking into the bank.

Everyone wants comfort and a very easy experience. 

Once you download the application of your choice, you click on the register button (all your information would be recorded together with your bank verification number).

While some Nigerians don’t like to apply for a loan from these Loan apps, due to the embarrassment/disgrace they put people  through if they fail to make payment after the payback day, some apply for the loan and pay back in due time. 

Read also: Top 10 best loan apps in Nigeria. 

  Conclusion

 I hope you’ve learnt a thing or two from this article on how to write a loan application letter in Nigeria. 

Whenever you’re in a fix or there’s something really urgent you need money to settle, you can simply visit any bank branch to make enquiries on the type of loan product they have to offer, or make use of online apps.

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Give her books and you've made her day. Ajani Angela is a graduate of History and International Studies from Bowen University, currently pursuing her Masters Degree in Peace and Conflict Studies at the University of Ibadan. Angela loves to read and meet new people. Her interests are not limited to just education; she also loves to offer advice to people going through a lot. Angela loves to hear from readers. You can email her at [email protected] .

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How to Write a Loan Application Letter: a Complete Guide

Have you been having challenges with how to write a loan application letter? If yes, then this article is for you. Nothing is as frustrating and depressing as finding a company or body ready to give you a loan but requires you to submit a loan application letter. Then you can’t write a convincing application letter.

Many people have had potential loans slip through their hands because they submitted an unconvincing letter. If you have had such a problem in the past, I’ve got good news for you. I have put up a guide on writing a detailed, convincing loan application letter that will help you get a loan to support your business or solve your problem. I have also written a sample that you can use as a guide. Without any further ado, let’s get started!

Table of Contents

When Should You Write A Loan Application Letter?

Two primary situations may necessitate the writing of a loan application letter. The first situation is needing a loan from a traditional bank lender. These financial institutions do not grant loans but make them available to the public. To prove their creditworthiness, applicants must typically submit a loan application to traditional banks.

The second situation that may require a loan application letter is when you are applying for an SBA-guaranteed loan. This type of loan involves the federal government, and applicants must undergo additional screening before being approved for funding. Submitting a formal loan application with supporting documentation can improve an applicant’s chances of receiving an SBA guarantee.

A well-written loan application letter can significantly affect the approval process in both situations. The letter should be personalized and provide all the details supporting your case for receiving a loan.

The letter must include your name, contact information, and an explanation of why you are seeking a loan. Additionally, you should provide details on how to use the loan funds and how to repay the loan.

Your loan application letter should be written formally and professionally, with proper grammar and formatting. It should also include supporting documentation, such as a business plan, financial statements, and tax returns. These documents will help substantiate your application and provide additional information lenders may require to make an informed decision.

It is essential to take the time to prepare a thorough and professional loan application letter that accurately reflects your financial situation and your ability to repay the loan.

What Your Loan Application Should Contain

Various elements must be found in your loan application letter; with these key elements, your loan application will be complete.

Personal Information: The first section of the loan application letter should contain personal information about the borrower. This information should include the borrower’s name, phone number, and email address. It is important to provide accurate information to ensure the lender can contact the borrower if necessary.

Loan Information: The next section of the loan application letter should provide details about the requested loan. This information should include the loan amount, the purpose of the loan, and the repayment terms. It is important to be specific about the loan amount and the repayment terms to ensure everything is clear.

Employment and Income Information: The lender will want to know about the borrower’s employment and income to determine if they can repay the loan. The borrower should provide information about their current employment status, including their job title, length of employment, and monthly income. If the borrower is self-employed, they should provide details about their business and income.

Credit History: The lender will also want to know about the borrower’s credit history. The borrower should provide information about past loans or credit accounts, including their current status and repayment history. They should also provide information about any bankruptcies or foreclosures.

Collateral: If the borrower is applying for a secured loan, they should provide information about the collateral they offer. This information should include a description of the collateral and its value.

Loan Purpose: The borrower should explain the purpose of the loan in detail. This could include paying off debt, making home improvements, or purchasing a vehicle. It is important to be specific about the loan’s purpose to help the lender understand how the loan will be used.

Repayment Plan: The borrower should provide a detailed repayment plan outlining how to repay the loan. This plan should include the repayment schedule, the amount of each payment, and the payment method. It is important to be realistic about the repayment plan to ensure the borrower can afford the payments.

Conclusion: The loan application letter should conclude with a summary of the borrower’s financial situation and why they are a good candidate for the loan. The borrower should thank the lender for considering their loan application and provide their contact information for follow-up.

Tips for Writing an Effective Loan Application Letter

• Be clear and concise in your writing.
• Provide accurate and detailed information.
• Use proper grammar and spelling.
• Be honest about your financial situation.
• Make sure your repayment plan is realistic.
• Include any relevant documents, such as pay stubs or tax returns.

Example of a Loan Application

[Your Name]

[Your Address]

[City, State ZIP Code]

[Your Phone Number]

[Your Email Address]

Dear [Lender’s Name],

I am writing to apply for a loan in the amount of [Loan Amount] to [Purpose of Loan]. I have researched various lenders and have determined that your lending institution offers the best terms for my needs.

I have been employed as an [Occupation] at [Company] for [Years of Employment] years and have a stable income of [Monthly Income]. My credit score is [Credit Score], and I have no outstanding debts or obligations. I am confident I can repay this loan in full and on time.

The funds from this loan will be used for [Purpose of Loan], which is important to me for [Reason for Purpose of Loan]. I have attached a detailed budget plan outlining how I intend to use the funds and how I plan to repay the loan.

I would appreciate your consideration of my loan application. Please let me know if you require additional information or documentation through this contact [phone number] or [email address]. I am available to discuss my application at your convenience.

As part of my loan application, I have included the following documents for your review:

• Business plan
• Financial statements for the past three years
• Articles of incorporation
• Personal financial statements for all owners
• Tax returns for the past three years
• Cash flow projections
• A list of collateral that will be used to secure the loan.

Thank you for your time and consideration.

Frequently Asked Questions

What is the most important factor in getting a loan.

The most important factor in getting a loan is your Debt-to-Income Ratio.

What is The Best Reason to Put When Asking for a Loan

You can use emergency expenses like medical emergencies, job loss, car repair, the death of a family member, etc., as reasons for requesting a loan.

Should I Attach Any Supporting Documents with My Loan Application Letter?

Yes. Attaching any supporting documents you have is very important, as they will help increase your chances of getting a loan.

Final Wrap Up

A loan application letter is an important part of the loan application process. Providing accurate and detailed information about your financial situation and the requested loan is essential. Following the tips outlined in this article, you can write an effective loan application letter that increases your chances of getting approved for a loan.

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5 Best Format Examples of Loan Application Letter in Nigeria 2023 Code

Loan Application Letter in Nigeria – Do you wish to apply for a Loan in Nigeria? Whether it’s a business Loan or a personal loan, knowing how to properly write loan application letter can help you obtain the loan you are currently looking for. Do you know the right format in writing a loan application in Nigeria? If no, then continue reading this post to see the best loan format for all types of loan in Nigeria. Information Guide Nigeria

A well written application letter can be just what you need to land that loan you’ve been waiting for. Most business owners often apply for a business loan to maybe expand their business enterpr i se, or to cover for a new business idea they wish to venture into. However, getting the loan isn’t as easy as it may seem sometimes. Although, there are several financial institutions that offers loans to business owners, but they usually require you to write an application letter before getting the loan. That’s why you need to learn the proper format in writing a loan application.

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What is a Loan Application Letter?

A loan application letter is formally written application letter to a your employer, financial institution, or company to express your intention of acquiring a business or personal loan from them.

The loan application letter highlights your personal achievements, skills, and life as an individual. It helps you to gain the attention of the employer or the financial institution responsible for reviewing the loan applications.

For your loan appl i cation to be approved, it must be interesting enough to the manager, and it must highlight your key qualifications that makes you fit for the type of loan you’re requesting for.

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How to Write a Loan Application Letter

To write a good loan application letter, follow the key points below:

1.    Address the Letter to the Right Authority

One of the important key note of writing a loan application letter is addressing it to the authority. If your loan application letter is addressed to the wrong authority, then your loan application will not be processed. Always conf i rm the right authority to which you are expected to address the loan application before addressing your letter. For example: HR, Your Manager, or Loan Officer.

2.    State Your Reasons For Requesting the Loan

When applying for a loan, whether for business use or personal use, it is important that you explain in details how the money will be spent. When you apply for a loan with vague explanation of how the money is to be spent, then your loan application may not be approved. The lender needs to know why you need the money in other to determine if it is reasonable or not.

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3.    Be Specific About the Amount you want

Always be specific about the amount you’re requesting for when applying for a loan. It is believed that if your reason for requesting a loan is legitimate, then you should know the exact amount of loan you need to solve your problem. Also, this will help the lender know if you have the borrowing capacity for the amount you’re requesting for.

4.    Present Your Positive Attributes

When applying for a loan, make sure you describe all your good attributes in the application letter to show the lender that you are trustworthy. Describe your positive work history, and what you can offer to guarantee that the loan will be paid on time.

5.    Describe How You Intend to Pay the Loan

This a an important part of the loan application letter. Make you depict your intention of repaying the loan if granted to you. This will let the lender know that you are indeed worthy of the loan you are requesting for.

6.    Make Sure the Information You Provided are Correct and be Honest

Money lending is a sensitive issue, that’s why money lenders only loan money to people who are honest and factual about the situation. Also, it is important that you keep a good credit history, to enjoy smooth loan application.

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Loan Application Letter (5 Best Format)

The loan application letter is divided into six paragraphs, with each paragraph addressing a major topic like the loan amount, descr i ption of your business, purpose of loan, target market, repayment plan, etc. See the best loan application letter format below:

Business Loan Application Letter Format

Let’s take a look at how to write a business loan. Taking a case study of a businessman who owns a furniture business and is requesting for a loan amount of N30 million to expand his business.

Mr. Victor Nnaji

Chief Executive Officer

Nnaji’s Furniture Homes

Mr Johnson Michael JAMB Result

The manager

Administration Department

XYZ Co. Ltd.

Application for Loan to Expand My Business

Dear Mr Johnson,

I am requesting a business loan of N30 million to help me expand my furniture business most especially my warehouse facilities. In the last 2 years, my business have experienced a major boost in sales and income which has made me see reasons to opt for an expansion.

I have accumulated a huge experience in the furniture business industry and I could be considered an expert and also a top marketer in this industry. JAMB Form

I started the Nnaji’s Furniture Homes in 1992 and since then, the company has consistent profit till date. Although there have been some ups and downs in the business, which is normal with all businesses, but the company has thrived greatly under my leadership.

The market for Furniture business depends on the housing market of the economy and we have lots of clients who have been satisfied with our products and have given good reviews about our products.

In recent years, the housing market has improved greatly and the projected growth in the next 10 years exceeds the numbers prior to recession. So at Nnaji’s furniture, we are doing our very best to ensure we meet up with the growing demand for furniture as well as the keeping up to date with the latest designs coming up, so we can always be ahead in the market.

I utilized cost-effective marketing strategies that resulted in an average of 4000 new orders every month from numerous private homeowners across the nation.

So far, I have invested about N20 million into the business, and my collateral consist of business assets with a fair market value of N45 million, while my personal assets is valued at N25 million. Npower Recruitment

I am disclosing my business plan which shows in details the reasons for the loan request. You can contact me on +2341647745362 if there are any questions you wish to ask.

Kind Regards,

Chief Executive Officer 5 Best Format Examples of Loan Application Letter in Nigeria

Nnaji’s Furniture Homes.

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Personal Loan Application Letter Format

If your loan application is for personal use, then use the format below. The case study here is customer service officer who is applying for loan to pay his children’s school fees.

Brian Dennis.

Customer Service Officer

Administration Team WAEC Result

Mr Bruce Banner

BCV Co. Ltd.

Application for Loan to Pay Up Children’s School Fees

Dear Mr Bruce, How to Check MTN Bonus Balance

I am humbly request for a personal loan of N200,000 to enable me pay my children’s school fees. I was supposed to have paid the fees before now but due to some unplanned events came up, and was quite urgent, I couldn’t pay the fees.

This unplanned event led to the reduction of the money set aside for my children’s school fees and I was hoping to get a loan from you to enable me paid up their fees.

It is no news that I have been with the company for over five years now and I throughout my time a the company, I have shown utmost loyal and dedicated to the organization and so I believe you could consider my request for the loan and deem me worthy of getting the loan.

You can use your discretion to determine or suggest a repayment plan for me as an employee of this organization.

Thanks in anticipation as I hope to hear from you soon.

Kind regards,

Brian Dennis. How to Connect NIN to Glo SIM

Administration Team

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Best 8 Format for Loan Application Letter in Nigeria

A loan application letter in Nigeria stands out when you attach an application letter outlining your interest in the organization as well as your qualifications, experience, and talents.

