How to be eligible for First Bank loan
Are you looking for How to be eligible for First Bank loan then this article will tell you all you need to know about first bank loan.
FirstAdvance is a loan-to-pay solution that is designed to provide an easy and convenient access to cash for customers who are who are waiting to receive their salary.
The product is intended to be used by salaried workers who have accounts that are registered with FirstBank and who have earned regular wages in the past at least six months. The maximum amount available will be N500,000.00 with a 50% limit on the net average salary of three months or the lesser amount. The amount eligible is calculated after deducting any other obligations for loans that are owed to the Bank. The product is accessible through our online platforms: FirstMobile and USSD.
Features Of First Bank Loan
- The Salary account has to be enrolled with FirstBank
- The amount you can borrow is up 50 percent of your net monthly income.
- It is 30 calendar days until the the next pay day (whichever is earlierThe tenor is 30 days or the day of pay [whichever comes first].
- Maximum single obligation limit of N500,000.00
- Interest rate of 2.5%flat paid in advance
- Management fee of 1.0 percent flat
- Credit Life Insurance @ 0.50%
- FirstAdvance is an improved and enhanced version Digital SODA.
- The loan is available up to three times per day with a maximum amount
- The risk Acceptance Criteria is used for FirstAdvance is fully automated.
- Payout is taken as soon as after the salary is received, while an account is re-charged for an account that isn’t funded.
- All fees, including the Interest rate, are paid upfront following the disbursement of loan.
How to be eligible for First Bank loan
In order to be eligible for FirstAdvance,
- Through FirstMobile App Or
- USSD CODE-*894*11# or *894#
1. Apply for FirstAdvance using the FirstMobile App
- Install the latest FirstMobile App from the Google Play Store or Apple Store on your mobile device.
- Log on to the FirstMobile App
- Menu options for Open on the left-hand side of the screen.
- Select ‘loans’
- Then, choose “FirstAdvance”
- The next menu option shows the amount you are eligible for and the applicable fees and prices.
- After that, Accept the terms and conditions.
- Then, enter the the amount you want to borrow, not exceeding the amount that is eligible.
- The transaction pin will be followed by the confirmation.
- If successful, the loan will be credited to your account for salary in a matter of minutes.
- Your account will be debited for management fee, TVA, the interest rate, and insurance charges as upfront fees and charges.
- After receiving your salary, or after 30 days (whichever occurs in the earlier time) your account will be debited to pay for Principal.
2. To apply with USSD Code how do I apply?
- Dial *894# with FirstBank’s USSD Banking, select 3 [Get Loans[Get Loans]
- or *894*11or *894*11#
- The next menu displays the amount of your loan that is eligible
- Enter desired amount and then Send
- The interest rate, management fee and Insurance are shown.
- Input a five-digit transaction number to agree with terms and conditions
- The loan is deposited to your pay account within a matter of minutes.
- Your account is debited to pay management fees, interest rates tax, insurance and VAT as upfront charges and fees.
- After receiving your salary, or after 30 days (whichever occurs in the earlier time) your account will be debited for principal repayment.
First Bank Loan Terms And Condition
FirstBank of Nigeria Limited (FirstBank’s) will grant a Salary advance, dubbed FirstAdvanceto qualified and interested clients of the Bank who have their salaries accounts been housed at FirstBank at a time period of two (2) months or those who earn a salary and are who are willing to transfer their account for salary to the Bank according to the following conditions:
First Bank of Nigeria Limited
The Bank may approve of the Bank
To bridge the immediate liquidity gap.
30 days or the date of the next salary payment (whichever occurs first).
Term Loans are due within 30 days or on the payday following, whichever comes first.
The rate of interest for this facility is 2.5 percent flat, per month. The rate will be subject to change at intervals according to the current conditions of the market. Any changes in the pricing of the facility that is notified to the Bank to the Borrower will be binding on the Borrower. However, any excess of the limit approved or non-liquidated expiring facility will be subject to an interest rate on the excess overdraft at a cost that is determined by the Bank.
Credit Life Insurance:
0.5 percent flat on the the facility amount of the ad to be paid in advance.
Value Added Tax (VAT)
7.5 percent flat of the Management fee
Late Payment Penalty
A monthly penalty charge of 1% on the overdue amount and the current interest rates on the amount not paid until full repayment is applicable if the facility remains unpaid after the expiration date.
Payouts from monthly salary is deposited to the Lender or any BVN linked accounts of any Bank.
Full facility cleaning after the receipt of salary or as per tenor stipulated in the case of FirstAdvance.
This facility will begin upon drawdown or the date of the disbursement, regardless of the date of offer or the date of execution.
