First bank has introduced FirstAdvance and Personal Loan Against Salary. Both credit facilities are digital ending solutions for salary earner and payroll customers awaiting payment of their salaries.
The loan package is designed salary earners whose account domicile with first bank and the Loan amount of up to 50% of net monthly income with Tenor is 30 days or next pay day whichever comes first for firstadvance loan and up to 36 months repayment option, subject to retirement age of 60 years and the repayment structure is flexible for Personal Loan Against Salary.
What is FirstAdvance
This credit facility is meant for salary earners whose accounts are domiciled with First Bank and have received regular salaries in the last six months or more. Maximum amount accessible is N500,000.00 subject to 50% of 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 our digital channels: FirstMobile and USSD to bridge immediate cash flow gaps. The Term Loan payable in 30 days or the next payday whichever comes first.
1. Salary account must be domiciled with FirstBank
2. Loan amount of up to 50% of net monthly income.
3. Tenor is 30 days or next pay day [whichever comes first]
4. Maximum single obligor limit of N500,000.00
4. Interest rate @ 2.5%flat collected upfront
5. Management fee @ 1.0% flat
6. Credit Life Insurance @ 0.50%
7. FirstAdvance is an enhanced and improved version of Digital SODA.
8. The loan can be accessed up to three times a day subject to maximum eligible amount
9. The Risk Acceptance Criteria for FirstAdvance is automated.
10. Repayment is taken immediately salary is received, while a lien is placed on unfunded account.
11. All fees, including Interest rate are collected upfront upon disbursement of the loan.
The interest rate for the facility 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 also come with Management Fee of 1% flat
The Credit Life Insurance is 0.5% flat on facility amount ad to be collected upfront.And Value Added Tax (VAT) 7.5% flat of Management fee
Terms and Conditions for FirstAdvance
Interested and eligible customers of the Bank whose salaries accounts have been domiciled with FirstBank for a minimum of Two (2) months, or salary earners willing to move their salary account to the Bank under the following terms & conditions:
1. Receipt of monthly salary (through a preapproved customer database) in the Lender (at least Two (2) months’ salary must be received in the Borrower’s account in the Bank).
2. Completion of Application and Acceptance of offer via FirstBank’s electronic Banking platforms which includes USSD Code *894#, FirstMobile App, ATM and Internet Banking.
3.Automated confirmation on eligibility.
4. Irrevocable salary domiciliation to the Bank. Execution of Irrevocable Undertaking by Employer to domicile employee salary and other allowances and benefits to the Bank and not to remit salary and other allowances, emoluments entitlements and terminal benefits of employees elsewhere without the written consent of the Bank.
5. To maintain a salary account with the Bank during the loan period
6. That the Salary account would be sufficiently funded up-front to absorb interest, commission and other charges
7. To supply all necessary information required by the Bank during the validity of the loan
Security/Support for First advanace loan
1. Irrevocable Domiciliation of Salary and Credit life insurance covering the risk of death/disability, and retrenchment of the Borrower within the tenor of the loan.
2. Employer’s undertaking to domicile salaries and any other allowances, emoluments, entitlements and terminal benefits of employees to the Bank.
Proceeds of monthly salary payment domiciled to the Lender or any BVN linked accounts in any Bank.
Late Payment Penalty
A monthly penal charge of 1% flat on overdue amount, in addition to current rate of interest on the unpaid sum until full repayment will be applicable where facility remains outstanding after expiration.
How to apply for FirstAdvance
Borrower can apply fors Firstadvanace loan in two ways Through FirstMobile App Or
USSD CODE-*894*11# or *894#
What is Personal Loan Against Salary
This a loan package designed to tackle pressing financial needs before payday and borrower Salary Account must be domiciled with FirstBank for the period the facility is in place flexible repayment structure.
With the Personal Loan Against Salary Service:
You get up to 36 months repayment option, subject to retirement age of 60 years and the repayment structure is flexible.
1. A guarantor is not required.
2. The processing time is quick.
3. Equity contribution is not required.
4. Minimum documentation is required.
5. Your Salary Account must be domiciled with FirstBank for the period the facility is in 6. place flexible repayment structure.
How to Apply for First bank Personal Loan Against Salary
To apply for First bank Personal Loan Against Salary you will need the following documents:
1. Application letter
2. Personal Loan Application form
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.
8. Complete the form and submit at the nearest FirstBank branch