The letter also should demonstrates to the lender why you are the best candidate for the loan.

If you looking for the best format for your loan application letter as well as what to include, then you have found a perfect guide.

Let’s show you how to write the best loan application letter in Nigeria

What is a Loan Application Letter

This is a detailed letter explaining your aims and the reasons behind your loan request addressed to a possible employer or a company.

The loan application letter presents you as a unique personality, showcasing your accomplishments and abilities in an effort to catch the hiring manager’s or application reviewer’s eye.

This letter should grab the manager’s interest enough to prompt him to ask for an interview with you by highlighting your essential credentials for the loan.

The loan application letter, can make or break your chances of getting a loan. A compelling credit application letter ought to just be one page long and contain six or less passages.

What to Include in Your Loan Application Letter For Business

The letter should persuade the financial lender to approve your loan application by emphasizing critical details about your company’s financial history and current state.

You must be careful with how you structure your loan application letter, what you include in it, and the tone you use throughout because banks use the loan application letter to percieve borrowers and their creditworthiness.

Salutation and Heading

A header and greeting section are essential components of a strong loan application letter. The header of the letter will include the applicant’s name,

address, and phone number, the date, the recipient’s name, address, and phone number, as well as a formal salutation addressed to the recipient.

The information you should include in this section is your name, the name of your company, your business address, your business mobile phone number, the receiver’s name, title, and contact information,

including their physical addresses, as well as a clear subject line that states the purpose of the letter and the precise amount of money you are asking the potential lender for.

Acknowledge The Right Authority

Any correspondence must be addressed to the appropriate person. It is highly important since it marks the beginning of a formal engagement,

and you want this to get off on the proper approach. Always try to determine to whom the application must be filed and be sure to address it.

You can use a more general salutation, such as Dear Loan officer, Manager, etc. if you are unable to identify the loaning officer’s or agent’s name.

Give a Brief Summary

Briefly state the aim of the letter and the amount you are requesting from the potential lender at the start of the loan application letter.

Additionally, you should briefly describe your firm, how the money will be used, and your creditworthiness in this part.

When composing this part, think about excluding everything except the most important information to direct the reader to the letter’s body.

Include Your Business Details

Give the crucial information about your firm in the first body paragraph of your loan application letter. The specific business structure (such as a sole proprietorship, partnership, limited liability company, etc.)

of your company, its legal name, how long it has been in operation, the number of employees it has at present, if any, as well as its annual revenue and profit, are all things you should include in this section.

State The Purpose of The Loan

Describe the loan’s purpose and intended use in the second body paragraph of your letter of loan application.

You must be as explicit as you can in this section and use numbers to describe your objectives.

Avoid making any ambiguous comments, though, as this might give the lender cause for concern and cause them to reject your loan application.

State The Exact Amount

A particular sum must be stated when you have a valid justification for the loan request because this will help the lender determine whether you have the borrowing capacity.

If your earnings are high enough to cover the cost of returning the borrowed funds, that is. It also indicates whether the amount borrowed is appropriate for the purpose for which it was borrowed.

State the Means of Repayment

This expresses your desire to refund the money. Because it provides a complete picture of the loan cycle, this is important.

Be truthful and accurate when giving out information: Because lending money is risky in itself, maintaining a strong credit history depends heavily on you being truthful and accurate about the circumstance.

A strong loan application letter conclusion should include a paragraph referencing the financial statements of your company that are attached,

a few sentences encouraging the reader to review the loan application materials and expressing your eagerness to meet with them,

your signature and printed name, and a list of enclosures.

Sample Letter

[Applicant’s Name] [Applicant’s Title] [Business Name] [Physical Address] [City, State, Zip Code]

[Loan Officer/Agent/Lender’s Name] [Official Title] [Financial Institution’s Name] [Physical Address] [City, State, Zipcode]

REF: Small Business Loan Request for [Dollar Amount]

To Mr/Mrs [Receiver’s Surname],

I am writing this loan request  letter to ask for a small business loan amounting to [specify the loan amount you wish to borrow] for the purpose (s) of [provide a practical purpose for the loan, e.g., expanding the business, marketing your business to a target audience, recruiting new staff, etc.]

My business, [mention the company name and specify the business structure], became operational in the year[write the year] with [Mention the number of employees at the time of inception] and one location. Over the last 12 years, we have consistently grown, and we now have [Total number of branches] located in [Mention the various branch locations], and we currently have [write your current number of employees].

My business solely specializes in the [Mention the industry type, e.g., food-service, motor vehicle spare parts, building, and renovation industry, etc.]. We advertise on our official website, [provide your business’s website link] and market our products/services on various social media channels such as [Mention the social media pages, e.g., Twitter, Instagram, Facebook, etc.]. So you can visit those sites to follow our business journey and success stories.

In the previous business financial year, our annual sales revenue amounted to [provide the factual figure in dollar amount], and the business generated a net profit of [write profit in dollar amount or percentages].  These figures prove that we have consistently maintained our cash flow for the past [write the number of years] and have managed to generate profits each year we have been operational.

To promote our continued growth, we have strategized a business expansion plan to reach our target market in remote areas. The loan we are requesting will help us meet our business expansion goals. In addition, we anticipate increasing our total revenue by [quantify in figures or percentages] within the first quarter of opening, which will contribute to our loan repayments.

We want to pursue this endeavor in (mention the anticipated project start dates], and we hope you consider financing our business expansion goals. I have also attached our business plan, the most recent financial statements, including our income statement, business balance sheet, and business credit reports, for your review.

I appreciate you for taking the time to review this loan application letter along with the enclosed financial documents. I look forward to hearing from you at your convenience.

Sincerely, [Loan applicant’s name]

[Loan applicant’s signature]

[Loan applicant’s business title]. [List the enclosures provided]

Format for Loan Request letter to Employer

• Address to the right authority
• State Your Reason for the loan
• State the specific amount
• Mention your positive Attributes in the company
• Mention how you intend to pay back

Peter Walters

The Manager

Administration Department

Sub: Application for Loan to purchase a New Bicycle.

Dear Mr. Walters ,

I would like to request you if you could please grant me a loan of $800 as a personal loan as I need to purchase a New Bicycle. Also, I am in need of a new Bicycle as my old one is broken beyond repair and this is the mode of transport to commute to work.

I do not have that amount of money in hand at the moment, hence, I was hoping if you could help me by lending me the money.

As you are aware that I have been with the company for the past 3 years and have proven me to be a loyal and dedicated employee under your kind leadership, hence I believe you would consider me worthy of the loan.

As per the company’s employee loan policy, you can suggest a repayment plan for me as per your discretion to be deducted from my salary.

Thanking you in advance and hoping to hear from you soon.

Kind regards,

Candy Silver

Customer Service Officer

Administration Team

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Now it’s Your Turn

You can use the above listed formats to write the best loan application letter in Nigeria

Drop a comment now if this was helpful

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22+ Sample Loan Application Letters – PDF, DOC

There are times when we need financial aid to push through with our education, business ideas, or other personal projects or goals which require a huge amount of money for its realization. It is for this reason that lending companies have been existing ever since the days of old. Today, the primary step to being taken by someone who wants to borrow money from another individual or institution is to write a loan application letter .

Loan Application Letter

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The Loan Application Process

• Before the loan contract , the borrower would send a loan application cover letter to the prospective lender to express his or her intent to ask for a loan.
• Afterward, when the lender has decided to consider the application for a loan made by the borrower, the borrower, and the lender would convene to negotiate the terms of the loan.
• The payment method, whether personal, through a check, online banking, etc.
• The number of times the payment is going to be made. There are various options. For example, the loan can be paid at one time, or it can be done in yearly or monthly installments.
• The amount of interest to be added on top of the loaned amount. The interest is the amount of money that is charged by the lender to the borrower on top of the amount which he/she has loaned. You may also see job reference letters .
• The assets (land, buildings, vehicles, or other properties) of the borrower would serve as collateral damage in case the borrower fails to make his/her payment on the time it is due.

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Things To Remember in Writing a Loan Application Letter

• Observe the proper rules for writing formal letters.
• State your intent to borrow a specific amount of money.
• Explain in detail the reason for borrowing money. You must be offering a clear, honest, and transparent explanation as to how you intend to utilize the money you intend to borrow. You may also see free application rejection letters .
• Enumerate your assets and liabilities.
• State the time, date, manner, and method which you prefer to make your payment.

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5 Best Loan Application Letter Format In Nigeria

• by SAMUEL OKOSI
• May 27, 2022

5 Best Loan Application Letter Format In Nigeria-If you want to get a loan and you are looking for the format to use to write your loan application, then you have stopped at the right place as we are going to show you how to write a loan application letter so that your loan application will be accepted.

A loan application letter has a lot of important details about you that will show your creditworthiness which can either increase your chances of getting the loan or reduce it.

Your loan application letter can stand out if it is one that includes your interest in the company, stating your skills, experience and competencies and shows the lender why you are the ideal person to get the loan.

So without further delay, let’s show you how to write a good loan application letter.

What Is A Loan Application Letter?

This is a formal document that a borrower writes and submits to a prospective lender with the intent of getting a loan.

The letter explains the borrower’s request for loan, the amount of loan requested, the reason for the loan and also an explanation on why the lender should consider the applicant’s loan request. The letter also tells how the applicant intends to repay the loan.

Requesting for loan is not a bad thing especially when you are faced with some life challenges, personal and emergencies needs, expand your current business or take advantage of your current market opportunity.

Regardless of reason for wanting to get a loan, there are different lending options for you to choose from and you might spend more or less time and effort applying for a loan depending on which lending options you decide to pursue.

What You Should Know When Writing A Loan Application Letter

When writing a loan application letter, there are some points you should take note of and they are:

·     Address of the right authority

Your application letter should be addressed to the right person or party as it is very important when starting a conversation especially in a formal way. Always try to find out who the application letter is to be submitted to and address the letter to them.

So it could be to the Human Resource Manager or the loan officer.

·     Reason for the loan

Before you will be giving any loan or before your loan application will be approved, you must mention the reason you want to take the loan.

You should make sure your reason is to too vague and unnecessary as the lender wants to the see the urgency and great need for the loan as this plays a role in determining your creditworthiness.

The lender needs to know if the need is reasonable and if you are going to put the money to good use. ~Best Loan Application Letter Format In Nigeria~

Also, they would want to be sure that what you want to use the money for is legal as no lender would want to be associated with illegal activities.

·     Be specific with the amount you want

When you have a pressing need and reasonable reason to request for a loan, you will need to be specific with the amount you want to collect as this will help the lender know if you have the borrowing capacity.

This will help the lender know if your earnings will be sufficient to recover the repayment of the money borrowed.

·     Attributes about yourself that makes you trustworthy

Some lenders might require you to state your positive attributes as these play a role in determining your creditworthiness. You will need to talk about your positive work history and some good behaviour.

·     Mention how you intend to repay the loan

Here, you will have to show how you intend repaying the loan. This is very important as a lot of lenders will use this to determine if you are creditworthy.

You will have to provide the information and also be honest: lending money is a risk in itself and the opportunity cost of lending that money to you is the other thing the lender was supposed to use the money to do.

Ensure that you have a good credit history.

Loan Application Letter Format And Content

Generally, a loan application letter is not supposed to be too long as it should have about five to six paragraphs with each major topic discussed in a separate paragraph.

The contents include a description of your business, the amount you have invested in your business, the purpose of the loan, the loan amount requested and the target market and competition.

Try to find out the name of the person that handles business loans and address the letter to that person.

Loan Application Letter Sample

If you want to collect a business loan, you will have to be very “straight to the point”.

·      Business Loan Application Letter Sample

In this loan application letter sample we will be talking about here, the owner of a furniture business is requesting a loan in the amount of N20 million to expand his warehouse and some other parts of his business.

He includes information regarding the business success to help increase her chances of getting her loan application approved.

Dear Mr John,

I am requesting a business loan of about N20 million to help me expand my business most especially my warehouse facilities. In the last two years, my business has experienced a major boost which has made us see reasons for an expansion.

I have a huge experience in the furniture business and when it comes to the industry, I am considered an expert and also a top marketer.

I started the Charles Furniture Homes in 2000 and the company has earned profit consistently since its establishment till date although there have been some ups and downs which is normal with all businesses.

The market for this business depends on the housing market of the economy and we have has a lot of clients that give good reviews about our products.

In recent years, the housing market is improving greatly and the projected growth exceeds the numbers prior to recession. So we are doing our best to meet up with the growing demand for furniture as new design are coming up and we always want to be ahead in the market.

I utilized cost-effective marketing strategies that result in an average of 200 new orders every month from private homeowners.