The facility must be secured by the following:
Irrevocable Domiciliation Salary as well as Credit life insurance that covers the possibility of disability or death, and the retrenchment on the part of the Borrower within the term of loan. Employer’s promise to domicile wages as well as any autres allowances, earnings or rights and benefits at the end of their lives for employees with the Bank.
The facility will be made accessible only after complete compliance with the terms prior to drawingdown, as can be imposed by the Bank.
Conditions Precedent to Drawdown
- Reception of the monthly salary (through an approved customer database) within the account of the Lender (at minimum two (2) Months’ worth of salary must be credited to the account of the Borrower at the Bank).
- Completion of the Application and Acceptance of offer by FirstBank’s online Banking platform that includes USSD code *894# FirstMobile App, ATM and Internet Banking.
- Automatic confirmation of the eligibility.
- Irrevocable salary domicile towards the Bank. The execution of the irrevocable undertaking by Employer to domicile employee’s salary , allowances, along with other benefits, to the Bank and not to transfer salaries and additional allowances and emoluments and the final benefits of employees to another institution without the written approval by the Bank.
- Acceptance of these terms and conditions.
The Borrower irrevocably and in full confidence takes on
- To keep a salary account at the Bank for the duration of the loan
- The Salary account will be adequately in the beginning to cover commissions, interest, and other costs.
- to provide all the necessary details required by the Bank throughout the term of the loan
- to immediately notify immediately the Bank of any major adverse change in his or his personal financial situation in the first 24 hours following event.
- Use the facility only for the purposes stated.
- The Bank reserves the right to at any time the facility to be converted into overdraft or advances, commercial paper and other instruments of the money market that are available at the Lender.
- The Bank reserves the right to defer any further payments, or to recall or even cancel the facility due to infraction or non-compliance with the Covenants under this Agreement and in the event of any of the below events:
- If the Borrower takes any money that was intended to the Borrower’s account at the Lender to a different Bank.
- If the Borrower commits any infraction or fail to comply with or fulfill the other obligations as stipulated in the Terms and Conditions, or fails to adhere to the terms of repayment agreed upon
- If it is found out it was substantial mistake made by the Borrower regarding the purpose, the use of the facility, and the information provided
- The Lender could alter any or all conditions and terms to reflect the current conditions in the financial market or the monetary regulatory requirements of authorities.
- If any interest due to the loan isn’t paid by the due date, the amount will be immediately included in the principle amount in arrears and consequently will be subject to an interest rate at the rates as stated.
- The availability of funds is subject to the ability of the Bank to provide the facility within the legal limits for lending and is subject to the regulations issued by regulatory authorities.
- A renewal for the facility must depend on a new contract, and is based on good results (the Bank being satisfied that the facility was effectively utilized and fully liquidated)
- Any outstanding balances in this loan will upon default be charged one-time 1% monthly fee.
- If the Borrower is unable to make use of the facility in the reason to which it was given.
Events of Default:
In spite of anything previously contained the facility or the remaining balance of it and any other money which are herein stipulated to be paid in any way, whether through interest or any other means becomes due immediately and payable upon the day of demand regarding such facility in the event of any of the following circumstances:
- If the Borrower fails to pay any outstanding sum at the time it is due
- If the Borrower is found to have committed a violation or fails to observe or meet other obligations
- If any representation, warranty or representation made or stated by the Borrower within this Agreement as well as in any other notice or document issued or made in connection with it, is not true in any way in the time it is made or given.
- If the Borrower ceases or suspends or is determined insolvent its debts or admits in writing that it is unable to meet its obligations
- If the Borrower plans or declares a moratorium on the loan of the Borrower as a result of its facility.
- In the event that an unusual circumstance arises in which the continuation of the transaction in the judgment of the lender renders difficult for the Borrower to fulfill its obligations.
- If the Bank is required to do so by any central Bank in Nigeria’s regulations, rules, or directives to contact the facility;
- If be a belief that of the Bank be a significant negative change to the financial situation that of the Borrower;
- If any consent from a government agency necessary by law for the legality, enforceability, or legitimacy of this deal or the fulfillment of its terms expires or is not with full effect and force. In such an event, and at any point thereafter, in the event that any of these events continue the Bank will, by written notice to the Borrower declare the amount that is outstanding has been made immediately payable and will be payable, along with any interest accrued.
- If any distress or execution is imposed on or against the property of the Borrower, and is not paid within seven days.
