Conditions for getting school fees advance from banks

Forum 7 years ago

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.