So far, I have invested about N15 million of my own money and my collateral consist of business assets with a fair market value of N40 million  and personal assets valued at N25 million.

I am disclosing my business plan which shows in details the reasons for the loan request. You can contact me on 01 647 7453 if there are any questions.

Mr. Charles Mark

Chief Executive Officer

Charles Furniture Homes

Enclosure: Business Plan ~Best Loan Application Letter Format In Nigeria~

·      Personal Loan Application Letter Sample

Mr Emmanuel David

The manager

Administration Department

XYZ Co. Ltd.

Sub: Application for Loan to pay up children school fees.

Dear Mr David,

I am writing this to request if you could please grant me a personal loan of N100,000 to enable me pay up my children school fees. I was supposed to have paid up their fees before now but some other unplanned events came up and we had to meet them.

 This led to the reduction of the money for the fees and I was hoping I could get a loan from your to enable me paid up their fees.

It is no news that I have been with the company for over three years now and I have shown to be a loyal and dedicated employee to the organization and so I believe you could consider my request for the loan and grant we worthy of getting the loan.

You can use your discretion to determine and suggest a repayment plan for me as an employee of this organization.

Thanks in anticipation as I hope to hear from you soon.

Kind regards,

Michael Smith.

Customer Service Officer

Administration Team

Sample Plot Loan From a Company

Request For Loan From Company Sample

Personal Loan Application Letter Sample

For whichever type of loan you want to take, we have given you a format that you can use to write yours. if you really want your loan application to be approved, you will have to take your time to write a loan application letter that will capture the attention of the lender and make them see reasons they should grant your loan request. ~Best Loan Application Letter Format In Nigeria~

The format and samples are just guides on how to write a loan application letter. Using the format or sample doesn’t guarantee that you would be granted your loan request as lenders look at some other factors in order to determine your creditworthiness.

• loan application letter format

SAMUEL OKOSI

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Loan application letter to bank manager: how to write it?

There could be a situation in life when we need some financial help. Anyone can meet a reason to turn to the bank with loan application letter. In this post, we are going to tell you how to write it.

What is loan application letter to bank?

The list of possible reasons for requesting the loan is long, it can be a starting capital for your business, or a need in credit to buy a house, and so on. So, let’s try to figure out all the features of an application letter and how to write it.

Loan application letter helps the manager to make a decision about your request. Loan application letter could be written in the case when the applicant needs some monetary assistance that can be given in the form of a loan. One of the most popular reasons for asking for loan is the hypothec for property.

Interesting tips on how to end a cover letter

Such a letter is a request, that is why it should be written in right and polite tone. Here we have for you some tips and exemplars to write effective loan application letter to the bank.

READ ALSO: LAPO microfinance bank loan: how to get?

Let’s start with some tips:

• Such kind of letter is formal that is why one should choose phrases and words carefully
• All the words should be easy to understand
• The content should be straightforward and short

An important thing, before writing such a letter one should think about the amount to be, the term of repayment, and the rate of interests. There shouldn't be any doubts that you can repay the loan at proposed terms.

Loan application letter format

The letter is required to be short and to-the-point. Generally, such a letter has six paragraphs to discuss each major topic. The content always contains the requested amount, most likely a description of your business, and of course the purpose of the loan. You can call, or visit the official web page of the bank to know the name of the manager who handles loan questions. See also: SME loans in Nigeria.

Best advice and samples of how to write a resignation letter

Some letters can contain the date of complete repayment. It is also good to insert some positive information about you in the letter, to show that you are a trustworthy person. It can be for example past financial history of loans, information about employment, or business. You should be honest in providing all the information, because the bank manager may check it, any untruth would lead to rejection.

READ ALSO: How to Access Loan from the Bank of Industry in Nigeria?

If you are the owner of the business, there is a need to provide some documents to confirm that the loan would be used for legitimate purposes. One should explain how this loan can help his or her business.

Loan request letter to bank manager sample

Here we have the sample that will help you to write the loan application letter for bank:

• To (Branch Manager’s name, bank branch address)
• From (Your name and address)
• Dear Mr. /Ms (name of the manager or concerned person)
• There is my saving account in your bank (account number) for (quantity) years. I want to apply for (write the type of loan) for (write about your purpose).

How to write an informal letter like a pro (with samples)

• I want to know the details and required formalities to receive the loan from your bank. I'm ready to meet you at the earliest time. Thank you.
• Yours Sincerely (Your name)
• Date and signature

Remember that it is possible to send such a request in email format.

Business-purpose loans or personal loan requests letters have the same structure, business variation just requires to insert more information about you and your business. There is nothing difficult in writing such letters. The format is formal but it allows for some creative approach, the main rule is to be truthful. We wish you luck and beneficial loans to receive.

READ ALSO: How to get car loan in Nigeria.

DISCLAIMER : This article is intended for general informational purposes only and does not address individual circumstances. If a reader clicks on our advertising partner links within our platform, we may receive a referral fee. Our team will never mention an item as the best overall product unless they believe it is the best option. Compensation does not direct our research or editorial content and in most cases does not impact how our listing articles are written. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind.

How to write a letter of permission: step by step guide with tips

Source: Legit.ng

Adrianna Simwa (Lifestyle writer) Adrianna Simwa is a content writer at Legit.ng where she has worked since mid-2022. She has written for many periodicals on a variety of subjects, including news, celebrities, and lifestyle, for more than three years. She has worked for The Hoth, The Standard Group and Triple P Media. Adrianna graduated from Nairobi University with a Bachelor of Fine Arts (BFA) in 2020. In 2023, Simwa finished the AFP course on Digital Investigation Techniques. You can reach her through her email: [email protected]

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How to write a Loan Application Letter in Nigeria

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How to write a Loan Application Letter in Nigeria easy

Want to know How to write a Loan Application Letter in Nigeria this article would guide on it step by step.

• Ever dreamt of a new business venture but lacked the capital?
• Facing unexpected expenses and need a financial lifeline?

If you’re nodding your head, then a well-crafted loan application letter could be your key to unlocking the funds you need. But navigating the world of loan applications in Nigeria can feel like deciphering ancient hieroglyphics. Fear not, aspiring borrower! This comprehensive guide will equip you with the knowledge and tools to write a loan application letter that stands out from the crowd and increases your chances of securing approval.

Table of Contents

Crafting a Winning Application:

1. Understand Your Needs:

• Before diving in, take a step back and ask yourself: what  type of loan  do you need? Is it a personal loan, a business loan, or something else? Each type has its own specific requirements and considerations.
• Determine the loan amount : Research the average cost of achieving your goal and be realistic about what you can afford to repay.

2. Choose Your Lender Wisely:

• Research different banks, microfinance institutions, and other lending institutions in Nigeria. Compare interest rates, terms, and eligibility criteria to find the best fit for your needs and financial situation.

3. Structure Your Letter:

• Formal Format:  Use a professional letter format with your contact information, date, and the lender’s address at the top.
• Clear and Concise:  Write in simple, easy-to-understand language, avoiding jargon and technical terms.
• Proofread Meticulously:  Ensure your letter is free of typos and grammatical errors. A polished presentation reflects well on your attention to detail and professionalism.

4. Key Elements of Your Letter:

• Introduction:  Briefly introduce yourself and state your intention to apply for a loan.
• Purpose of Loan:  Clearly explain why you need the loan and how you plan to use the funds. Be specific and avoid vague statements.
• Financial Situation:  Highlight your income sources, employment status, and any assets you own. Be transparent about your financial health and ability to repay the loan.
• Repayment Plan:  Outline your proposed repayment schedule, including monthly installments and duration. Show the lender you have a realistic and achievable plan to manage the debt.
• Collateral (if applicable):  If the loan requires collateral, mention the type and value of the assets you can offer as security.
• Closing:  Thank the lender for their time and consideration, and express your enthusiasm for a positive response.

5. Supporting Documents:

• Attach relevant documents like pay stubs, bank statements, tax returns, or business plans depending on the loan type.
• Ensure all documents are clear, authentic, and up-to-date.

Additional Tips: How to write a Loan Application Letter in Nigeria

• Be Honest and Transparent:  Don’t try to embellish your financial situation or sugarcoat any potential risks. Honesty goes a long way in building trust with the lender.
• Highlight Your Strengths:  Showcase your experience, skills, and track record of success (if applicable). This demonstrates your potential for responsible loan management.
• Tailor Your Letter:  Don’t use a generic template. Adapt your letter to the specific lender and loan type you’re applying for.
• Follow Up:  Don’t be afraid to follow up with the lender after submitting your application. Show your continued interest and address any questions they may have.

Frequently Asked Questions (FAQ):

1. What documents are typically required with a loan application letter?

This varies depending on the loan type and lender. However, common documents include pay stubs, bank statements, tax returns, and business plans (for business loans).

2. Can I apply for a loan if I have a bad credit history?

Some lenders may consider applicants with bad credit, but it may affect your interest rate and loan terms. Be upfront about your credit history and explain any mitigating factors.

3. How long does it take to process a loan application?

Processing times vary depending on the lender and the complexity of your application. Expect anywhere from a few days to several weeks.

4. What are some common reasons for loan application rejection?

Incomplete applications, insufficient income, poor credit history, and lack of collateral are common reasons for rejection.

5. What happens if my loan application is rejected?

Don’t get discouraged! Review the lender’s feedback and address any shortcomings in your application. You can also consider applying to other lenders with more favorable terms.

Conclusion: How to write a Loan Application Letter in Nigeria

Remember, a well-written loan application letter is your chance to make a strong first impression on potential lenders. By following these tips and tailoring your approach to each application, you can increase your chances of securing the funding you need to turn your dreams into reality.

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How to Apply for a Student Loan in Nigeria

Lydia Kibet

Lydia Kibet is a freelance writer with a knack for personal finance, investing, and all things money. She's passionate about explaining complex topics in easy-to-understand language. Her work has appeared on Business Insider, Investopedia, The Motley Fool, GOBankingRates, and Monito. She currently writes about personal finance, insurance, banking, real estate, mortgages, credit cards, loans, and more.

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Nigeria has made significant strides towards making higher education more accessible to its citizens. The president, Bola Tinubu, recently signed the Students Loan Bill into law, giving Nigerian students access to interest-free loans. 

If you’re wondering how to secure a student loan in Nigeria, this guide is for you. We’ll highlight the step-by-step process of applying for a student loan in Nigeria. We’ll also cover eligibility criteria, the application process, and important information you should have. 

The loan, which covers tuition fees and living expenses,  is available to all Nigerian students admitted to any public university, college of education, polytechnic, or TVET school. 

Apply for a Student Loan in Nigeria

• 01. Requirements for a student loan in Nigeria scroll down
• 02. Eligibility criteria for a student loan in Nigeria scroll down
• 03. How to apply for a student loan in Nigeria scroll down
• 04. Student Loans for Foreigners to Study in Nigeria scroll down
• 05. Loan repayment scroll down
• 06. Legal implications scroll down
• 07. Tips for applying for a student loan in Nigeria scroll down
• 08. Final thoughts scroll down

Requirements for a Student Loan in Nigeria

For your application, you must provide the following documents: 

• A duly filled application form
• A copy of your admission letter to a public university, TVET, college of education, or polytechnic
• A copy of your JAMB result slip
• A photocopy of your NECO/WAEC result certificate
• A copy of your birth certificate
• A passport photograph
• A letter from each of your guarantors addressed to the bank’s chairman or governing board, recommending you for the loan and accepting liability in the event of default.
• Two passport photographs from each of the guarantors
• Each of the guarantor’s employment letter
• If self-employed, provide particulars of your business as registered with the CAC or other relevant authorities.

Eligibility Criteria for a Student Loan in Nigeria

It’s vital to review the criteria for accessing student loans in Nigeria before beginning the application process to know whether you meet the qualifications is vital. 

Section 17 of the Act outlines the following conditions for loan applicants:

• Admission into an accredited institution: You must have secured admission into a Nigerian university, college of education, polytechnic, or vocational school established by the government. 
• Income limit: Your individual or family income must not be above N500,000 per annum. 
• Guarantors: You must provide a minimum of two guarantors. 

An applicant is considered ineligible for the loan if:

• The student is found to have defaulted on any previous loan granted by any organization
• The student is found guilty of examination irregularities by any school authority
• The student has been previously convicted of a felony or an offense involving fraud or dishonesty
• The student has been convicted of committing a drug offense
• The student’s parents have defaulted on their student loans or any other loans from any organization

If you’ve determined that you meet the eligibility criteria, you can move to the next step and apply for the student loan. The Student Loan Bill also outlined the application process for prospective students. 

Here’s the step-by-step process of applying for a student loan in Nigeria:

Step 1: Prepare Your Documents

Before starting the application, ensure you have all the necessary documents. You’re required to provide documents like your personal certificate, admission letter, JAMB result slip, and others, as highlighted above. 