Right of Set-off
The Borrower promises that, in addition to the general lien and other right or similar right to which the Lender as a banker could be entitled by law the Lender can at any point without prior notification to the Borrower combine or combine all or all of the accounts of the Borrower with the obligations of the Lender and then set aside or move any money or amounts being held to the credit of any or more of these accounts towards the satisfaction of the obligation of the Borrower towards the Lender or in any other manner regardless of whether the liabilities are actual or contingent primary or collateral, and joint or several.
In addition to the above, in signing the Terms and Conditions The Borrower promises to pay back the loan when it is due. If the Borrower fails to pay the loan in accordance with the terms agreed upon, and the Loan is declared delinquent the Bank will be able to submit the delinquent loan in the hands of the Central Bank of Nigeria (“CBN”) via its Credit Risk Management System (CRMS) or any other method, and to request the CBN to apply its regulatory powers to instruct all banks and financial institutions subject to its oversight to deduct the borrower’s debt from any outstanding funds at the borrower’s credit on any bank account, as well as from the other assets that they may hold to benefit the Borrower.
The Borrower promises and guarantees that the Bank is able to deduct the Borrower’s obligation under these Terms and Condition is the loan of all such money and funds that are that are a part of the Borrower’s benefit or credit in all of these accounts, as well as from other financial assets owned by the Borrower and/or in the custody of of the banks or financial institution.
Legal and other expenses
The Borrower must be responsible to the Bank for any reasonable out-of-pocket expenses including costs, charges, and expenses which are incurred by the Bank for planning, execution and and implementation in accordance with the conditions set forth by the offer which includes but not limited to Solicitors ‘ fees Stamp Duties, Registration fees. These charges and expenses will when the Borrower fails to pay by the Borrower upon request be added onto the loan facility along with any other funds due in accordance with the terms of this agreement and will be subject to interest.
The Borrower must keep an insurance policy for credit life against the loss of life, and any other risk that the Bank may from time decide to be necessary within the Insurance Company approved by the Bank. The Borrower is required to pay all the premiums due to the insurance. The interest of the Bank as the first loss payee has to be signed to the Insurance policy.
All payments, whether principal, interest or any other form are made without free of any duties, taxes or charges or deductions. They also do not have to be subject to counterclaims or set-offs. They are not subject to any limitations or conditions of any kind. If at any point any law, regulation or any other taxing body oblige the Borrower to take any deduction or withholding from amount, the amount due from the Borrower to pay the payment will be increased in the amount required to ensure that following the taking such deductions or withholdings the Bank gets a net amount that is equal to the amount they would’ve received had deduction or withholding required .
Representations and Warranties
The Borrower by signing this document irrevocably and in full confidence guarantees and represents that:
- The Borrower has the authority to sign this agreement and has taken all the necessary steps to grant it based on the conditions and terms herein.
- This Borrower has not fallen into default, or is under any obligation to repay any money borrowed and the acceptance of this facility will not constitute or cause any breach or default under any of the provisions of any other contract that the Borrower is a signatory.
- This facility granted will be cancelled and any outstanding amount will become due immediately on demand in the event that any of the above events (including not limiting any major adverse effect on the financial situation of the Borrower) is observed that, in the opinion of the Lender could impact the ability or ability to Borrower to pay the loan.
- The facility granted will be terminated and any outstanding amount will become due immediately upon demand of the same if an incident or sequence of events (including not limiting any significant adverse impact in the financial capacity that of the Borrower) is observed that, in the opinion of the Lender can affect the ability or will to Borrower to pay the loan.
- All information supplied by the Bank is correct, accurate complete, and not deceiving.
- There aren’t any ongoing or threatened actions or procedures that affect any aspect of the Borrower before any body or court that could negatively impact the Borrower’s capacity to fulfill and meet its obligations with respect to this facility.
- The Borrower is not in default under any other contract related to debts
- The facility is utilized to pay debts owed towards the Bank or any other entity or individual who is associated with the Bank under any other credit arrangement without the written consent by the Bank in writing.
- Any legal action is not orally initiated or initiated by the Borrower against the Lender jointly or in combination without first providing the Lender ninety (90) day written notification of the Borrower’s intentions to take legal action against the Lender the notice must be delivered at the address of the Lender’s registered office.
Change in Circumstance
When the Lender has concluded that the implementation of or modification to any law, regulation, or regulatory authority with its administration, or a the court having jurisdiction makes it clear that it is not legal or in violation of the law to either the Borrower or for the Lender to provide or maintain or fulfill their obligations in accordance with the conditions in this Offer Letter. the Lender will immediately notify of such an event to the Borrower and the obligation will immediately be discharged or cancelled and the Borrower is required to on the subsequent payment date or the later date that is required to repay the Lender the principal amount paid, along with the any accrued interest, should there be applicable, and any other amount that is due the Lender in this regard.
