First Bank Loan without Collateral for Salary Earners (Apply)

Saint ChineduOctober 1, 2023

Do you want to know about the First Bank loan without collateral for salary earners application, USSD code, interest rate, calculator, repayment, terms and conditions?

If YES, then this is the only post to read.

Getting started…

How to Be Eligible for First Bank Loan

The eligibility requirements for First Bank Loan application include:

Be a Nigerian citizen.
Be at least 21 years old.
Have a valid Bank Verification Number (BVN).
Have a salary account with First Bank.
Have an excellent credit history.
Be able to afford the monthly repayments.

To apply for a First Bank loan, visit a branch or apply online.

Provide some personal information, such as your name, address, and income.

You will also need to provide proof of employment and a copy of your BVN.

Once your application is received, First Bank will assess your eligibility and decide.

If you are approved, the loan will be disbursed in your account.

First Bank Loan Without Collateral

First Bank offers some loans without collateral.

These loans are typically for smaller amounts and have shorter repayment terms.

Some of the First Bank loans that do not require collateral include:

1. FirstCredit

This is a short-term loan that is available to customers who have been banking with First Bank for at least 6 months.

The minimum loan amount is ₦1,000 and the maximum loan amount is ₦300,000.

The interest rate is 8% flat.

2. FirstAdvance

This is a salary loan that is available to employees who have a salary account with First Bank and have received regular salaries in the last two months or more.

The maximum loan amount is ₦1,000,000 and the interest rate is 3% flat.

3. FirstBank Quick Credit

This is a short-term loan that is available to customers who have a salary account with FirstBank.

The minimum loan amount is ₦50,000 and the maximum loan amount is ₦500,000.

The interest rate is 12% flat.

Even though First Bank offers some loans without collateral, these loans typically have higher interest rates than loans that require collateral.

This is because the bank is taking on more risk by lending money with no security.

If you are considering applying for a First Bank loan without collateral, compare the different loan options available to you and choose the one that best suits your needs.

Read the terms and conditions of the loan before you sign any paperwork.

Types of First Bank Loan

First Bank offers a variety of loans to meet the needs of different customers.

Here are the most popular types of First Bank loans:

1. Personal Loan Against Salary

The Personal Loan Against Salary (PLAS), which is targeted at salary account holders, provides finance for individuals in paid employment to meet long-term personal needs e.g. vacations, payment of children’s school fees, rent obligations, furnishing of homes or investment for the future.

Salary account holders who have existing Personal Loan with the bank and have been faithful in their monthly repayment obligation can be availed a Top Up on their existing loan.

Features

With the Personal Loan Against Salary:

You get up to 60 months repayment option, subject to your retirement age.
A guarantor is not required.
The processing time is quick.
Equity contribution is not required.
Minimum documentation is required.
Your Salary Account must be domiciled with FirstBank for the period the facility is in place.
Flexible repayment structure.

Application

To apply for the Personal Loan Against Salary, you will need the following documents:

Download and fill in the Personal Loan Application form online.
Valid copy of acceptable Identification e.g. Driver’s license, International Passport or National Identity card.
Letter of irrevocable domiciliation of salary from your employer undertaking to domicile salary for the duration of the facility.
Complete the form and submit it at the nearest FirstBank branch.

2. FirstAdvance

FirstAdvance is a digital lending solution designed to offer convenient and easy access to cash for payroll customers awaiting payment of their salaries.

The product is meant for salary earners whose accounts are domiciled with FirstBank and have received regular salaries in the last two months or more.

Maximum amount accessible is ₦1,000,000 subject to 50% of net monthly salary.

The eligible amount is calculated after deducting all other loan obligations to the Bank.

Features

Salary account must be domiciled with FirstBank.
Loan amount of up to 50% of net monthly income.
Tenor is 30 days or next pay day [whichever comes first].
Maximum single obligor limit of ₦1,000,000.
Interest rate @ 3% flat, collected upfront.
Management fee @ 1.0% flat.
Credit Life Insurance @ 1.0%
The loan can be accessed up to five times a day, subject to maximum eligible amount.
The Risk Acceptance Criteria for FirstAdvance is automated.
Repayment is taken immediately as salary is received, while a lien is placed on unfunded account.
All fees, including interest rate, are collected upfront upon disbursement of the loan.

Application

Here are the steps to apply for FirstAdvance via the FirstMobile App:

Download the recent FirstMobile App from Google Play Store or Apple Store on your smartphone.
Log on to the FirstMobile App.
Open menu options on the top left-hand side.
Select ‘loans’.
Next, select ‘FirstAdvance’.
Next Menu option shows your eligible amount and the applicable pricing and fees.
Accept the terms and conditions.
Input desired loan amount not more than the eligible amount and your transaction PIN.
Successful, loan is disbursed to your salary account within minutes.
Your account is debited for management fee and VAT, interest rate and insurance as upfront fees and charges.
Upon receipt of salary or 30 days (whichever comes first) your account is debited for principal repayment.

Here are the steps to apply for FirstAdvance via the USSD code:

Dial *894# to connect to FirstBank’s USSD banking.
Select 3 [Get Loans].
The next menu shows your eligible loan amount.
Input the desired amount and send.
Interest rate, management fees and insurance are displayed.
Input five digit transaction PIN to accept terms and conditions.
Loan is disbursed into your salary account within minutes.
Your account is debited for management fee, interest rate, insurance and VAT as upfront fees and charges.
Upon receipt of salary or 30 days (whichever comes first) your account is debited for principal repayment.

3. FirstCredit

FirstCredit is a digital lending solution designed to offer you quick and simple loans to fund your transactions.

Loans can be accessed from anywhere without visiting the Bank.

No documentation or collateral is required.

All the customer need is a mobile phone or tablet.

