Today we’ll be sharing first bank loans and their interest rates. But firstly, we all know that loans can be a real life saver when you need some extra funds, whether it’s for personal reasons, emergencies, investments, or anything else. But it’s important to know how the interest rates work before you take any loan from any bank at all. So let’s break down the interest rates that First Bank offers.
First Bank is one of the oldest, most popular, and most established banks in Nigeria. They provide different types of loans to attend to your financial needs. Now, let’s explain what interest is and the details of the interest rates for these loans. Interest is the amount you pay for collecting a loan.
First Bank Interest Rate on Loan
Let’s get right into it and see what interest rates First Bank offers for different types of loans:
First Bank’s FirstCredit loan is a loan offered to customers who finish or go through with transactions without having to go to the bank, it has an interest rate of 8% flat and an insurance fee of 5% per transaction. So, if you’re considering a FirstCredit loan, take note of all these below;
This loan is offered as an easy way for customers who are waiting for their salaries to be paid to get money in hand before the salaries are paid. It comes with an interest rate of 3% flat per month, a management fee of 1% flat, and credit life insurance of 1%. It I also good to know that this rate is subject to change due to various reasons that may arise whether it is policies, or competition of rates between banks so when you are thinking of taking a loan, check and be sure of all important information, especially the interest rates.
- Agent Credit
This is the type of loan offered to First Bank agents (those who help provide easy access to money in the most remote areas) to take care of their financial needs, especially through their accounts, they can get this by visiting the nearest branch to them.The interest rate is at 0.3% flat on the given amount, and there’s an insurance fee of 0.1% per transaction. Additionally, there’s Keyman Insurance of N1,000 per year. You will need to know all these to get this type of loan.
- Personal Loan Against Salary
This type of loan is given to customerswho are salary earners so they can meet their long-term needs like vacations, children’s school fees, rent, renovating or furnishing homes, and so on. The interest is not specified but when applying for this loan, the bank will explain it all in detail.
First Trader Solutions
This is a short-term overdraft(meaning to withdraw more than our available balance) kind of loan given to traders whostay in pre-approved markets or own supermarkets and sell fast-moving goods (like candles, cosmetics, foodstuffs, and so on) to be able to do their business without any monetary issues. There two types of this First Trader Solution Loan, which are:
- Main First Trader Solutions (MFTS): This one comes with a repayment time frame of 180 days (6 months) and the interest rate is at 0.5% of the loan amount given to be paid every day for the duration of the time frame.
- Exceptional First Trader Solutions (EFTS): This one comes with a repayment time frame of 90 days (3 months) and the interest rate is at 1% of the loan amount given to be paid back every day for the duration of the time frame
- First Gem Funds
This is a gender-supporting loan that is offered to women who own Micro Small and Medium Sized Enterprises (MSMEs) to take care of their everyday financial demands in the business and also help them get important machines or properties. The interest rate is at 9% per year, management fees of 0.1% flat, and Keyman insurance of 0.1% (both the management fees and the Keyman insurance come once).
First Bank Interest Rate on Loan Calculator
Now that you know what the interest rates look like, I’m sure you would also be worried about how to calculate the complete amount for a loan interest. First Bank has made things easy for you by creating a loan calculator and making it available for your use on their official website. So now you can just go to their official website and make use of this calculator. Here’s how to use the loan calculator:
Go to the Loan Calculator
Start by visiting First Bank’s official website and look for their loan calculator. This is an easy-to-use tool to estimate your monthly payments and the total repayment amount.
Input Loan Details
Once you’re on the loan calculator page, you’ll need to provide the following information:
- Loan Amount (₦): This is the amount you wish to borrow.
- Payment Frequency: Choose between weekly and monthly.
- Interest Rate (%): Enter the interest rate per year for the specific type of loan product.
After filling in the details, click on the “Calculate” button. The loan calculator will then provide you with this information:
- Total Repayment (Principal + Interest): This is the total amount you’ll repay over the time frame given for the loan repayment, including the principal(the main loan) amount and the interest.
- Monthly Payment: This shows you the amount you’ll need to pay every month to clear your loan.
This tool can help you to know the responsibility of taking a loan and please do remember that the terms and conditions of these loans or other types of loans can change with time due to different reasons.
So when considering taking a loan try to check for any changes or know the exact terms and conditions. You can know this by going to the First Bank official website or getting touch with their customer care center.
How To Apply For Loan On First Bank
There are several ways to apply, they are:
- Dial *894#, then select 3 (Get loan) or dial *894*11#
- The next prompt will show how much you can get, you then type in the amount you want to get then click send.
- On the next prompt, there will be a list of the interest rate, management fees, and insurance fees, and then you will type in your transaction pin to accept the terms and conditions given.
- The loan will then be sent to your account and the interest rate, management fees, insurance fees, and VAT will be deducted from your account as first payments.
Using the FirstMobile App:
- Download the FirstMobile App from your Play Store if you don’t have it and then open it.
- Login on the App, then on the top left corner of the display open the menu option
- Then click on “Loans”, and then pick your preferred choice of loan. After which the next display will show you how much you can get and the interest and fees that come with it.
- Then accept the terms and conditions that will be shown next, after this, you will type in the amount you need and it must not be more than what they offered.
- Then type in your transaction PIN and the loan will be sent to your account, after which the interest rate, management fee, insurance fees, and VAT will be deducted.
First Bank offers different types of loans with different interest rates. Whether you’re considering FirstCredit, FirstAdvance, Agent Credit, or other loan options, understanding the interest rates is important. If you’re planning to take out a loan, First Bank’s loan calculator can assist you in knowing how much your monthly payments are and the total repayment amount. Make sure you’re comfortable with the loan terms and that it balances with your financial plans and needs.