Remedies and Waivers
A delay or failure by the Lender in using any remedy or power as a Lender is not construed as a waiver or an impairment of the same neither shall it affect nor affect any remedies, rights or powers in the event of a default.
The Borrower is required to:
- It is imperative to immediately inform immediately the Bank in the event of any change in the situation or any information that is provided to the Bank or any other information that is provided to the Bank.
- The Bank additional information related to the Borrower, as the Bank might need from time to the.
- Domicile salaries as well as additional allowances, benefits and entitlements, and benefits at the end of the road to the Bank through the Bank’s pay administration program.
- Notify the Bank within two days of your resignation or transfer, dismissal, or the termination.
- Be sure to inform the Bank of any cash advances and loans from internal sources financial accommodations, or other obligation given to employees, which are not deducted from the monthly wages within 24 hours.
- Notify the Bank of all terminal benefits/entitlements including but not limited to death-in-service benefits, shares/staff investment trust benefit, cooperative society contributions, benefits or entitlement due to be credited to the Borrower’s account with the Bank, before the disengagement of the Borrower from employment
The Borrower accepts notices, documents and other communication pertaining to the facility as well as these conditions being communicated to the Bank to the Borrower or made accessible for Borrowers Borrower through email, or any other electronic method (including but not limited to the text message). The Borrower is also a consented to receiving electronic messages that the Bank could send periodically (including messages via SMS and emails).
The Borrower accepts to the Bank will use personal data to fulfill the following purposes and in accordance with Bank’s data policy , which is available on its website;
- To carry out its business
- To provide and offer its products and Services.
- To keep track of it’s relationship with creditor.
- In order to comply to Laws and Regulations.
- Information in order to Credit Agencies.
- To correct the records of the Borrower.
- To design statistics, as might be needed.
- To adhere to its internal Policies.
- Contact the Borrower whenever required.
The borrower also agrees that their consent has been granted to FirstBank to process the data of his/her own personal details when
- The Borrower must fill out any form, brochure or other material that is issued through FirstBank in any one of the service locations (mobile branch, online, in-branch etc.).) asking for this personal information.
- The Borrower makes a deposit, checks or selects the acceptance checkbox at any of the bank’s digital platform (Online and Mobile) regarding the conditions and terms of any product or service offered by FirstBank.
- The borrower can send an inquiry, complaint or any other type of communication to FirstBank.
- The Borrower is using the product or service provided by FirstBank.
Modification in these Terms
The Bank could alter the provisions in these terms and conditions, which includes the charges, without any recourse or notification of the borrowing party. Any modification to these Terms and Conditions is legally binding for the Borrower as of the date stated in the notice.
The Borrower is not permitted to assign the entirety or any portion of his or her rights, titles, interests or obligations under the facility to any third person without the Bank’s written approval. The Bank can assign, in whole or in part or all of the rights, titles and obligations under the facility without the permission by the Borrower.
A communication is not valid until it is received at the Bank. A message from Bank to Bank in the direction of the Borrower will, however, be taken to be received if:
- If it is letters, at the end of the first Business Day after posting; and
- For electronic communications, after the complete transmission to the electronic address of the recipient provided that, if the communication is sent at a time that is outside of normal business hours these communications will be considered to be to have been received on the following Business Day. The phrase “Business Day” is a term used to describe the day (other than Sunday or a Saturday) when banks are open to business in Nigeria.
This agreement will remain in effect so long as the Bank is a creditor to the Borrower or for as the remaining balance of the loan remains unpaid.
- The failure to enforce of any provision contained in these Terms is deemed to constitute a waiver of the rights of the Bank under these Terms. Neither does the Bank be hindered from exercising its rights under the Terms later at any time.
- We are able to at our absolute discretion, record calls to us and other communication between us and you, to ensure compliance and/or monitoring purposes.
- We are authorized to exercise the right of set-off at any time that we think appropriate with respect to money and other funds that are which are in your benefit/credit any account that you maintain with us or another Bank in any Currency to settle any unpaid dues to us.
- You agree that the details provided to the Bank concerning your application is accurate and complete in all respects. You also consent to provide further confirmation or supporting documents the application as requested from the Bank.
- The application you submit of the loan (“application”) will be subject to Bank’s procedures and review. The Bank retains the discretion to either accept or deny your application.
- The inability, illegality, or non-enforceability of a clause of these terms and conditions in the context of any law does not impact any legality, or enforcement of any other provision of this service.
- The terms and conditions will be interpreted and controlled according to Nigerian law.
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