First Bank Loan: How to be Eligible for First Bank Loan

last Updated on September 24, 2023

If you’re in need of a loan – perhaps to fuel a business dream, purchase your dream home, or consolidate debts. In Nigeria, a First Bank loan offers a promising solution to realize these aspirations.

In this comprehensive guide, we’ll walk you through the step-by-step process of how to become eligible for a First Bank loan in Nigeria. By following the guidelines in this guide, you’ll boost your chances of loan approval and secure the financing needed to achieve your financial goals.

First Bank of Nigeria which was initially Bank of British West Africa as at 1894 is listed on the Nigerian Stock Exchange as FirstBank.

How to be Eligible for First Bank Loan

For you to be eligible for a First bank loan. Here are the requirements you need to meet:

• You must own a First Bank account in Nigeria
• Must be an employee with proof of steady salary income within the last 6 months.
• Your salary account will need to be a First bank account.

First Bank Loan Interest Rate

The First bank loan interest rate ranges from 20% -30%.

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How to get Loan from First Bank Using Code (FirstCredit)

To get a loan from First Bank in Nigeria, follow these steps:

• Dial *894#
• Then Select Loans
• Choose FirstCredit
• Next, select Get a new loan
• Then choose the First bank account number with which you want to apply for the loan
• Accept the terms and conditions
• Four loan amount options will be displayed, Choose your preferred Loan Amount
• Finally, First Bank will disburse the loan into your account

Understanding First Bank Loan Products

These are the types of First Bank loans available to customers in Nigeria;

• FirstCredit
• Personal Home Loans
• Joint Mortgage
• Automobile Loans
• Salary Loans
• FirstGem Funds
• Contract Finance
• SME Products Finance
• Local Purchase Order Finance
• FirstEdu Loan
• Revenue Loans and Overdraft
• Health Finance Product
• First Trader Solutions

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FirstCredit

FirstCredit is a product designed to provide you with a quick and simple loan to fund your transactions. Loans can be accessed from anywhere without visiting the Bank

No documentation or collateral is required all the customer needs is a mobile phone or tablet.

Features of FirstCredit

• Easy and convenient access to loans to meet needs.
• Quick loan request and disbursal
• No physical documentation is required
• No collateral required
• The customer’s account must have been operational in FirstBank for at least 6 months.
• Own a valid BVN linked to your First bank account
• Customers must have correctly updated phone numbers
• A good credit record
• Loan Amount: N1,000 to N300,000
• Loan Tenor: Maximum of 30 days
• Interest Rate is 10% flat
• Insurance rate of 1% per transaction
• A penal charge of 1% monthly and daily interest of 0.3% applies upon default of the loan

First Bank Joint Mortgage

With the First Bank Joint Mortgage loan, you and your partner or business partner can easily buy a property.

First Bank Joint Mortgage Features

• The First Bank Joint Mortgage loan obtainable is N70 million
• Employees and Self-employed professionals are qualified for this loan
• Applicants need to be legitimate couples or registered business partners
• Repayment is on both applicants as they applicants are joint and co-owners of the property
• Maximum tenor of 240 months (20 years), subject to 60 years retirement age
• Minimum equity contribution of 20-30% depending on the location.
• Equity contribution of 20%-30% of the property cost excluding the cost of the land, depending on the location.
• Cash flow projection on loan repayment.
• A mortgage Protection Assurance Policy is required.
• Fire and Special Peril Insurance policies are required through FBN Insurance Brokers if the loan is approved.
• Irrevocable domiciliation of salary for the duration of the facility.

Read: How to Register for First Bank Online Banking

First Bank Automobile Loans

A First Bank Automobile Loan can help you purchase your dream car.

Both Employees and Businesses can apply for this loan to acquire vehicles for the day-to-day running of their businesses or other purposes.

First Bank Automobile Loans Features

• Maximum loan amount of N15 million
• The maximum tenor is 48 months (four years)
• 20% equity contribution is required
• 22% interest rate
• Vehicles to be financed must be new and from FirstBank-approved vendors
• Salary domiciliation with the First bank
• A year of free car servicing or car serviced at 15,000km mileage (whichever comes first)
• Free fuel card available for one year
• Free car registration.
• Three-year manufacturer’s car warranty.