Step 2: Submit the Application to the Student Affairs Office

The loan application must go through your institution, so once you’ve filled out the application form, attach all the required documents and submit them to your school’s Student Affairs office. 

Ensure all the documents you provide are factual and accurate to smoothen the application process and avoid unnecessary delays. 

Step 3: Application Review

Your institution’s Student Affairs Office carefully examines your application and gives a recommendation to the Central Bank of Nigeria (CBN). 

Step 4: CBN’s Decision

Based on the information provided and the recommendation from your institution’s Student Affairs Office, the CBN makes the final decision on whether you get the loan. 

Step 5: Loan Disbursement

If the CBN approves your loan application, the money is sent to your school. Your school then sends the funds to your account for your access. 

The application and disbursement process must be completed within 30 days of the application reaching the Committee Chairman. 

Student Loans for Foreigners to Study in Nigeria

Student loans are also available for foreigners who wish to study in Nigeria. The number one requirement is acceptance to a public institution in Nigeria. So if you have your eye on a particular renowned institution or vocational school, you can get financial aid for your studies. 

Once you’re accepted into the school of your choice, you can fill out the loan application form and provide your details. Ideally, the loans are designed to cater for various education-related expenses including tuition fees, accommodation, textbooks, and more.

Loan Repayment

It’s crucial to familiarize yourself with the repayment terms of the loan before applying for it. 

Beneficiaries of student loans must commence loan repayment two years after completing the National Youth Service Corps program. This repayment is facilitated by a 10% direct deduction of the beneficiary’s salary. 

Self-employed beneficiaries are required to remit 10% of their total monthly profit as repayment. These individuals must also report their self-employment status by submitting relevant information such as the business name, registration documents, and location. 

Legal Implications

It’s also vital to note that there are legal consequences if you default. According to the Act, if you fail to pay back the loan or help others avoid paying it, you stand to face up to 2 years in prison or pay a fine of N500,000. 

As such, you must faithfully fulfill your loan repayment responsibilities when the time comes. Timely, responsible repayment of the loan helps to sustain the loan program for future students.

Tips for Applying for a Student Loan in Nigeria

Like most financial decisions, applying for a student loan is a crucial decision you should think about carefully, as it has lasting implications on your future. Here are a few tips to keep in mind as you apply for a student loan:

Apply for Grants and Scholarships

Before applying for a student loan, apply for as many grants and scholarships as possible. There are plenty of resources online you can use to access grants and scholarships for higher education. 

Since scholarships are free money, it’s better to get a scholarship than to apply for a loan you’ll have to repay. 

Read the Terms and Conditions Carefully

Take time to read and understand the terms, interest rates, and repayment conditions before applying for the loan. You must understand the repayment conditions so you don’t accidentally break the contract and risk paying a fine or, worse, going to prison. 

Only Borrow What You Need

Calculate the exact amount you’ll need for tuition fees and other expenses. The more you borrow, the higher the amount you have to repay later, so ensure you don’t borrow more than you need. 

Final Thoughts

Accessing student loans in Nigeria has been made easier than ever. You can complete your application and submit it to your institution’s Student Affairs Office, provided you meet the eligibility criteria. 

It’s essential to understand the obligations and requirements of the loan during the application process to avoid breaching the legally binding contract.

FAQs About Applying for a Student Loan in Nigeria

Yes. Nearly all banks in Nigeria give different types of loans designed to cater to various customer needs. You can get a personal or business loan from any bank of your choice in Nigeria, provided you meet the conditions.

Several banks in Nigeria offer student loans. Some of these banks include: 

• Access Bank
• Guarantee Trust Bank
• First City Monument Bank
• Fidelity Bank
• Stanbic IBTC Bank
• Zenith Bank

The CBN does not give funds to individuals, so you can only secure funding by applying through a registered business, company, or institution.

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How to get a loan from the First Bank of Nigeria

• Updated March 25, 2024
• Read Time 12 mins

First Bank of Nigeria Limited (“FirstBank”), established in 1894, in line with its name, is the premier Bank in West Africa. First Bank commenced business on a modest scale in Lagos, Nigeria under the name, Bank of British West Africa (BBWA). First Bank is a well-diversified financial services group and the largest private-sector financial services provider in sub-Saharan Africa (excluding South Africa).

First Bank offers a comprehensive range of retail and corporate financial services, amongst which are loans and mortgages. First Bank loans are tailored to provide capital for customers to start a new business venture, own a dream home, or upgrade a car. This article is cooked to help you discover the First Bank loan that suits your need and how to apply for the loan.

Table of Contents

How to apply for a personal home loan

Requirements for personal home loan, how to apply for auto loan, requirements for auto loan, how to apply for salary loan, requirements for salary loan, how to apply for firstadvance loan through firstmobile app, how to apply for firstadvance loan using ussd code, how to apply for firstmonie agent credit, how to apply for secured overdraft, requirements for secured overdraft, how to apply for first bank contract finance, requirements for first bank contract finance, how to apply for secured term loans, requirements for secured term loan, first bank sme products financing, how to apply for import finance, requirements for import finance, how to apply for oil and gas contract finance, requirements for oil and gas contract finance, how to apply cement distributorship finance, requirements for cement distributorship finance, how to apply for invoice discounting finance, how to apply for bonds and guarantee, requirements for bonds and guarantee, how to apply for telecommunications distributorship finance, how to apply for petroleum dealership finance, how to apply for fmcg key distribution finance, requirements for fmcg key distributorship finance, how to apply for local purchase orders finance, requirements for local purchase orders finance, how to apply for operational vehicle loan, requirements for operational vehicle loan, how to apply for firstedu loan, requirements for firstedu loan, revenue loans and overdraft, how to apply for commercial mortgage, requirements for commercial mortgage, how to apply for health finance loan, how to apply for firsttrader solutions (fts), first bank personal home loans.

This loan is suitable for you if you’re looking to buy your first home, construct or simply renovate an already built house.

To apply for the Personal Home Loan, download the Home Loan Application form on First Bank website . Complete the form and submit it at the nearest FirstBank branch.

• Application letter
• Last three months payslip
• Statement of accounts
• Applicant’s letter of total emolument
• Confirmation of applicant’s employer on FBN-approved list
• Valid title document
• Letter for irrevocable domiciliation of salary for the duration of the facility.

First bank auto loan

This loan is designed to help you own your dream car within a short time frame. This loan also extends to Businesses that want to acquire vehicles for the day-to-day running of their business or other purposes. Firstbank Auto loan is restricted to employees in paid employment.

To apply for the Auto loan, download the Auto Loan Application Form on the First Bank website. Complete the form and submit it at the nearest FirstBank branch.

• Proforma Invoice from FirstBank-approved vendors
• Payslip for the last three months
• Statement of account
• Letter of total emolument.

First bank Salary loans

This loan is designed for customers who have a salary account with First Bank, to help to cover pressing financial obligations before payday arrives. There are three categories of First Bank salary loans.

Complete the form and submit it at the nearest FirstBank branch.

To apply for the Personal Loan Against Salary, you will need the following documents:

• Personal Loan Application form
• Statement of accounts.
• Applicant’s letter of total emolument.
• Confirmation of applicant’s employer on FBN approved list.
• Letter of irrevocable domiciliation of salary for the duration of the facility.

FirstAdvance loan

• Download the recent FirstMobile App from Google Play Store or Apple Store on your smartphone
• Log on to the FirstMobile App
• Open menu options on the top left-hand side
• Select ‘loans’
• Next, select ‘FirstAdvance’
• The next Menu Option shows your eligible amount and the applicable pricing and fees.
• Next, accept the terms and conditions
• Next, input desired loan amount not more the eligible amount.
• Followed by your transaction pin.
• Successful, the loan is disbursed to your salary account within minutes.
• Your account is debited for management fee & VAT, interest rate, and insurance as upfront fees and charges.
• Upon receipt of salary or 30 days (whichever comes first), your account is debited for Principal repayment.
• Dial *894# to connect to FirstBank’s USSD Banking, select 3, [Get Loans], or *894*11#
• The next menu shows your eligible loan amount
• Input desired amount and send
• Interest rate, management fees, and Insurance are displayed
• Input five-digit transaction PIN to accept terms and conditions
• The loan is disbursed into your salary account within minutes.
• Your account is debited for a management fee, interest rate, insurance, and VAT as upfront fees and charges.

Firstmonie agent credit

Firstmonie agent credit is a digital lending solution designed to provide bridge finance to help FirstBank Agents to solve liquidity challenges resulting from depleted account balances, even when the Agents have physical cash at hand.

Apply through the Firstmonie App by clicking the link and follow the prompts.

Secured Overdraft

The secured overdraft is a loan type designed to finance small- to medium-scale retail businesses with an annual turnover of ₦3 billion and below.

To apply for the Secured Overdraft Loan, download the Retail Loan Application Form. Complete the form and with the accompanying documents, submit it at the nearest FirstBank branch.

• Application letter.
• Proforma Invoice from FirstBank approved vendors.
• Company Profile.
• Current utility bill.
• Latest audited account.
• Six (6) months Bank statement.
• Other KYC requirements for opening a corporate account.

First Bank Contract Finance

This loan is designed to help you fund bigger contracts from the FirstBank-approved list of companies; for easy execution without challenges.

To Apply for Contract Finance, download the Retail Loan Application Form. Complete the form and submit it to the Retail Team at the nearest FirstBank branch along with other documents.

• Customer’s application letter.
• Letter from Employer confirming the Invoice and stating details/time of payment.
• Valid means of identification (National ID, International passport, or Driver’s License) of the prime mover or 2 of the company directors for limited liability companies.
• Six (6) months statement of account.
• LPO supply paper.
• Letter of domiciliation of contract payment from Employer Company.

Secured Term Loans

This loan facility is designed to provide retail organizations (with an annual turnover of N500 million and below) with finance to execute capital projects like acquiring new technology, asset replacement, etc.

To apply for the loan, download the Retail Loan Application form. Complete the form and with the accompanying documents, submit it at the nearest FirstBank branch.

The accompanying documents include;

• Latest Audited Account.

This loan facility is designed to support the growth of small and medium-scale enterprises with the required funds. There are eight loan schemes under this segment.

First Bank Import Finance

Import finance is targeted at FirstBank customers who are involved in the importation of raw materials or finished goods.

The loan is available to existing and prospective customers of FirstBank who can apply through any of its branches. A formal request letter is to be submitted to the Relationship Manager at the Branch.

• KYC documentation in place.
• Proforma Invoice.
• Risk Assessment Report (RAR).

First Bank Oil and Gas Contract Finance

This loan is designed to meet the funding requirements of indigenous oil and gas companies who are either customers or prospects of FirstBank.

The loan is available to both new & existing customers of the FirstBank who can apply through any of the FirstBank branches.

The documents required are:

• Contract Documents.
• Financial statement (audited).
• Evidence of past job(s) executed (copies of payment advice).
• Customer’s application Letter.

Cement Distributorship Finance

This loan is designed to meet the working capital needs of the distributors of major manufacturing cement companies.

To apply for this loan, walk into any FirstBank branch and speak with the Retail or Corporate teams.

• Account opening requirements.
• Loan processing forms and documentation.

Invoice Discounting Finance

This loan is targeted at contractors who have supplied goods/services or executed contracts for which invoices have been duly accepted for payment.

To apply for this loan, walk into any FirstBank branch and speak with the Retail or Corporate teams. The document required is the Tripartite Domiciliation Agreement.

First Bank Bonds and Guarantee

This loan is targeted at FirstBank customers who are contractors to major companies that require guarantees (i.e. comfort/security) from a bank on their contractors.

The loan is available to existing and prospective customers of FirstBank and can be applied for through any of FirstBank’s branches. A formal request letter is to be submitted to the Relationship Manager at the Branch.

• Contract/Term sheet.
• Draft Guarantee document.
• KYC documentation on Account openings.

Telecommunications Distributorship Finance

This loan is designed to provide finance for Telecoms Distributors to enhance distribution and sales of merchandise goods, particularly in the GSM and CDMA categories.

First Bank Petroleum Dealership Finance

This loan scheme provides finance for stock of white petroleum products to existing or new customers who are registered members of IPMAN and authorized dealers of Major Oil Marketing Companies such as Oando Plc, Forte Oil, 11 Plc, Conoil, MRS Oil, Total Nigeria Plc, etc.

To apply for Petrol dealership finance, walk into any FirstBank branch and speak with the Retail or Corporate teams.

FMCG Key Distributorship Finance

This loan is designed to provide structured finance to distributors of FMCG principals to meet working capital needs.

To apply for this loan, simply walk into any FirstBank branch and speak with the Retail or Corporate teams.

