Conditions for getting school fees advance from banks

 

Paying children’s school fees is the obligation of every parent; and settling this timely will save the students a lot of embarrassment from their school authorities.

When too many needs are competing for little resources available with parents, it is adviseable for them to apply for school fees advance from their banks.

This is one of the products available in many Nigerian banks; it provides short-term credit for the payment of students’ fees.

A major requirement to enjoy this facility is that the parent must have his salary account domiciled in the bank.

• Benefits

One of the benefits of this facility is that it provides a short-term loan. The parent usually has less than six months to repay the loan.

Different banks have the maximum amount they can give to any individual. Parents can also apply for more than one student, depending on the maximum number of children the bank allows.

When the loan is granted, the parent will have to repay the loan from his salary account with interest. The total amount he is usually allowed to pay monthly is not expected to exceed half of his monthly emolument.

After the parent has finished repaying the loan, he can ask for another loan to be used for the same purpose.

In some cases, the parent will be expected to have credit insurance against death, permanent disability or loss of job. This is to make sure that the insurance company pays the loan if the parent is unable to pay back.

• Requirements

A parent will have to fill an application form requesting for a school fees advance from the bank, which should be submitted together with an undertaking form signed by the employer.

The parent will also provide the bank with the bill stating the amount and evidence that his salary is domiciled in the bank. This is to ensure that the money is not diverted for other usage but specifically for what it was obtained.

Those who benefit from this facility must be working in either the organised private sector or public sector.

• Funds

Depending on the bank, there are minimum and maximum amounts that parents can apply for. While the minimum in some banks is as low as N40,000, a parent can apply for up to N1m.

Also, the parent may not have to be a long standing customer with the bank. As long as at least one month salary has been paid in the bank, a parent can apply for the loan.

If the parent has an existing loan in the bank, this will not prevent the bank from granting the new loan as long as the repayment of all the loans will not exceed a certain percentage of the monthly emolument.

It is also worthy of note that the bank will not give the parent the cash. The fees will be paid directly into the school’s bank account or a draft will be issued in the name of the school.

• Minimum salary

A parent must be earning a certain minimum salary as stipulated by the bank before he can apply. In some banks, the salary may be as low as N20,000 per month.

Also, the parent must have been working for a certain number of months and a confirmed employee of his organisation.