How to Get a Loan as a Student in Nigeria

It is no news that the educational system and curriculum in this country do not allow students to work and school at the same time. And even when they manage to do this against all odds, their wages are usually meagre, with very aggressive bosses that want them on an 8am – 8pm schedule most days of the week. This causes them to have little or no time to deal with school activities; attending classes, copying notes, going for practical, studying and taking tests. The implication of this on the education of such students is that, they fail their final exams and may even end up withdrawn from college.

As the economy of the country continually declines, with parents of children lacking the financial capacity to cater for their entire households, some college students have been left with the duty to take care of themselves.

How then can the average Nigerian student get that extra cash they need?

Normally, I would say, pick up a side hustle, or in other words, delve into entrepreneurship!

However, you would need money to actually start up a business, whether big or small. I also know that getting financial aid might seem impossible during this period of drought.

Which is why getting a loan from student friendly money loaners or lenders is an option to explore. But not everyone can go to banks to acquire loans since they cannot meet the requirements. Fortunately for students, there are instant loan Apps available on Google play store for download, that you can acquire a small loan from to be paid back conveniently. 

Benefits of Taking a Loan as a Student

Before you freak out about the idea of taking a loan, remember you can acquire a loan to enable you solve some of your financial problems like;

  • Pay your school fees: Your parents might have promised to send you money for school fees, but they haven’t, and exams are fast approaching. No school allows students to write exams without school fees payment. So, you need to take a loan.
  • Buy textbooks: Every student need textbook. Without textbooks you wouldn’t be able to prepare properly for a test or an exam.
  • Secure accommodation: You need money to pay for your hostel space or rent an apartment and if you are not able to raise the money soon, you might be homeless. Taking a loan will help your secure accommodation.
  • Start a business or side hustle: Do you intend starting a business to facilitate a constant flow of income and you do not have a means of getting money for it? Consider taking a loan.
  • Pay medical bills: Nobody plans to be sick and so, we often do not include it in our budget and plans. It is okay to take a loan when you have no money to take care of your medical bills.

These loans can be paid back when you receive your monthly allowance from home or as your business begins reaping profits. Some examples of these instant loan Apps are; PalmCredit, Aella Credit, FairMoney, QuickCheck, KiaKia and Branch.

I would be explaining to you how you can lend money from these instant loan apps using Branch as a case study. 

Getting a Loan from Branch App

Branch is an online student friendly money lender in Nigeria that offers a no collateral loan. So, no need worrying about what properties you would need to use as collateral.

Thank heavens no collateral is needed! I mean, how many students have properties?

Branch gives loans that range from 1,000 Naira to 200,000 with a loan repayment term of 4 weeks – 15months.

One of the good things about branch loan is that the requirements needed to qualify for the loan are easy to meet and you do not need to fill a lengthy form.

What then is needed to qualify you for a loan offer by branch?

A few things friend! They include;

How does Branch determine how much loan you are qualified to be offered?

Branch uses the information on your mobile phone number to determine your credit score. This means that, to get a loan from Branch you need to maintain a good credit score and put up only your legal details in your applications. Using the legal details or information of your friends or a family member might put you at risk of getting declined the loan because that family member or friend might not have a good “credit score”.

How do you apply for Branch loan?

It is a very simple process. All you need to have is good internet connection and a smart device. Once you have access to these things you can follow the steps below.

  • First, you need to create a Branch account. You do this by downloading the Branch App on Google play store. After downloading the App, you would be required to fill the onscreen information carefully.
  • Once you have a Branch account, click on the icon on the top left of the corner of your smart device that reads “My Loans”. Clicking this icon would enable you see your loan offers.
  • Branch will then display your loan offer based on your credit score.
  • If you are satisfied with Branch’s loan offer, click on the bubble icon containing your loan amount.
  • Branch would require you to submit the bank account where you wish to receive the loan.
  • Next, click on “Request this loan”.
  • Then, click on “Apply” to apply for branch loan.
  • In a few minutes, your account would be credited with your loan.

How can you repay Branch loan?

Branch won’t come knocking on your door or telling your neighbors that you owe them money and you don’t need to go across a city to repay them. They have provided different convenient methods to enable you repay Branch loans. They are;

  • Repayment by means of ATM debit card.
  • Repayment by cash.
  • Available to only GTBank users, repayment via USSD in-app.

It is also possible for you to set an auto-debit feature in your Branch loan App. This means that you are giving Branch the authority to automatically debit or repay your loan from the balance left in your bank account when it is due.

To repay by cash; walk into any GTBank nearest to you, pick a deposit slip and fill according to the information below;

  • Account Name – BRANCH INC.
  • Depositor’s Name – Legal name used to register bank account and branch loan account.
  • Depositor’s phone number – The phone number you used to register bank account and branch loan account.
  • Amount – Fill the amount you want to repay.
  • Collect a signed and stamped copy of your receipt for reference purposes.

Note that repaying by cash does not require you to fill in an account number on the deposit slip. However, you would be required to pay a service fee of 100 Naira.

Is there any Interest Attached to Branch Loan?

Branch loan interest rate is determined by a lot of factors such as; credit score and payment history. However, the loan interest is usually 14% – 28%.

Your branch loan interest is calculated by;

  • Late \ Rollover Fees: None
  • Interest Range: 14% – 28%
  • Equivalent Monthly Interest: 1% – 21%
  • Equivalent APR: 15% – 260%

Advantages of taking student friendly loans

  • Flexible repayment options.
  • Maximum tenor of 12 months.
  • Flexible conditions.
  • No guarantor required.
  • No collateral required.
  • Reduced interest rate.

It is important to note, that not all instant loan apps share the same parameters and guidelines instituted by BRANCH. It is important to know the terms and conditions attached to a loan before requesting for one.

Taking a loan as a student is a good way to help manage your financial crisis in school especially when there are delays in receiving your monthly allowance and you need to do some very important things with cash. It frees your mind from financial worries and gives you enough room to focus on your studies.