Features

Customer’s account must have been operational in FirstBank for at least 6 months.
Customer must be linked to a valid BVN.
Customers must have correctly updated phone numbers.
Customer must have positive credit record with Credit Bureaus.
Minimum Loan Amount: ₦1,000.
Maximum Loan Amount: ₦300,000.
Loan Tenor: Maximum of 30 days.
Interest Rate: 8% flat.
Insurance: 5% per transaction.
A penal charge of 1% monthly and daily interest of 0.3% applies upon default.
Interest on the disbursed amount will be taken upfront on loan disbursal.
Insurance fee is also taken upfront on loan disbursal.

Benefits

Easy and convenient access to loans to meet needs.
Quick loan request and disbursal.
No physical documentation required.
No collateral required.
No hidden fees.

Application

Dial *894#
Select Loans.
Select FirstCredit.
Select get new loan.
Select the account number with which you want to apply for the loan.
Grant data usage consent and accept terms and conditions.
You are presented with 4 loan amount options.
Choose your desired loan amount.
Loan is disbursed in your account.
Complete the ONLINE DATA Consent Statement (FirstCredit NanoLending).

4. Personal Home Loans

The Personal Home Loan product gives employees the opportunity to gain and own residential properties with ease.

The product is also available for couples as Joint Mortgage.

Features

Available for individuals in paid employment.
Maximum tenor is 20 years, subject to retirement age.
Simplified documentation.
Minimum of 20% equity contribution.
Competitive interest rates.
Property to be financed must be residential in First Bank approved locations and not for commercial purpose..
Your salary account must be domiciled with FirstBank for the period the facility is in place.

Required Documents

Vendor’s offer letter.
Copy of the title documents to the property (ownership must be in the vendor’s name).
Copy of the approved building plan.
Personal home loan application form.
Letter for irrevocable domiciliation of salary for the duration of the facility.

Application

To apply for the First Bank Personal Home Loan, follow these steps:

Download the Home Loan Application Form online.
Complete the form and submit it at the nearest FirstBank branch.

5. Airtime Loan

Airtime Loan is a digital lending service that allows qualifying customers to access airtime effortlessly from anywhere.

Features

Customer’s account must have been operational in FirstBank for at least 6 months.
Customer must be linked to a valid BVN.
Customers must have correctly updated phone numbers.
Customer must have positive credit record with Credit Bureaus.
Minimum Loan Amount: ₦200.
Maximum Loan Amount: ₦5,000.
Loan Tenor: Maximum of 7 days.
Interest Rate: 12.5% flat.
Insurance: 2.5% per transaction. A penal charge of 1% on the 8th day applies upon default.
Interest on the disbursed amount will be taken upfront on loan disbursal.
Insurance fee is also taken upfront on loan disbursal.

Benefits

Uninterrupted connectivity.
No hidden charges.
Quick loan requests and disbursals.
No collateral is required.
No paperwork is required.

Application

Dial *894*11#
Select ‘Airtime/Data loan.’
Select ‘Get loan’.
Select the account number with which you want to apply for the loan.
Enter 1 for self or desired phone number.
Choose your desired loan amount.
Grant data usage consent and accept terms and conditions.
Airtime is disbursed to your desired phone number.

6. Automobile Loan

The Automobile Loan product (Auto Loan) gives salaried individuals in paid employment the opportunity to gain brand new vehicles from reputable vendors with a flexible repayment plan over a period.

Features

Maximum loan amount of ₦20million.
Up to 48 months tenor (four years).
Equity contribution is 30% of the invoice value.
Finance is available only for brand new vehicles.
Open to salaried income person whose salary is domiciled in First Bank or who wants to move salary account to First Bank.
Flexible repayment structure.
Highly competitive interest rates.
Access to a wide range of vehicle brands and models.

Required Documents

Auto Loan application form.
Proforma Invoice.
Valid copy of acceptable Identification e.g. Driver’s license, International Passport or National Identity card.
Letter of irrevocable domiciliation of salary for the duration of the facility.

Application

To apply for the First Bank Auto loan, follow these steps:

Download the Auto Loan Application Form online.
Complete the form and submit it at the nearest FirstBank branch.

How to Repay First Bank Loan

Here are the ways to repay a First Bank loan:

Pay in person at a First Bank branch. When you pay in person, you will need to bring your loan account number and a valid ID.
Pay through the First Bank mobile app. To pay through the app, you will need to log in to your account and select the “Loans” tab.
Pay through the First Bank USSD code. To pay through the USSD code, dial *894*11# and follow the prompts.
Pay through a bank transfer. You can also pay your First Bank loan through a bank transfer. To do this, you will need to know the bank account number of the First Bank account that your loan is linked to.

Repaying your First Bank loan on time and in full will help you avoid late payment fees, damage your credit score, and get the most out of your loan.

Terms and Conditions

The terms and conditions of a First Bank loan will vary depending on the type of loan and your eligibility.

Interest rate: The interest rate on a First Bank loan will typically be higher than the interest rate on a bank deposit. This is because the bank is taking on more risk by lending you money.
Repayment period: The repayment period for a First Bank loan will also vary depending on the type of loan. However, it is usually between 12 and 60 months.
Early repayment penalty: Some First Bank loans may have an early repayment penalty. This means that you may have to pay a fee if you repay the loan before the end of the repayment period.
Late payment fees: If you miss a payment on your First Bank loan, you may be charged a late payment fee. This fee is usually a percentage of the outstanding balance.
Default: If you cannot make your loan payments for a period, your loan may default. This means that the bank may take legal action to recover the money you owe.

Read the terms and conditions of your First Bank loan carefully before you sign any paperwork.

This will help you understand your obligations and what you can expect if you default on the loan.