First Bank Salary Loans for Account Holders: A Comprehensive Guide
First Bank has introduced Salary Loans for account holders.
This personal loan is designed against salary and comprises three loan types: FirstAdvance loan, Agent Credit, and Personal Loan Against Salary.
In this article, we’ll explore these loan packages offered by First Bank to help you choose the best credit facility that suits your financial needs.
1. First Advance Salary Loan
The First Advance loan is a digital lending solution designed to offer convenient and easy access to cash for payroll customers awaiting payment of their salaries.
Customers whose salary accounts are domiciled with First Bank and have received regular salaries in the last six months or more can apply for the loan facility.
Eligible borrowers can get a maximum amount accessible of up to N500,000.00, subject to 50% of their net average three months salary, whichever is lower.
The eligible amount is calculated after deducting all other loan obligations to the bank. This product can be accessed via digital channels, namely FirstMobile and USSD.
The fund will be available for utilization only upon satisfactory compliance with the conditions precedent to drawdown as may be prescribed by the Bank.
Requirements to Apply for First Bank First Advance Salary Loan
To qualify for First Bank First Advance Salary Loan, you must meet the following criteria:
1. Your salary account must be domiciled with First Bank for a minimum of two (2) months, or salary earners willing to move their salary account to the Bank.
The interest rate of First Advance is 2.5% flat, per month, which shall be subject to review from time to time in line with the prevailing money market condition.
It has a management fee of 1% flat and Credit Life Insurance of 0.5% flat on the facility amount and is collected upfront.
The Value Added Tax (VAT) of First Bank First Advance Salary Loan is 7.5% flat of Management fee.
It also comes with a monthly penal charge of 1% flat on the overdue amount when you fail to pay before your due date.
The borrower shall maintain a credit life insurance policy against loss of life and such other risks as the Bank may from time to time consider necessary in an Insurance Company approved by the Bank.
The borrower shall duly pay all premiums for keeping such insurance.
The Bank’s interest as first loss payee must be duly endorsed on the insurance policy.
The term loan is payable in 30 days or the date of the next salary payment, whichever comes first.
First Bank First Advance Salary Loan has the following features:
1. Salary account must be domiciled with First Bank
2. Loan amount of up to 50% of net monthly income.
3. Tenor is 30 days or next payday [whichever comes first]
4. Maximum single obligor limit of N500,000.00
5. The loan can be accessed up to three times a day subject to a maximum eligible amount
6. The Risk Acceptance Criteria for First Advance is automated.
7. Repayment is taken immediately salary is received, while a lien is placed on the unfunded account.
8. All fees, including the interest rate, are collected upfront upon disbursement of the loan.
9. Interest rate @ 2.5% flat collected upfront
10. Management fee @ 1.0% flat
11. Credit Life Insurance @ 0.50%
How to Apply
Borrowers can apply for the First Advance through First Mobile App Or USSD CODE-*894*11# or *894#
2. Personal Loan Against Salary
Are you facing pressing financial needs before payday?
The First Bank Personal Loan Against Salary is here to help.
This loan option allows borrowers to get up to 36 months repayment option, subject to the retirement age of 60 years.
The best part is, the repayment structure is flexible to suit your needs.
Features of First Bank Personal Loan Against Salary
1. No guarantor is required.
2. Quick processing time.
3. No equity contribution is required.
4. Minimal documentation is needed.
5. Your salary account must be domiciled with First Bank for the duration of the facility.
6. Flexible repayment structure.
How to Apply for Personal Loan Against Salary
To apply for the Personal Loan Against Salary, you will need the following documents:
1. Application letter
2. Personal Loan Application form
3. Pay slip
4. Statement of accounts.
5. Applicant’s letter of total emolument.
6. Confirmation of applicant’s employer on FBN approved list.
7. Letter of irrevocable domiciliation of salary for the duration of the facility.
Once you have all the necessary documents, complete the form and submit it at the nearest First Bank branch.
3. First Bank Agent Credit
If you’re a Firstmonie agent and have been active on the Bank’s Agent Network for a minimum of three months, the First Bank Agent Credit is designed to provide cash for you to solve liquidity challenges resulting from depleted account balances, even when you have physical cash at hand.
The best part is, you can access this fund, pending cash lodgment at the nearest branch.
You can get up to N1 million to fund more transactions.
Features of First Bank Agent Credit
1. The Firstmonie Agent Credit Loan amount is 25% of the average daily credit turnover for a period of three months, subject to a maximum loan amount of N1 million.
2. Tenor is 24 hours during the weekdays and a maximum of 72 hours or the next working day during the weekends and public holidays.
3. Agent must have been in an account relationship with FirstBank for a minimum of 3 months.
4. Interest rate @ 0.3% flat on the disbursed amount.
5. Keyman Insurance of N1,000 per annum.
6. Minimum loan amount is N20,000.
7. Positive credit check.
8. Satisfactory KYC report.
Benefits of First Bank Agent Credit
1. Get up to N1 million to fund more transactions.
2. Access to funds before cash lodgment at the branch.
3. Available for use every day, including peak periods (weekdays, weekends, and public holidays).
4. Business expansion and increase in income.
How to Apply for First Bank Agent Credit
If you’re a Firstmonie Agent, you can apply for the Agent Credit loan through the Firstmonie App.
Simply click on the link and follow the prompts.
In conclusion, if you need quick cash before payday or you’re a Firstmonie agent looking to solve liquidity challenges, the First Bank Personal Loan Against Salary and Agent Credit loans are excellent options to consider.
With minimal documentation, flexible repayment structure, and quick processing time, you can get the funds you need to address your financial needs.
Apply today and take advantage of these loan options!