Today, we’re talking about loans from First Bank and their interest rates. Loans can really help when you need extra money for personal reasons, emergencies, or investments. But it’s important to understand how interest rates work before borrowing from any bank. Let’s look at the First Bank interest rate on loan.
First Bank is one of Nigeria’s oldest and most well known banks, offering various types of loans to meet your financial needs. Now, let’s talk about interest and the interest rates for these loans. Interest is the extra money you pay when you borrow a loan.
First Bank Interest Rate on Loan
Let’s look at first bank interest rate on different types of loan.
FirstCredit
This loan is for customers who complete transactions without visiting the bank. It has an 8% flat interest rate and a 5% insurance fee per transaction. If you’re considering taking this loan, take note of the following below;
FirstAdvance
This loan is designed for customers awaiting their salaries. It has a 3% flat interest rate per month, a 1% flat management fee, and a 1% credit life insurance fee. Keep in mind that these rates may change due to factors like policies or competition among banks, so always double check all important information, especially interest rates, before taking out a loan.
Agent Credit
This loan is for First Bank agents who provide access to money in remote areas. They can apply for it at their nearest branch. The interest rate is 0.3% flat on the loan amount, with an insurance fee of 0.1% per transaction. Additionally, there’s a Keyman Insurance fee of N1,000 per year.
Personal Loan Against Salary
This loan is for customers who receive a salary. It helps cover long term needs like vacations, school fees, rent, or home renovations. The interest rate isn’t specified, but the bank will provide detailed information when you apply for the loan.
First Trader Solutions
This short term overdraft is for traders in pre-approved markets or supermarket owners selling fast-moving goods like candles, cosmetics, foodstuff, etc. There are two types of First Trader Solution Loan and they are:
- Main First Trader Solutions (MFTS): The repayment period for this is 180 days (6 months) with an interest rate of 0.5% of the loan amount to be paid daily.
- Exceptional First Trader Solutions (EFTS): The repayment period for this is 90 days (3 months) with an interest rate of 1% of the loan amount to be paid daily.
First Gem Funds
This loan supports women who own Micro, Small, and Medium-Sized Enterprises (MSMEs). It helps with their daily financial needs and acquiring important equipment or property for their businesses. The interest rate is 9% per year, with a one-time management fee of 0.1% flat and Keyman insurance fee of 0.1%.
First Bank Interest Rate on Loan Calculator
First Bank offers a loan calculator that is very easy to use on their official website. This can help you estimate your monthly payments and total repayment amount. Here’s a step by step guide on how to use the First Bank loan calculator to know your interest rate.
1. Visit First Bank’s Website
Start by going to First Bank’s official website. Look for the loan calculator tool on their website. It’s designed to be user-friendly and accessible.
2. Input Loan Details
Once you’ve found the loan calculator, you’ll need to provide the following information:
- Loan Amount (₦): Enter the amount you want to borrow.
- Payment Frequency: Choose between weekly or monthly payments.
- Interest Rate (%): Input the annual interest rate for the type of loan you’re considering.
3. Click Calculate
After entering all the necessary details, click on the “Calculate” button.
The loan calculator will then display:
- Total Repayment (Principal + Interest): This is the total amount you’ll repay over the loan term, including the principal amount and interest.
- Monthly Payment: This shows the amount you need to pay each month to clear your loan.
Using First Bank’s loan calculator can help you understand the financial responsibility of taking out a loan. Remember to review the terms and conditions of the loan carefully, as they may change over time. For updated information or any inquiries, visit First Bank’s official website or contact their customer care center.
This calculator is helps you to estimate your loan repayment, but it’s important to stay informed about any changes in terms and conditions that may affect your borrowing decisions.
How To Apply For Loan On First Bank
There are several ways to apply for a loan with First Bank:
Using USSD:
- Dial *894# and select 3 (Get loan) or directly dial *894*11#.
- Check Loan Availability: The next prompt will show how much you can borrow. Enter the amount you want and click send.
- Review Terms: A list of the interest rate, management fees, and insurance fees will be displayed. Enter your transaction PIN to accept the terms and conditions.
- Receive Loan: The loan amount will be sent to your account, and the interest rate, management fees, insurance fees, and VAT will be deducted as the first payment.
Using the FirstMobile App:
- Download the App: If you don’t already have it, download the FirstMobile App from your Play Store and open it.
- Login: Log in to the app, then open the menu by clicking on the top left corner of the display.
- Select Loans: Click on “Loans” and choose your preferred loan type. The next display will show how much you can borrow and the associated interest and fees.
- Review and Accept Terms: Accept the terms and conditions shown, then enter the amount you need (not exceeding the offered amount).
- Complete the Process: Enter your transaction PIN. The loan will be sent to your account, and the interest rate, management fee, insurance fees, and VAT will be deducted.
Conclusion
First Bank offers various loan options, each with different interest rates. Whether you’re considering FirstCredit, FirstAdvance, Agent Credit, or other loan types, it’s important to understand the interest rates and fees. Using First Bank’s loan calculator can help you estimate your monthly payments and total repayment amount. Ensure the loan terms align with your financial plans and needs before proceeding.