FirstAdvance

FirstAdvance is a loan product for payroll customers awaiting payment of their salaries for easy access to cash.

FirstAdvance is for salary earners whose accounts are domiciled with FirstBank who have received regular salaries in the last six months or more.

FirstAdvance Features

• The maximum loan amount is N500,000.00 subject to 50% of the net average three months’ salary.
• Salary account must be domiciled with FirstBankLoan amount of up to 50% of net monthly income.
• Tenor is 30 days or the next payday
• Interest rate @ 2.5%flat collected upfront
• Management fee @ 1.0%
• flatCredit Life Insurance @ 0.50%.
• Loans can be accessed up to three times a day subject to the maximum eligible amount.
• Repayment is taken immediately after salary is paid
• All fees, including Interest rate, are collected upfront upon disbursement of the loan.

How to get a Loan from First Bank App

• To get a loan with the First Bank app follow these steps;

• Download the FirstMobile app from the Google Play app or Apple app store
• Log in with your First bank online banking details
• Navigate to the loans option
• Choose FirstAdvance, and loan details will be displayed (Like eligible maximum amount and applicable pricing fees)
• Next tap the “Accept the Terms & Conditions” checkbox
• Then enter your desired loan amount. (this amount should not be more than your eligible amount)
• Then enter your First bank account transaction pin to confirm your loan application request
• If your loan application is successful, First bank will disburse the loan into your salary account in a matter of minutes.

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How to get Loan in Nigeria

Is the first bank loan not suitable for you, or do you want to explore other loans in Nigeria? Here is how to get a loan in Nigeria easily:

1. Understand Your credit score and credit history

Before applying for a loan, it is essential to understand your credit score and credit history. Your credit score is a numerical representation of your creditworthiness, based on factors such as your payment history, credit utilization, and credit mix.

A high credit score indicates that you are a low-risk borrower, while a low credit score may make it difficult to get approved for a loan.

You can obtain your credit score and credit history by getting a credit report from one of the credit reporting agencies in Nigeria.

By reviewing your credit score and credit history, you can identify any potential issues that may affect your eligibility for a loan and take steps to improve your creditworthiness.

2. Choose the Right Type of Loan

There are various types of loans available in Nigeria, including personal loans, business loans, and home loans. It is essential to choose the right type of loan for your specific needs and financial situation.

For example, personal loans are unsecured loans that can be used for a variety of purposes, such as debt consolidation, home renovations, or education expenses.

Business loans, on the other hand, are designed to help entrepreneurs finance the growth and expansion of their businesses.

While, home loans are loans specifically designed to help individuals purchase or refinance a residential property.

By choosing the right type of loan, you can ensure that the loan terms and conditions are suitable for your financial goals and needs.

3. Meet the Lender’s Eligibility Criteria

Each lender has its own eligibility criteria that applicants must meet to qualify for a loan. These criteria may vary depending on the type of loan, the lender’s policies, and the applicant’s financial situation.

Typically, lenders require applicants to meet the following eligibility criteria:

• A minimum age (usually 18 years or older)
• A minimum income level
• A good credit score and credit history
• Employment and or income verification
• Proof of identity and residence

By meeting these eligibility criteria, you can increase your chances of getting approved for a loan.

Compare Loan Offers from Different Lenders

Once you have determined that you are eligible for a loan, it is essential to compare loan offers from different lenders to find the best option. Each lender may offer different loan terms and conditions, such as interest rates, fees, and repayment terms.

To compare loan offers, you can use online loan comparison tools or contact multiple lenders directly to request quotes. By comparing loan offers, you can find the lender that offers the most favourable terms and conditions for your specific financial situation.

Here are some great lenders in Nigeria: Access bank Loan, Carbon loan, Migo Loan, Palm credit, GTB Loan, Zenith Bank Loan, Fairmoney loan, Lapo loan, Umba loan, and Alat Loan.

Submit a Complete and Accurate loan application

After choosing the lender and the loan that best meets your needs, the next step is to submit a complete and accurate loan application.

In conclusion, being eligible for a loan from First Bank in Nigeria requires a combination of factors such as a good credit score, stable income and employment, savings and assets, and providing the necessary documents and information. By following these tips, you can increase your chances of being approved for a loan from this prestigious financial institution.