• KYC documentation
• Account opening requirements
• Loan processing forms and documentations
• Valid distributorship letter

Local Purchase Orders Finance

Meet all your customers’ orders in time and never run out of stock with the Local Purchase Order Finance. This loan facility is designed to provide short-term financing to small and medium scale retail customers with an annual turnover of N500 million and below facility to carry out supply orders. Only SMEs with an annual turnover of up to an N3billion are eligible.

To apply, download the Retail Loan Application Form, complete the form and submit it to the Retail Team at the nearest FirstBank branch.

• Contract Papers issued by the company awarding the contract.
• Bill of Quantity for the contract to be executed.
• Evidence of previous similar contract(s) executed by Contractor.
• Evidence of relevant government agency approval for contract.
• Any other documents that may be required by the bank.

Operational Vehicles loan

This loan scheme provides you part-financing to purchase new vehicles for the day-to-day running of your business. Only SMEs with an annual turnover of up to a N3billion are eligible.

• Six (6) Months Bank Statement.

FirstEdu Loan

The FirstEdu loan is available to Private schools owners who require extra funds for the smooth running of their school operations. The loan is available to all private schools duly registered with CAC (either Government approved or not).

• Evidence of Government Approval of school.
• School Memorandum and Articles of Association (MEMART) where applicable.
• Documents showing how long school has been in the business.
• Documents showing the number of students in the school.

The Revenue Overdraft is designed to offer short-term facilities to Local Government Councils in account relationship with FirstBank. With this credit facility, you can draw, within a specified tenor agreed amounts, exceeding the credit balance in your current account.

How to apply

Visit the nearest FirstBank branch.

Commercial Mortgage

This scheme is designed to empower small and medium-scale enterprises to finance the acquisition of landed property for commercial purposes.

• Building Plan approved by the relevant authorities
• Valuation Report to be obtained for property to be financed
• Offer Letter from a developer in cases of outright purchase
• Audited financial statements of the company

Health Finance Loan

The Health finance loan is targeted at registered pharmacies, private hospitals, and other health care service providers. This loan provides health care providers access to funding at a competitive rate and flexible term, as well as equipment financing and opportunity for business expansion.

FirstTrader Solutions (FTS)

The FirstTrader Solution is a short-term overdraft facility offered to traders in pre-approved market locations who deal in fast-moving goods. It comes in two variants; the Main FTS (180-day variant) and the Exceptional FTS (90-day variant).

To apply for a FirstTrader Solution loan, download the Retail Loan Application Form. Complete the form and submit it to the Retail Team at the nearest FirstBank branch.

Having known the various loan schemes set up by FirstBank, you can get the loan that is suitable for your need by going through the stated mediums.

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Anthony Adewuyi

Anthony is a Content Writer with MakeMoney.ng. He is passionate about Finance, Business, and Tech related topics. He is a Digital Entrepreneur with vast experience in Data Analytics and Advanced Google Analytics

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30+ How to Write an Application Letter in Nigeria with Templates

• Letter Writing
• March 1, 2024
• Application Letters

How To Write An Application Letter In Nigeria: When writing an application letter in Nigeria, it is important to follow a proper format and include all the necessary details. The letter should be addressed to the appropriate person, such as the human resources manager or admission officer. The opening paragraph should state the purpose of the letter and express your interest in the position or program.

In the body of the letter, you should provide details about your qualifications, skills, and experience that make you a suitable candidate for the position or program. You should also highlight any achievements or accomplishments that are relevant to the job or program.

In the closing paragraph, you should express your appreciation for considering your application and reiterate your interest in the position or program. You should also include your contact information so that the employer or admission officer can reach out to you for further discussion.

Also Check: Hostel Application Letter

How To Write An Application Letter In Nigeria – Follow these steps

Content in this article

Here are the steps to write an application letter in Nigeria

• Address the letter to the appropriate person or organization.
• Use a professional tone and language throughout the letter.
• State the purpose of the letter in the opening paragraph.
• Express your interest in the job or program and mention where you saw the job posting or program announcement.
• Briefly introduce yourself and highlight your relevant skills and experience.
• Provide specific examples of how your skills and experience can benefit the organization or program.
• Use bullet points to make your qualifications stand out.
• Close the letter by expressing your appreciation for considering your application and reiterating your interest in the position or program.
• Include your contact information and availability for an interview.
• Proofread the letter for spelling and grammatical errors before sending.

an Application Letter in Nigeria – Sample Format

Below is a sample format for an application letter in Nigeria. This example is for a job application:

[Your Name] [Your Address] [City, State, Postal Code] [Email Address] [Phone Number] [Date]

[Employer’s Name] [Company Name] [Company Address] [City, State, Postal Code]

Subject: Application for [Job Position] – [Your Full Name]

Dear [Employer’s Name],

I am writing to express my interest in the [Job Position] advertised on [where you found the job posting, e.g., company website or job portal]. With a [mention relevant years of experience] in [your field], I am confident in my ability to contribute effectively to your team.

• [Highlight key skills, experiences, or achievements that align with the job requirements.]
• [Mention any relevant certifications or qualifications.]
• [Express enthusiasm for the company and its mission.]

Why This Job:

• [Explain why you are interested in this particular job and how your skills align with the company’s needs.]
• [Show that you’ve researched the company and understand its values and goals.]
• [Briefly mention your current situation and why you are seeking a new opportunity.]

I have attached my resume for your consideration, providing further details about my professional background. I am eager to contribute my skills and expertise to [Company Name], and I look forward to the opportunity to discuss how my qualifications match the requirements of the [Job Position].

Thank you for considering my application. I am available for an interview at your earliest convenience and can be reached at [Your Phone Number] or [Your Email Address].

[Your Full Name]

Remember to customize this template according to the specific details of your application and the job you are applying for.

An Application Letter in Nigeria – Sample Format

an Application Letter in Nigeria – Example

Here’s an example of an application letter in Nigeria for a job position:

Subject: Application for Sales Executive Position – John Doe

I am writing to express my sincere interest in the Sales Executive position advertised on your company’s website. With a solid background in sales and a proven track record of achieving and exceeding sales targets, I am confident in my ability to contribute to the continued success of [Company Name].

In my previous role as a Sales Representative at XYZ Company, I consistently exceeded monthly sales targets by 20%, demonstrating my ability to drive revenue. My excellent communication and interpersonal skills have allowed me to build strong relationships with clients, resulting in a 30% increase in customer retention. Why This Job:

I am impressed by [Company Name]’s commitment to innovation and quality, and I am excited about the opportunity to contribute to your dynamic team. Your company’s values align with my own professional values, and I am eager to be part of a company that values excellence and customer satisfaction. Why Now:

I am currently seeking a new challenge where I can leverage my skills and contribute to the growth of a forward-thinking company like [Company Name]. I have attached my resume for your perusal, which provides additional details about my professional background. I am enthusiastic about the possibility of contributing to [Company Name]’s success and would welcome the opportunity to further discuss how my skills and experiences align with the requirements of the Sales Executive position.

Thank you for considering my application. I am available at your earliest convenience for an interview, and I can be reached at [Your Phone Number] or [Your Email Address].

Feel free to tailor this example to your specific circumstances and the job you are applying for.

An Application Letter in Nigeria – Example

An Application Letter In Nigeria for Job Vacancy

Here is An Application Letter In Nigeria for job Vacancy:

[Your Name] [Your Address] [City, State ZIP Code] [Your Phone Number] [Your Email Address] [Date]

[Recipient’s Name] [Recipient’s Title] [Company Name] [Address] [City, State ZIP Code]

Dear [Recipient’s Name],

I am writing to express my interest in the vacant position of [Job Title] in your esteemed organization as advertised on [Job Portal/Website/Newspaper]. I am a recent graduate of [Course/Program] from [University/Institution] with [Grade/CGPA], and I believe that my skills, knowledge, and experience make me an excellent fit for this position.

I have gained experience in [Skill/Experience] while working on [Project/Internship/Previous Job], and I am confident that I can bring these skills to your organization to contribute to its growth and success. I am a quick learner, a team player, and have excellent communication and interpersonal skills that will enable me to work collaboratively with colleagues and clients.

I have attached my resume, academic transcripts, and any other relevant documents for your review. I am available for an interview at your convenience and look forward to discussing my qualifications further.

Thank you for your time and consideration.

Sincerely, [Your Name]

Application Letter In Nigeria for Admission to a Nigerian University

Here’s an Application Letter In Nigeria for Admission to a Nigerian University:

[Recipient’s Name] [Admission Officer] [University Name] [Address] [City, State ZIP Code]

Dear Sir/Madam,

I am writing to apply for admission to [University Name] for the [Program] starting in [Semester/Year]. I have completed my [Secondary Education/Higher Education] from [School/College] with [Grade/CGPA] and have a keen interest in pursuing higher education in [Field of Study].

I have researched [University Name] and am impressed by its academic reputation, faculty, and facilities. I am particularly interested in [Course/Program], as it aligns with my academic and career goals. I have taken courses in [Subject] and have participated in [Extracurricular Activity] that have enhanced my skills and knowledge in this field.

I have attached all the required documents, including my academic transcripts, standardized test scores, and other relevant certificates, for your review. I am confident that my academic achievements and extracurricular activities make me a suitable candidate for this program.

I would appreciate the opportunity to discuss my qualifications further and attend an interview. Thank you for considering my application.

[Your Name]

an Application Letter in Nigeria – Template

Here’s a template you can use as a starting point for an application letter in Nigeria:

Customize this letter according to your specific situation, the job you are applying for, and any other relevant details.

An Application Letter in Nigeria – Template

Job application letter in Nigeria

Below is a job application letter in Nigeria:

Feel free to customize this letter based on your specific circumstances, the job you are applying for, and any other relevant details.

Job Application Letter in Nigeria

Nigeria cover letter

Here’s a cover letter for a job application in Nigeria:

Nigeria Cover Letter

Professional application letter in Nigeria

Below is a professional application letter for a job in Nigeria:

I am writing to express my sincere interest in the [Job Position] at [Company Name], as advertised on [where you found the job posting, e.g., company website or job portal]. With a solid background in [your field] and a track record of successful project management, I am confident in my ability to contribute effectively to your esteemed organization.

Key Strengths:

• [Highlight key skills, experiences, or achievements relevant to the job.]
• [Emphasize any certifications, training, or qualifications that make you stand out.]
• [Demonstrate your knowledge of industry trends and your commitment to continuous learning.]

Why [Company Name]:

• [Express why you are particularly interested in working for this company.]
• [Highlight how your skills align with the company’s values and goals.]
• [Show that you have researched the company and are aware of its industry reputation.]
• [Briefly explain your career goals and how this role fits into your long-term plans.]
• [Mention any unique skills or experiences that make you a strong candidate.]

I have attached my resume for your perusal, providing additional details about my professional background. I am enthusiastic about the prospect of contributing to [Company Name]’s success and would welcome the opportunity to discuss how my skills align with the requirements of the [Job Position].

Feel free to customize this letter according to your specific situation, the job you are applying for, and any other relevant details.

Professional Application Letter in Nigeria

How To Write An Application Letter In Nigeria- Email format

Here’s an Email format of An Application Letter In Nigeria

Subject: Application for [Job Position/Program Admission] at [Organization/University Name]

I am writing to express my interest in the [Job Position/Program Admission] at [Organization/University Name] and have attached my application documents for your review.

I am a [your qualification or background] with [your experience or skills] that make me an ideal candidate for this position. I have a strong [your skills] and [your skills] that I can bring to the table to contribute to the growth and success of [Organization/University Name].

I am confident that my [your skills or experience] align with the requirements of this position/program, and I am eager to demonstrate how I can make a valuable contribution to your organization/university.

Please find attached my [resume/academic transcripts/other relevant documents], and I would appreciate the opportunity to discuss my qualifications further with you in an interview.

Thank you for considering my application.

[Your Contact Information]

How To Write An Application Letter In Nigeria- Email Format

Application letter for employment in Nigeria

Below is a sample application letter for employment in Nigeria:

I am writing to express my interest in the [Job Position] at [Company Name], as advertised on [where you found the job posting, e.g., company website or job portal]. With a strong background in [your field] and a passion for [specific aspect of the industry], I am confident in my ability to contribute effectively to your team.

Feel free to customize this template according to your specific situation, the job you are applying for, and any other relevant details.

Application Letter for Employment in Nigeria

Formal letter writing in Nigeria

Formal letter writing in Nigeria follows standard conventions and formats. Here is a template for a formal letter that you can use as a guide:

[Your Name] [Your Title or Position, if applicable] [Your organization, if applicable] [Your Address] [City, State, Postal Code] [Email Address] [Phone Number] [Date]

[Recipient’s Name] [Recipient’s Title or Position] [Company or Organization Name] [Company Address] [City, State, Postal Code]

Subject: [Brief Description of the Letter’s Purpose]

[Salutation] (e.g., Dear Mr. Smith, Dear Dr. Johnson),

Introduction:

• Begin with a formal greeting.
• Clearly state the purpose of your letter.
• Provide detailed information, supporting facts, or any necessary context.
• Break the content into paragraphs for clarity.
• Use a formal tone and avoid colloquial language.

