Nigeria is a developing nation with an increasing number of youths pursuing quality education abroad. Studying abroad can be a life-altering experience that leads to improved employment opportunities, personal development, and a broader worldview. However, it can be an expensive endeavor, and many Nigerian students struggle to secure the funds necessary to finance their education abroad.
In this article, Finwealthonline.com will discuss how to obtain an international student loan in Nigeria. We will investigate the alternatives available to students, the requirements, and the advantages of obtaining a student loan.
Options Available for Students
Students in Nigeria who desire to secure a student loan to study abroad have a number of options. Among the options available are:
Government-sponsored loans The Nigerian government offers a variety of loan programs for students who wish to study abroad. The Ministry of Education offers these loans, which are often granted based on merit and financial need.
Numerous private financial institutions offer pupils who wish to study abroad loans. These loans frequently require collateral and may carry a higher interest rate than government-backed loans.
Scholarship programs are an excellent method to finance an international education. Scholarships are typically granted based on academic achievement or other criteria and do not require repayment.
Requirements
To qualify for a student loan in Nigeria, you must meet certain requirements. Among these prerequisites are:
The majority of student loans are granted on the basis of academic merit. In order to be considered for a loan, you must have a strong academic record.
Numerous loan programs are designed to assist pupils from low-income families. To qualify for a loan, you may be required to provide evidence of your financial need.
When applying for a private loan, you may be required to provide collateral, such as a home or vehicle, to secure the loan.
Advantages of Obtaining a Student Loan
The advantages of taking out a student loan to study abroad include:
A degree from a foreign university can offer you an advantage on the job market and increase your employment opportunities.
Personal development: Studying abroad can be a life-altering experience that helps you acquire new skills and broaden your worldview.
Opportunities for networking: Studying abroad can help you establish a network of useful contacts for your future career.
Statistics
According to the UNESCO Institute of Statistics, approximately 1.5 million Nigerian students were studying abroad in 2019. United States, United Kingdom, Canada, Ghana, and South Africa are the most popular destinations for Nigerian students.
The Nigerian government launched the Bilateral Education Agreement (BEA) scholarship program in 2019 to support students who wish to study abroad. The program offers funding for undergraduate, graduate, and doctoral studies in a variety of disciplines.
According to the Nigerian Bureau of Statistics, the total value of loans disbursed by Nigerian institutions in 2020 was N2.4 trillion, with only 1.4% of disbursed loans going to the education sector.
History of Student Loan
Many Nigerian parents view education as a means of elevating their children out of poverty. The government of Nigeria established the Nigerian Students Loans Board in 1972. This organization was to provide loans to qualified Nigerians for undergraduate and graduate education in Nigeria and abroad.
According to a jstor.org report, this Board disbursed N46 million between 1973 and 1991. Due to the difficulty in recovering the loans, the government has substituted the Board with the “Nigerian Education Bank.”
This new organization provides educational advisory services and administers the disbursement of loans for professional studies such as Architecture, Law, Medicine, and Accounting, among other responsibilities.
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How to obtain a student loan without collateral in Nigeria
Follow these methods to obtain a Nigerian Student Loan:
Determine how much is required.
To obtain a student loan, you must know how much money you need, where to get it, and what paperwork is required for processing the loan.
Determine Required Documents
For a student loan in Nigeria, you must collect the documents listed below. This is primarily for Nigeria Education Bank loans; for other lenders, continue perusing the articles. They consist of:
- Names, ages, birth certificates, marital standing, and sexual orientation.
- Academic credentials – letter of admission
- A form of identification, three recent passport photos, and a copy of the Institution’s fee receipt are required.
- Course of study, duration, beginning and ending dates.
- Bank account and processing fee deposit of N2,000 (for Nigeria Education bank loan)
- Provide the name of your institution’s financier (which is usually Nigeria Education bank.)
- Please be aware that requirements vary between lenders.
Examine the Terms and Conditions
Determine the loan’s quantity, purpose, conditions, and repayment terms.
