First and foremost, let’s get this straight. Nigeria is not one of the easiest places to get a bank loan in the world. Meanwhile, we can’t heap all the blames on the banks. However, in this post we will give a full guide on how to get a loan from first bank. Your first bank loan is just a step away once you apply these simple tips.
We understand that one challenge most businesses and even individuals face is finance. You may never understand the situation fully until you have a dire emergency days before payday. Also, a lot of ideas die even before they are tried due to lack of funds. Most times, the only available option is an external financial assistance in advance, with a plan to repay in future.
So, Why first bank?
First Bank is unarguably one of the best financial institutions, not just in Nigeria, but the entire Africa. First bank is one of the oldest financial institutions in Nigeria. With the experience gathered over the years through consistent good practice, FBN is indeed dependable.
Disclaimer: Please note, we have NOT been endorsed by First bank or any of its affiliates and/or agents for any sort of promotion. This article is for research and informational purposes only.
A Review of First Bank
First Bank of Nigeria limited began operation in 1894 in what was then the British colony of Nigeria as bank of British west Africa. The Bank has had several name changes between 1965 to 2012. Since its listing on the Nigerian stock exchange in 1971, FBN has since grown to become one of the most respected and service focused banks in Nigeria.
First Bank currently has over 750 business locations across the African continent, the United Kingdom and representative offices in Abu Dhabi, Beijing and Johannesburg. It has its Headquarters at 35 Marina, Lagos, Nigeria.
Pros and Cons of Getting a Bank Loan
Loans Meaning –
A loan is an agreement for a temporary transfer of cash from the lender to the borrower who promises to return it according to the agreed terms.
Loans may look very enticing, but in some situations may not be necessary. It is definitely a great idea to boost your capital base. However, basic accounting calls it a liability. So, here are the immediate pros and cons you should have in mind before applying for a loan.
On the positive side, the gains associated with getting a bank loan are many. Loans actually boost your liquid capital base for investment. They make available funds to settle immediate needs, even before pay-day.
On the other hand, the most common challenge associated with loans is the burdening repayment conditions. By this, you may end up enslaving yourself as some loans carry very strict conditions.
Categories of Loans
For the sake of this post, we will consider loans in two broad categories, namely:
- Personal Loan
- Business Loan
1. Personal Loan
As the name implies, this category focuses on the personal financial needs of customers. Note however that GT bank lays preference on employees who have accounts with the bank. Some of the areas the bank cover are listed below:
- Payday advance
- School fees advance / Student loans
- Salary finance
- Home loans (Mortgage)
- Vehicle finance
- Computer advance
2. Business loan
First bank offers loan facilities to a variety of legitimate businesses, from start-ups to existing concerns. Do well to reach out to your account officer to find out how suitable your business is. They have great facilities for SMEs, Fixed Capital expansion, Overdrafts and so on.
Tips To Get A Loan
To avoid a waste of your time, I will summarize, and present this section in very short lines. However, for further explanation or consultation, please do well to CONTACT US HERE
- Maintain an account with the bank. If the bank manages your funds, they will definitely know your “threshold”, as well as your financial reputation.
- Have a definite amount and purpose in mind.
- Clearly draw out a credible repayment plan. The bank won’t part with their fortune until they are sure of your capacity and commitment to pay back.
- For start-ups, present a reasonable business plan. No one invests in a line he is not even sure of its realization.
- Start something with the little funds available. Your commitment to your dream could spur the bank to bank on you.
- Maintain a good financial record. Loans to some extent are given on trust. A bad debtor is generally considered unworthy of a loan. Nevertheless, he may not continue in his ‘usual’ ways.
- Get close to your account officer. It is better for you if you have a personal relationship with your Account Officer. He will get to know your status, and recommend the best possible facility to fit your need.
- Ensure you go for not more than a considerable percentage of your annual income.
- Provide every necessary document.
- Offer an appreciating collateral or a dependable guarantor.
How to Apply for First Bank Loan
First Bank has made its loan application process quite easy and stress-free. You could complete the process online, or by walking into any nearby branch. Simply visit the official website for more information.
Finally, please leave any question or contribution in the comment section.