Conclusion:

• Summarize key points.
• Clearly state any actions you expect the recipient to take.
• Express gratitude or appreciation if applicable.
• Use a formal closing (e.g., Sincerely, Yours faithfully).
• Leave space for your signature.

Enclosures:

• If you are including additional documents, mention them here.

Remember to customize the template based on the specific type of formal letter you are writing and the details of the situation. Additionally, it’s important to follow any specific guidelines or requirements provided by the recipient or organization.

Formal Letter Writing in Nigeria

FAQS About How to Write an Application Letter in Nigeria with Templates

The standard format for an application letter in Nigeria includes your contact information, the recipient’s contact information, a formal salutation, an introduction stating the purpose of an Application Letter in Nigeria, a body providing details about your qualifications and experiences, a conclusion summarizing your interest in the position, a formal closing, and your typed name.

How do I start an application letter in Nigeria?

You can start an application letter in Nigeria with a formal salutation such as “Dear Hiring Manager” or “Dear [Recipient’s Name],” followed by an introductory paragraph that expresses your interest in the position and briefly outlines your qualifications.

What should I include in the body of an Application Letter in Nigeria?

In the body of the application letter, you should include details about your relevant skills, experiences, and accomplishments that make you a suitable candidate for the position. You can also provide specific examples of how your past experiences align with the requirements of the job.

Do you have any templates for writing an application letter in Nigeria?

Yes, you can find templates for writing an application letter in Nigeria online or in career resources. These templates typically include the standard format and structure for an application letter, which you can customize with your own information and details.

What are some tips for writing an effective application letter in Nigeria?

Some tips for writing an effective application letter in Nigeria include researching the company or organization you’re applying to, tailoring your letter to the specific job requirements, highlighting your most relevant qualifications and experiences, proofreading carefully for errors, and being concise and professional in your writing.

A well-written application letter can increase your chances of being shortlisted for an interview or being admitted to a program. It should be concise, professional , and tailored to the specific job or program that you are applying for.

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Bank of Industry Loan – How to Get a Loan in 5 Steps

Last updated on dec 11th, 2023.

Elizabeth Ifeoluwa

Need help starting or growing your small or medium-sized business in Nigeria?

The Bank Of Industry (BOI) Loan can provide you with a loan.

This guide will show you how to apply and the needed requirements.

How To Apply For A Bank Of Industry Loan

You can apply for BOI Loans in two ways:

• For Physical application, business owners are to visit any of the BOI branch offices located in 24 states in 6 geopolitical zones in the country or their headquarters in Lagos State.
• Applications for BOI loans can also be made online, via the Bank of Industry website or the application link .

The Interest rate for BOI Term Loans is at a maximum of 10% per annum, while that of loans for working capital is at 12-15% per annum.

BOI loans start from an amount of N5 million. However, the Bank of Industry can provide smaller loans through its matching funds platform, which it operates through Microfinance banks .

Bank Of Industry Loan Requirements

Any business applying for a Bank of Industry Loan must possess the following:

(For Micro-credit Loans)

• Application letter
• Certificate of Registration (photocopy)
• Copy of cooperative’s constitution and bye-laws
• Business plan
• Business owner’s passport photographs (4 copies)
• Copy of means of identification
• Business bank statement for one year
• Record of sales for six months and operating expenses.
• Evidence of collateral

(For Small and Medium-scale Enterprise/Large scale Entrepreneur)

• Formal letter of application
• Copies of the certificate of incorporation, a certified true copy of the memorandum, and articles of association.
• Photocopies of the certified true copy of forms C02 and C07.
• Business plan.
• Statutory Certificate of Occupancy or Deed of Assignment
• Photocopy of title documents to the collateral
• Approved building plan
• The estimate of the cost to be incurred on the factory building
• Valuation reports on factory building(s) (for existing projects) and property offered as collateral security.
• Plant and machinery quotations
• The audited accounts of the business in the last three years
• Tax clearance certificate for the company and two directors for the previous three years.
• Passport photographs of each of the two directors and the company secretary (4 copies)
• Evidence of appointment

The Bank of Industry needs businesses applying for loans to be held accountable, and so it mandates some assets of the businesses be pledged to secure the loan.

Other security options such as bank guarantees, mortgages on landed property , debentures , and external guarantors (in the case of loans worth less than N10 million). Third-party collateral is also suitable.

If you’re looking for a means to expand and grow your business, the Bank of Industry provides the perfect loans suitable for such capital-intensive financing.

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You can make free partial or full liquidation at your conveninece through our 24/7 online banking.

Wide range of channels where you can make repayment.

If you need additional financing during your loan tenor, we offer you a top up as long as you have made regular repayments.

Eligibility & Documents

Application eligibility.

• Age: From 21- 60 years
• Min Loan: ₦175,000
• Max loan: ₦35,000,000
• Min Salary: ₦120,000.00
• Employees of Reviewed and Approved Companies.

Documents Required

• Completed application form
• Bank statements for the last 3 months
• Pay slips for the last 3 months
• Letter of Awareness from employer to domicile your salary with Standard Chartered Bank

The following documents are required:

• Signed application form
• Bank statements for the last 3 months (for new to bank)

You can borrow up to ₦35M depending on the organisation you work for and your income. You will be advised at the time of application.

You have up to 60 months to repay the loan depending on the organisation you work for and your income. You will be advised at the time of application.

Yes. We require you to domicile your salaries and allowances with the bank. You will be required to instruct your employer to do so and your employer must confirm this in writing.

In order to qualify, you must earn a minimum of ₦120,000. You must also be a permanent and confirmed employee of the organisation.

Yes. In order to do this, you will go through the normal application process. In addition, we require a letter from the bank where your loan is stating the outstanding balance of your loan that is required to be settled. Standard Chartered Bank will pay this amount directly to the bank from the proceeds of your new loan.

This loan is unsecured. All that we require is for you to receive your salaries and allowances through Standard Chartered Bank throughout the period of the loan.

Yes. This can be done 6 months from the date you took the initial loan. A good repayment history is also required and we can work with you on this.

Yes, you can pay down your loan before maturity.

Yes. This is an all-purpose loan and can be used for any purpose of your choice.

Call our hotline for further information.

+2348001235000 (Toll free number)

01 2704611 – 4 (When dialing in Nigeria)

+234 1 2704611 – 4 (When dialing from overseas)

Alternatively, please drop us an email and we will contact you soon.

Visit the branch that is nearest to you.

Related Links

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• LATEST NEWS IN NIGERIA
• ENTERTAINMENT

Nigerian Students loan portal kicks off (How to apply)

The managing director/chief executive officer of the Nigeria Education Loan Fund, Akintunde Sawyerr, recently announced that the launch portal will be on Friday, May 24, 2024.

According to NELFUND, the scheme’s first phase will include 1.2 million federal higher institution students.

He stressed that the next phase will include students from State universities in Nigeria.

Sawyerr said the requirements to apply for the loan include an admission letter from the Joint Admissions and Matriculation Board, a National Identity Number, a Bank Verification Number, and completed application forms from its website.

Meanwhile, students in private universities have kicked against exclusion from the scheme.

Here is the step-by-step application process of the Nigerian student loan scheme:

How to Apply for Student Loan

Step 1: visit nelf.gov.ng

Step 2: Click on the “Apply Now”

Step 3: Click on “Get Started”

Step 4: Answer the questions on this page to continue by clicking on “Yes, I am a Nigerian”

Step 5: Verify your educational information. To check if your school has uploaded your details, select your school from a dropdown menu and provide your matric number.

Step 6: Click the “Verify with JAMB” and enter your JAMB details on the screen.

(Students whose NIN has not been registered with JAMB will have an input field where they can enter their NIN for validation.)

Step 7: Create an account by entering your email address and password. Confirm the password in the fields provided and click “Create Account.”

Step 8: Click the email verification link sent to your email. This concludes the process of creating an account.

HOW TO COMPLETE YOUR PROFILE

After successful registration, log in by clicking the “LOGIN” button.

Step 1: Enter your email address and password to “LOGIN”.

Step 2: Click on the “Proceed to Contact Details” button.

Step 3: Update contact details with the current information of your phone number, full residential address, state of residence and local government area of residence. Then click “Proceed to Educational Details.”

Step 4: Update your educational details by selecting your higher Institution and inputting your matric number. Then click “Proceed to Account Details.”

Step 5: Verify your BVN by entering it, selecting your bank name, and entering your account number. Click “save changes” to complete your profile.

LOAN APPLICATION

Step 1: After logging into the application, Click the “Request for student loan” button at the top right of the home or loans page screen.

Step 2: If you want an upkeep loan, click the check box and click *continue,” if all you need is the institutional charge, click the “Continue” button.

Step 3: Upload supporting documents. The admission letter is compulsory, but the student ID and institution invoice are optional.

Click the checkbox for the policy and declaration and click “continue.”

Step 4: Read the loan overview and click the checkboxes for both the terms & conditions and GSI Mandate, then click “Submit Application”

Step 5: Click on the “loans” button to view the status of your application.

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What Is a Letter of Explanation for a Mortgage?

Why do you need a letter of explanation, how to write a letter of explanation.

• Frequently Asked Questions (FAQs)

The Bottom Line

• Buying a Home

How to Write a Letter of Explanation for a Mortgage

A letter of explanation may help you get approved for a mortgage

Wichayada Suwanachun / Getty Images

When you apply for a mortgage, the lender will review information such as your credit history, employment, income, assets, investments, and outstanding debts. But your financial statements, credit report, and tax returns don’t always tell the full story about your financial situation.

A letter of explanation helps clarify any information that might give a lender pause. Learn more about when you might need a letter of explanation for a mortgage application and how to write the letter. 

Key Takeaways

• Some mortgage lenders may request a letter of explanation if there is confusion about any details in your financial documents.
• If you’re applying for a government-backed mortgage like an FHA or VA loan, a letter of explanation may be required. 
• Even if your lender doesn’t require a letter of explanation, including one may help clarify details in your mortgage application that could otherwise lead to denial. 
• You may need to include supporting documentation to give your letter of explanation more credibility.

A letter of explanation, sometimes referred to as an LOX or LOE by mortgage underwriters, is similar to a cover letter for a job application. Just as a cover letter expands on the details in your resume, a mortgage letter of explanation further explains your financial documents. For example, you might need to explain that last year’s income wasn’t typical because you took a sabbatical, or that you missed a payment due to a healthcare emergency.  

“A letter of explanation is not a standard or defaulted requirement for a mortgage application,” said Shmuel Shayowitz, president and chief lending officer at Approved Funding, a licensed mortgage bank and direct lender. However, your mortgage lender may request one if your financial information needs clarification. If you’re applying for a government-backed loan, the agency that insures the loan may also require a letter of explanation in certain situations. 

Even if it’s not required, it can’t hurt to include a letter of explanation with your mortgage application. “The default for some processors and underwriters is to assume the worst or to err on the side of caution when something is unclear or complicated,” Shayowitz said. “Being proactive with explanation letters can go a long way in helping a loan processor and mortgage underwriter understand something that might be confusing.”

In particular, the following situations merit the inclusion of a letter of explanation. 

Erratic Income or Gaps in Employment

Most lenders look for a consistent and reliable income that ensures you can keep up with your mortgage payments. If you were unemployed or did not receive income for more than a month over the last two years, you should include a letter of explanation that details the reason you weren’t working, such as:

• Childbirth or caring for another family member
• Pursuing further education
• Being laid off
• Being self-employed or working in a seasonal industry
• Going out of business or downsizing

If you were able to make regular payments on your debts and support yourself with savings during that time, be sure to mention that in the letter.

Issues on Your Credit Report

If your credit report shows red flags, like missed payments or defaults, bankruptcies , or foreclosures , it’s essential to include a letter of explanation noting what happened and why it’s not likely to reoccur. You’ll also want to include the date of the event, the name of your creditor, and the account number associated with the delinquent debt.

No Rental or Mortgage Payment History

If you have been living with a friend or family member rather than making monthly housing payments for your own place, the homeowner you live with will need to write a letter of explanation. The homeowner should explain that they haven’t charged you rent and include the dates you lived on their property before signing the letter. 

Profits or Losses From Farming

If you filed Schedule F with your tax return because you earned or lost income from a farm property, you’re required to include a letter of explanation. Include the address of the farm and clearly state that it is not located on the property you’re buying with the mortgage. 