Loan Quantity: The price range is between N24,000 and N32,000. Or any sum that is higher than this
Purpose: Expenses for housing, books, and other school-related costs
Length of Loan: This varies based on the number of years for each applicant’s Course.
Repayment: Typically, two years after concluding one’s education
The majority of these depend on the lender.
Contact a lender.
Choose a commercial bank to visit. These institutions are partners of the Nigerian education bank. Find out the requirements for opening a bank account and any other information required to obtain an unsecured student loan in Nigeria.
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Next, establish a bank account and deposit N2,000 to cover the processing fee for the student loan. If you want the Nigerian Education bank loan, you must do so.
- Submit your Student Loan application
- Collect the loan application form from the Dean of Student Affairs of your university and fill it out.
- Include all required documentation and make all payments
- Submit your application to the Student Loans Taskforce in the office of the Dean.
- Wait for student loan application processing and approval
- Wait for the Nigeria Students Loans Board’s response. Throughout processing:
The Operations Unit of the Loans Board would contact you via email, SMS, or phone if the application form was not correctly filled out.
The Ministry of Education will announce successful applicants in a national newspaper. In addition to having your name posted on the Ministry’s website, you will also receive a letter informing you of the amount allocated to you.
You will be assigned a loan identification number, provided with identification cards, and the loan proceeds will be transmitted to the Nigerian education bank for disbursement to your bank.
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Conclusion
Obtaining a student loan to study in Nigeria abroad can be difficult, but it is not impossible. Government-sponsored loans, private loans, and scholarship programs are among the options available to students. Certain requirements, such as academic excellence and financial need, must be met in order to qualify for a loan.
The advantages of obtaining a student loan include increased employment opportunities, personal development, and networking possibilities.
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FAQ
How to get student loan in Nigeria to study abroad?
Getting a student loan in Nigeria to study abroad can be a challenging task. You can apply for a student loan from financial institutions such as banks or private organizations that offer educational loans. However, it’s important to note that the eligibility criteria, interest rates, and repayment terms of student loans in Nigeria may vary from lender to lender. Some lenders may require a collateral or a guarantor, and you may need to provide documentation such as an admission letter, academic transcripts, and a study plan to prove your eligibility for the loan.
Can I get a student loan to study abroad?
Yes, you can get a student loan to study abroad, but it will depend on the country you want to study in and the financial institution or organization you approach for the loan. Many countries offer student loan programs to support their citizens or residents who wish to study abroad, and there are also private organizations that provide international student loans. However, the eligibility criteria and terms of the loan may vary, and you may need to meet specific requirements to qualify for the loan.
How to apply for student loan to study abroad?
To apply for a student loan to study abroad, you should research the available options and eligibility criteria for the loan. You can approach banks, financial institutions, or private organizations that provide educational loans for international students. You will need to submit documentation such as an admission letter, academic transcripts, and a study plan to support your loan application. You may also need to provide a guarantor or collateral, depending on the lender’s requirements. Make sure you understand the terms and conditions of the loan before applying.
How can I get education loan for studying abroad?
You can get an education loan for studying abroad by applying to financial institutions, banks, or private organizations that offer international student loans. You may need to provide documentation such as an admission letter, academic transcripts, and a study plan to support your loan application. The eligibility criteria, interest rates, and repayment terms may vary, so it’s important to research and compare the different options available to find the best one for your needs.
Can I get a student loan for international study?
Yes, you can get a student loan for international study. Many countries offer student loan programs to support their citizens or residents who wish to study abroad, and there are also private organizations that provide international student loans. However, the eligibility criteria and terms of the loan may vary, and you may need to meet specific requirements to qualify for the loan.
How much education loan can I get to study abroad?
The amount of education loan you can get to study abroad will depend on several factors, such as your chosen course of study, the country you wish to study in, and the financial institution or organization providing the loan. Some lenders may offer full funding, while others may offer partial funding for your education expenses. It’s essential to research and compare the different options available to find the best one for your needs and financial situation.