Large Deposits or Withdrawals

If you received a large deposit to your bank account, the lender might think you accepted a gift or a loan from a family member and wonder if your income is sufficient without additional help. A large withdrawal may also indicate to the lender that you’re having financial troubles. There are other reasons for large bank transactions, however. For example, you may have received a bonus from your employer, liquidated investments at an opportune time, or withdrawn funds for a home renovation. Include a letter of explanation that shows why the atypical transaction occurred. 

Possible Occupancy Questions

Lenders underwrite vacation homes and investment properties differently from primary residences. It’s illegal to misrepresent your occupancy intentions. If you’re applying for a primary residence mortgage for a property located far from your employer, or if you’re applying for a second home mortgage for a property in close proximity to your primary residence, the lender may think you intend to use it as a rental property. 

If you think the lender may have questions about how you intend to use the property, include a letter of explanation.  

Address Discrepancies

If any of your documents show a different address, you should include a letter of explanation with a reason for the discrepancy to assure the lender you’re not a victim of identity theft.  

“Your explanation letter should be specific, precise, and well-communicated,” said Shayowitz. Avoid general statements about your ability to manage your finances and speak to a specific issue. 

For example, if you missed a payment, explain why it happened, point to your otherwise positive payment history, and state when you brought your account back up to date. A statement like “I make every effort to stay on top of my payments” is too vague because it won’t provide the lender with the details they need to make an approval decision. 

You may need to attach supporting documentation as well. For example, if you’re buying a home far away from work, you might want to include a letter from your employer that shows your remote work arrangement. If you took out a large withdrawal to pay for landscaping in order to prep your home for sale, include a receipt from the landscaping company. If you missed a payment due to being hospitalized, include medical records. 

You’ll also want to include the following elements:

• Your name, address, and phone number
• The lender’s name, address, and phone number
• The mortgage application number
• Your explanation, which should refer to the attached documents that support it
• Your signature and the date

Example of a Letter of Explanation

Today’s Date

Example Lender Lender Address

Loan Application Number

RE: Anna Smith’s Mortgage Application

To Whom It May Concern,

I am writing to explain my gap in employment that occurred between 02/15/2023 and 04/10/2023. 

My mother was admitted to the hospital for surgery on 02/09/2023 after a fall. I applied for Family and Medical Leave on 02/10/2023 in order to care for my mother during her recovery. My employer approved FMLA-protected leave on 02/14/2023. I have attached the approval letter from my employer, which grants up to 12 weeks of leave. 

During my period of unpaid leave, I relied on sufficient reserves in my savings account as well as my husband’s income to cover my expenses. I didn’t miss any payments on my credit cards or auto loan. I returned to work on 04/11/2023. In the following months, I made several deposits into my Capital One savings account to replenish my reserves. 

Anna Smith’s Address Anna Smith’s Phone Number

How Do You Start a Letter of Explanation?

At the top of the letter, include the date, the name of the lender, the lender’s address, and your loan application number. In the next line, write “Re: (Your Name)’s Mortgage Application.” Address the letter to “To Whom It May Concern,” and note which issue you are addressing in the first sentence. 

What If Your Mortgage Letter of Explanation Is Rejected?

If your letter of explanation is rejected, you have a few options. If the information you provided wasn’t sufficient, you can write a more detailed letter and include supporting documentation. You can also try applying for a mortgage from a different lender. If you’re struggling to get approved , you may need to resolve whatever problem you’re explaining in the letter before trying again. 

How Long Should a Letter of Explanation Be?

A letter of explanation only needs to be long enough to convey the details of the issue you’re explaining. For example, if you missed a payment, you should include the date of the missed payment, the reason you missed it, and how you’ve remedied or plan to remedy the issue. A few sentences may suffice, or your letter may run longer if it’s a complex situation and you need to reference supporting documents. 

Is a Letter of Explanation Necessary?

A letter of explanation is not always necessary. If there are no red flags in your financial history, you may be approved without a letter of explanation. But if there are issues that might raise concerns, you’ll want to include a letter of explanation. You’ll also need to write a letter of explanation if the lender requests one, or if it’s required by the government agency backing the mortgage. For example, for all FHA-approved mortgages , the Department of Housing and Urban Development (HUD) requires a letter of explanation from borrowers who have collection accounts or judgments.

A letter of explanation can help your mortgage application process, especially if you have had financial issues you want to clarify. A good letter will address the specific issues and explain why they are not likely to reoccur. Consider consulting a real estate professional for more guidance in writing a letter of explanation that fits your needs.

Chase. " What Documents Are Needed to Apply for a Mortgage? " 

Citizens Bank. " How to Write a Letter of Explanation ." 

National Association of Mortgage Underwriters. " Best Practices: Letters of Explanation ." 

Ally Bank. " How to Write a Letter of Explanation ." 

Newcastle Loans. " Principal Residence, Second Home, or Investment Property? " 

Griffin Funding. " Letter of Explanation ." 

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News Agency of Nigeria

Africa's Media Giant

NELFUND opens portal for 1st phase of students loan application

By Funmilayo Adeyemi

The Nigerian Education Loan Fund (NELFUND) has opened the application portal for the first phase of its student loan scheme, targeting students from federal institutions across the country.

The loan website became active early Friday morning, launching the scheme’s pilot phase for students of federal tertiary institutions.

Mr Nasir Ayitogo, the Media and Public Relations Lead of NELFUND, provided a step-by-step guide for the loan application process.

Ayitogo listed the procedures as:

CREATING AN ACCOUNT

Step 1: visit www.nelf.gov.ng

Step 2: Click on the “Apply Now”

Step 3: Click on “Get Started”

Step 4: Answer the questions on this page to continue by clicking on “Yes, I am a Nigerian”

Step 5: Verify your educational information. You would be required to select your school from a dropdown and provide your matric number to check if your school has uploaded your details.

Step 6: Click the “Verify with JAMB” and enter your JAMB details in the screen.

(Students whose NIN has not been registered with JAMB will have an input field where they can enter their NIN for validation.)

Step 7: Create an account by entering your Email address, Password and Confirm Password in the fields provided and click “Create Account”.

Step 8: Click the email verification link sent to your email.

This concludes the process of creating an account.

HOW TO COMPLETE YOUR PROFILE :

After successful registration, log in by clicking the “LOGIN” button.

Step 1: Enter your email address and password to Login.

Step 2: Click on the “Proceed to Contact Details” button.

Step 3: Update contact details with the current information of your Phone Number, Full Residential Address, State of Residence and Local Government Area of Residence and click “Proceed to Educational Details”.

Step 4: Update your educational details by selecting your Higher Institution and inputting your Matric Number, then click “Proceed to Account Details”

Step 5: Verify your BVN by entering your BVN, select your Bank Name and enter your Account Number. Click “Save Changes” to complete your profile.

LOAN APPLICATION

Step 1: Click on the “Request for Student Loan” button at the top right of the screen on the home or loans page after logging into the application.

Step 2: If you want an upkeep loan, click the check box, and click Continue, if all you need is the institutional charge, click the “Continue” button.

Step 3: Upload supporting documents. The admission letter is compulsory which the Student ID and Institution Invoice are optional.

Click the checkbox for the policy and declaration and click “Continue”

Step 4: Read the loan overview and click the check boxes for both the Terms & Conditions and GSI Mandate then click “Submit Application”

Step 5: Click on the “Loans” button to view the status of your application.

The News Agency of Nigeria (NAN) reports that President Bola Tinubu enacted an initial version of the student loan policy in June 2023 to grant interest-free loans to students.

The scheme, which was supposed to have taken off in October 2023, was deferred until a re-enactment in April 2024.

However, NELFUND finally scheduled the opening of the loan application and issuance portal for May 24, which is now in operation. (NAN)(www.nannews.ng)

Edited by Ali Baba-Inuwa

Union faults conversion of colleges of education to varsities

Transition committee promises to reposition labour party, leave a comment.

national open university does not have jamb number

I couldn’t search my institution Federal Cooperative college, Eleyele, Ibadan

An Overview Of CBN Guidelines For Mortgage Refinance Companies In Nigeria

Contributor.

To combat the longstanding problem of homelessness in Nigeria 1 , the Central Bank of Nigeria (CBN), on the 5 th of August 2013, issued the Regulatory and Supervisory Guidelines for the Operations of Mortgage Refinance companies in Nigeria.

Drawn from the provisions of the Central Bank of Nigeria Act 2007, the Bank and Other

Financial Institutions Act (BOFIA) CAP B3. LFN 2004, extant CBN guidelines and circulars,

and other relevant laws, this guideline is aimed at regulating and supervising the operation

of Mortgage Refinance Companies (MRC) in Nigeria, and ensuring that these facilities

operate based on globally recognized guidelines, standards, and best practices, in a secure

and reliable manner.

Notably, on the 20 th of February, 2024, the Central Bank of Nigeria (CBN) shared the Revised Regulatory and Supervisory Guidelines for The Operations of Mortgage Refinance Companies in Nigeria Exposure Draft which revised and reviewed several essential conditions of the 2013 Regulatory and Supervisory Guidelines for The Operation of Mortgage Refinance Companies in Nigeria.

To keep up with the current changes in law, we will be reviewing the Regulatory and Supervisory Guidelines for the Operations of MRC in Nigeria in the light of the 2024 draft.

What is A Mortgage Refinance Company (MRC)

The revised draft defines an MRC as a financial institution established to provide liquidity refinancing and guarantee to mortgage loan originators. 2

These facilities have the primary objective of providing support to mortgage originators such as Primary Mortgage Banks (PMBs) and banks to increase mortgage lending by refinancing their mortgage loan portfolios. 3

Permissible and Non-permissible Activities of MRCs 4

In Paragraphs 2.3 and 2.4, the 2024 CBN draft provides for the list of activities in which MRCs are to engage in and activities which MRCs are not to engage in.

The following are activities which MRCs are to engage in:

• Refinancing of fully secured mortgage loans
• Investment in debt obligations issued or guaranteed by the Federal Government of Nigeria or any of its agencies, which shall not be less than 50 percent of the MRC's total investments.
• Repurchase agreements on securities, solely for the purpose of raising intermediate funding for refinancing operations prior to issuing bonds in the capital market.
• Issuing guarantee for mortgage loans as part of its off-balance sheet engagements
• Issuing bonds and notes to fund the purchase of eligible mortgages
• Other activities may be prescribed by the CBN from time to time.

The following are activities which MRCs are not to engage in:

• Granting consumer or commercial loans
• Origination of primary mortgage loans
• Acceptance of demand, savings and time deposits, or any type of deposits
• Financing real estate construction
• Undertaking of estate agency or facilities management
• Provision of project management services for real estate development
• Management of pension funds/schemes
• All other businesses are NOT expressly permitted by the CBN.

Licensing Requirements 5

Before a proposed MRC can be allowed to operate as an MRC, it must apply for and be granted the MRC license. The application for this license is in 2 stages:

• Approval-in-principle
• Final license.

Approval-in-Principle License Grant (AIP) 6

To be granted the Approval – in – Principle license, a proposed MRC must:

• Submit a letter of intent to apply for an MRC license addressed to the Governor.

Upon doing this, the promoters and investors shall be invited to make a pre-licensing presentation to CBN's Director of Financial Policy and Regulation Department covering the following under-listed areas:

• The business case or model for the MRC;
• Profile of the promoters;
• The proposed shareholding structure;
• Profile of the proposed Directors;
• Sources of funds for the minimum capital;
• Proposed organizational structure; and
• AML/CFT/CPF compliance program.
• Upon satisfying the CBN with its presentation, a letter of No-Objection will be issued to the promoters to submit a formal application for the grant of Approval-in-Principle (AIP) addressed to the Governor of the CBN and accompanied by the list of documents in Appendix 1.
• MRCs are required to deposit the required Minimum Regulatory Capital of N5,000,000,000 to a designated account in the CBN and provide evidence of the deposit.
• Where CBN is satisfied with the application and has verified the capital contributions of the prospective shareholders of the proposed MRC, it may issue an AIP to the promoters. It is noteworthy that till the AIP is granted by the Bank in writing, a proposed MRC CANNOT apply to the CAC for registration or incorporation.
• Upon grant of the AIP, the proposed MRC shall be unable to make any form of amendment to the approved ownership structure and board composition as captured in the AIP without the prior written approval of the Bank.

Upon incorporation and opening of a corporate account, the proposed MRC may apply for and be paid 20% of its capital deposit to enable it to meet its pre-operational expenses.

Final License 7

Not later than six (6) months after obtaining the AIP, the promoters of a proposed MRC shall submit an application to the Governor of the CBN for the grant of a final license.

This application is to be accompanied by the supporting documents listed in Appendix 2 of the Guidelines.

Upon a satisfactory review of the submitted documents, CBN shall conduct a pre-licensing inspection to assess the readiness of the proposed MRC to commence operations.

Where the pre-licensing inspection is satisfactory, the MRC may be granted a final license upon payment of a non-refundable licensing fee of N5 million through RTGS to the designated CBN account.

Refund of Capital Deposit 8

The minimum capital deposited with the CBN shall be refunded whether or not the license is granted.

Where an MRC license is granted, then a refund of the balance of its capital deposit (where the proposed MRC had received a percentage of the capital deposit post AIP) or the full sum shall be made to the MRC together with any investment income, which shall be treated as an income of the MRC.

Where the MRC license is not granted then a refund of the capital deposit with any accrued interest (less any administrative charge) shall be made to the applicants using the account from which the deposit originated.

• At any time before the grant of a final license, the CBN may vary or review any condition of a license or impose additional conditions.
• Where a license is granted subject to certain conditions, the MRC shall comply with those conditions to the satisfaction of the CBN within such period as may be deemed appropriate in the circumstances as failure to comply renders the MRC guilty of an offense under BOFIA 2020.

Financial Requirements of MRCs 10

The financial requirements of MRCs which may be varied as the CBN considers

necessary are as follows:

• Minimum capital – N5,000,000,000.00
• Non-refundable application fee – N1,000,000.00
• Non-refundable licensing fee – N5,000,000.00
• Change of Name fee – N500,000.00

Corporate Governance Requirements Of MRC 11

The ultimate responsibility for the operations of an MRC shall be vested in its Board of Directors who amongst others, have the duty to act in good faith in the best interest of the MRC, Direct operations in conformity with the requirements set forth in these regulations and other such requirements and directives as the CBN may issue from time to time.

The number of directors on the board of an MRC shall be a minimum of seven (7) and a maximum of eleven (11).

At all points in time, the non-executive members shall be more than the number of the executive directors.

The approval of the appointment of each director who meets the requirements as specified by the CBN from time to time shall be by the CBN.

The Executive directors of an MRC shall hold office for a maximum period of twelve (12) years in the one MRC or within a group structure, subject to other applicable tenure limits.

Non-Executive directors shall serve for a term of not more than 4 years and such term may be renewed only twice.

An Independent Non-Executive director shall serve for a term of four years renewable only once.

This means that a Non-Executive Director shall not be allowed to serve for a period exceeding 12 years in total, and an Independent Non-Executive Director shall serve for a period not exceeding 8 years in total.

The tenure of an Executive Director (ED) who becomes the MD/CEO of the same MRC before the end of his/her maximum tenure as ED (12 years), is subject to a maximum period of twelve (12) years as MD/CEO.

Minimum Qualification of Board Members 12

The minimum qualifications and experience for persons who may occupy Board positions are as follows:

• Positions of Managing Director/Chief Executive or executive members of the Board:
• A recognized university degree or its equivalent in any discipline
• A professional qualification in banking, finance, or other related fields may be an added advantage
• At least 20 years post qualification experience in banking or related industry for the Managing Director and 15 years for the position of Executive Director.
• The positions of Non-Executive members of the Board:
• At least 5 years of post-qualification experience

Sources of Funds of MRCs 13

An MRC fund source shall consist of the following:

• Paid-up share capital and reserves
• Long term loans
• Debentures and bonds
• Loans from national and supra-national governments and other bodies
• Funds from development partners
• Gifts and donations

Rendition Of Statutory Returns 14

MRCs have the duty to render the following returns to the CBN:

• Monthly Returns not later than five (5) days after the end of each month
• Anti-Money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing of Weapons of Mass Destruction in Financial Institutions Return
• Quarterly Returns not later than five (5) days after the end of each quarter
• Annual audited financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) not later than three (3) months after the end of a financial year.

These returns are to be submitted to the Director, Other Financial Institutions

Department, CBN, or any other department as may be prescribed by the CBN

from time to time.

Mortgage Refinancing Rules 15

An MRC is to only refinance mortgages of borrowers in good standing and the refinancing shall be made with clearly disclosed, non-preferential terms and conditions.

A borrower is deemed not to be in good standing if the borrower fails to satisfy any of the following conditions:

• Receives a qualified opinion on the borrower's most recent AFS
• Is unprofitable for four consecutive quarters
• Fails to meet its capital adequacy or liquidity ratio requirements as prescribed by the CBN
• Is delinquent on its payment obligations at any time (for existing obligors)

In refinancing mortgages of borrowers, an MRC's credit to a borrower shall be fully secured by pledged qualified collateral at all times, with each borrower providing a specific listing of otherwise unencumbered collateral that secures each advance.

A pledged qualified collateral shall be deemed to fully secure an MRC's credit when it exceeds at least 125 percent of the refinanced amount.

A MRC shall not extend credit exceeding 50 percent of its shareholders fund unimpaired by losses to a single customer, without prior approval of the CBN.

MRCs are expected to assess the value of the collateral that is to secure the advances before refinancing, and at least within every twenty-four months thereafter for all outstanding advances.

Management of Interest Rate Risk 16

Every MRC shall be required to match-fund long-term advances to borrowers with obligations of similar characteristics and duration so as to maintain minimal risk exposure.

In other words, the funding sources used by mortgage refinance companies for their long-term advances should have similar attributes and durations as the borrower's mortgages being refinanced.

Branch Expansion, Relocation, and Closure of MRCs 17

No branch of an MRC shall be opened, relocated, or closed without the prior approval of the CBN.

Application for the opening of a new branch shall be accompanied by the following documents:

• A copy of the Board resolution approving the proposed branch
• A detailed feasibility report on the branch shows:
• Rationale for the branch.
• Initial capital outlay for the branch.
• Projected income and expenditures for a 3-year period.
• The proposed organizational structure of the branch.
• Staffing requirements.
• The assumption for the financial projection in the Report.

Every MRC seeking approval for the opening of a new branch must have record of good financial performance, regularity in the rendition of all returns and compliance with laws and extant regulations.

Application for the closure of an MRC branch shall be accompanied with:

• A copy of the Board Resolution authorizing the closure.
• Reasons for the closure with relevant evidence.

Changes in Ownership Structure of MRCs 18

Except with the Bank's prior written authorization, an MRC may not engage in an arrangement or agreement which:

• Produces a change in the ownership or control of the MRC. In furtherance of this, shareholders are prohibited from selling or transferring their shares without the Bank's prior written approval.
• Allows the sale, disposal or transfer of the whole or any part of the business of the MRC
• Allows the reconstruction of the MRC,
• Allows the amalgamation or merging of the MRC with any other corporation
• Allows the hiring of a management agent, or the transfer of the MRC's operations to any such agent.

Examinations of MRC 19

MRCs are subject to examinations following the same guidelines and processes that apply to banks and other financial organizations. Upon request by the Bank, an MRC will provide its books and records for inspection and other supervisory purposes in a timely manner.

An MRC will be subject to off-site monitoring by the CBN and will submit reports on a regular basis in compliance with Section 7 of the guidelines.

Sanctions 20

Where an MRC contravenes a provision in the guideline, the CBN may impose one or more of the following sanction:

• Monetary penalties in such amounts as may be determined by the Bank.
• Prohibition from declaring or paying dividends.
• Suspension of access to the credit facilities of the CBN.
• Suspension of lending and investment operations, capital expenditure, and/or debt issuance.
• Suspension or removal from office of the offending director, officer or employee.
• Disqualification from holding any position or office in any licensed bank, MRC or other financial institution in Nigeria.
• Revocation of licence.

Where an MRC, a director, or an employee is engaging in, has engaged in, or the CBN has reason to believe is about to engage in an unsafe and unsound practice in conducting the MRC business, or engages in any other conduct that contravenes any of the guidelines or other applicable laws and directives, the CBN may also issue cease and desist orders.

The release of the Regulatory and Supervisory Guidelines for the Operations of Mortgage Refinance companies in Nigeria by the CBN is an important development in the regulation of MRCs in Nigeria. It is believed that with proper implementation and enforcement, this guidelines will develop and strengthen the growth of mortgage refinance companies, which are vital in providing liquidity to mortgage lenders thus expanding the access of Nigerians to affordable housing finance options and ultimately developing and strengthening the Nigerian mortgage market.

1. World Population Review ( https://worldpopulationreview.com/country-rankings/homelessness-by-country )

2. Section 2.1 of the Revised Regulatory and Supervisory Guidelines for The Operation of Mortgage Refinance Companies in Nigeria Exposure Draft (The 2024 Guidelines)

3. Section 2.2 of The 2024 Guidelines

4. Section 2.3 and 2.4 of The 2024 Guidelines

5. Section 3.0 of The 2024 Guidelines

6. Section 3.1 of The 2024 Guidelines

7. Section 3.2 of The 2024 Guidelines

8. Section 3.4 of The 2024 Guidelines

9.Section 3.5 of The 2024 Guidelines

10. Section 4.0 of The 2024 Guidelines

11. Section 5.0 of The 2024 Guidelines

12. Section 5.2 of The 2024 Guidelines

13. Section 6.0 of The 2024 Guidelines

14. Section 7.0 of The 2024 Guidelines

15. Section 8.3 of The 2024 Guidelines

16. Section 8.5 of The 2024 Guidelines

17. Section 9.2 of The 2024 Guidelines

18. Section 9.3 of The 2024 Guidelines

19. Section 10.0 of The 2024 Guidelines

20. Section 11.0 of The 2024 Guidelines

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Finance and Banking

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• Introduction

Step 1: Start with the FAFSA

Step 2: understand your financial aid award letter, step 3: complete additional paperwork (if required), what about private student loans, navigating the student loan application process.

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• You'll apply for a federal loan with the FAFSA, and a private loan on the lender's website.
• The FAFSA takes about an hour to complete, while private applications can just a few minutes.
• You'll need a credit check to get a private loan and to get a Direct PLUS Loan from the government.

If you need help paying for college and didn't receive enough money through scholarships or work-study programs, you may need to take out a student loan to cover the costs of school.

Getting a student loan is a fairly straightforward process. You'll apply for the loan through a federal or private lender , then wait for the funds to be disbursed to your school.

The FAFSA is the key to obtaining federal aid. FAFSA — which stands for Free Application for Federal Student Aid — determines one's eligibility for loans, grants, and work-study. 

To get started, create your FSA ID , which is essentially your electronic signature for the FAFSA. Parents of dependent students also need an FSA ID. From there, check federal and state deadlines. And remember: Applying early is best!

You won't need a credit check with federal loans, with the exception of a Direct PLUS Loan , which is lent to the parents of undergraduate students or to professional and graduate students. This loan is not based on financial need and has a higher interest rate than subsidized or unsubsidized loans. 

Each school that you've been accepted to will send out a financial award letter detailing the aid package being offered. It will include grants, scholarships, work-study details, and federal student loans (subsidized and/or unsubsidized). After reading through your letter, decide which package makes the most sense for your situation. You don't have to accept the full loan amount offered.

If you have the option, you'll want to take out a subsidized loan over an unsubsidized loan . Subsidized loans are made based on financial need, and the government pays the interest on your loan while you're in school. Financial need doesn't factor into unsubsidized loans, and interest begins to accrue immediately. 

Once you've decided on a financial aid package, fill out any required paperwork and keep all your documents in a safe place. From there, sign up for any online sessions explaining your borrower responsibilities.

You'll also need to sign a Master Promissory Note if you choose to take out a loan. An MPN is a legal document you sign to promise to pay back your loan along with interest and fees. You'll also determine the amount of money you want to borrow and your repayment term. The government won't disburse your loan until you sign this document. 

You can generally expect your school to get your federal funds about 10 days before classes begin. You may experience a 30-day delay if you are both a first-year student and a first-time borrower.

Private student loans often come with higher interest rates and fewer protections for borrowers than federal student loans, but you may need to take them out if your federal options don't cover the cost of your school. 

You can find different applications for private student loans on lenders' websites. You'll probably need to provide similar financial and identification documents as you would on the FAFSA, though the requirements will vary by lender. 

Private lenders will run a credit check to figure out if you qualify for a loan, much like the federal government does with Direct PLUS Loans. Discuss details with your particular lender.

You can apply for a private student loan much more quickly than a federal student loan. You could get your rates and see whether you're approved for a loan within a few minutes with some businesses, and most companies will give you an approval decision within 15 minutes. 

If you want to know the status of your loan disbursement, you can usually check a lender's online portal or call customer service. You'll need to agree to terms similar to those in an MPN and sign a binding document.

Once you officially accept the loan, your college will likely get funds from a private lender within two to 10 weeks. You'll get the funds in your personal bank account if you take out a direct-to-consumer loan, while your school's financial aid office will get the money if you take out a school-certified loan. 

You can fill out the FAFSA before being accepted, but you'll need to add schools later to actually receive award letters.

Schools will usually disburse loans at the start of each semester, but timing can vary.

To get help with the application process, visit your school's financial aid office, the Federal Student Aid website , or your high school counselor.

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

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