How to Borrow Money from First Bank? What Steps do I Need to Take to Borrow Money from First Bank?

First Bank

First Bank, or FirstBank, is one of the biggest banks in Nigeria and all of Africa. It has more than 758 places where you can do banking in 10 different countries. The main office is in Lagos, and it's been around since 1894, which is more than 120 years!

First Bank is in competition with four other big Nigerian banks called Access Bank, Guaranty Trust Bank, United Bank for Africa, and Zenith Bank.

This bank provides a lot of services for both regular people and businesses. They do everything from personal banking to helping out big companies. And yes, they also offer business loans.

How to Borrow Money from First Bank?

Getting a loan from First Bank is easy. You can apply at one of their branches or online. If you go to a branch, you can fill out the application there. If you prefer, you can download the application form online, fill it out, and then bring it to a First Bank branch.

Before they give you the money, First Bank will check if your business is suitable for a loan. They will also consider what you need the loan for before deciding.

Once your loan is approved, you'll get a letter telling you the terms and conditions you need to follow before you get the money.

They might ask for these documents:

• Completed application form

• Info about your company

• Your business plan

• Budget showing your money flow

• Bank statements for the past 12 months

• Checked financial accounts

• Certificate showing your business is incorporated

• A valid ID (like a driving license, passport, or voter's card)

• Proof of where you live

• Details about anything you're offering as collateral (if you have any)

Types of Loans at First Bank

Different types of loans with good rates and flexible terms:

• Personal Loans:

  • Instantly boost your borrowing ability with a personal credit line.

  • Use your home equity to secure a home equity loan.

• Business Loans:

  • Finance your business with options like a credit line, lump-sum business loan, or construction loan.

• Credit Cards:

  • No annual fees and competitive interest rates.

  • Use them for personal or business transactions today and pay for them later.

• Mortgages:

  • Various mortgage options available, including conventional, government, jumbo, commercial, and professional loans.

How to Apply for a First Bank Business Loan?

To qualify for a business loan at First Bank, it depends on the type of loan you want and your business. Some loans are only for specific types of businesses, like health loans for medical-related businesses.

To increase your chances:

• Show you can repay by demonstrating regular monthly income.
• Have a good credit history with no unpaid debts.
• Meet standard criteria like having a registered business with the Corporate Affairs Commission (CAC).
• Have a business bank account.
• Been in business for at least 1-3 years.
• Be an active customer of the bank.

Remember, business loans are usually for registered businesses. If your business isn't registered, you can explore personal loan options that First Bank also provides. For more funding choices, you can also check out SukFin.

Qualifying for a Business Loan from First Bank?

First Bank is a big bank with many types of loans for businesses. The rules for getting a loan depend on what kind of loan you want. Some loans are only for certain types of businesses. For example, health loans are only for businesses in the medical field.

To get a loan, you need to show you can pay it back. This means having a regular income each month and a good history of repaying debts.

Here are some other things they might look at:

• Registered Business:

  • Your business should be registered with the Corporate Affairs Commission (CAC).

• Bank Account:

  • You should have a business bank account.

• Trading Time:

  • Your business should have been running for at least 1-3 years.

• Credit History:

  • Your Credit Bureau Report should be good, with no unpaid debts.

• Bank Customer:

  • It helps if you are already a customer of the bank.

Remember, business loans are only for registered businesses. If your business is not registered, you can check out personal loan options that First Bank also has. If you need more options, you can also think about applying for finance with SukFin.

Funding Options Available at First Bank to Help Different Types of Businesses

First Bank offers various types of business loans to help different types of businesses. Here are some of the funding options available:

1. Revenue Loans and Overdraft:

   • Access extra money beyond what's in your account for unexpected expenses.

2. Contract Finance:

   • For businesses handling large contracts, First Bank can finance up to 70% of the contract value with a maximum term of 9 months.

3. Secured Term Loans:

   • Get cash for capital projects or business growth, with a maximum credit of N40 million and a repayment period of 3 years.

4. Import Finance:

   • Businesses involved in importing goods can benefit from credit facilities, including bills for collection and letters of credit.

5. Oil and Gas Contract Finance:

   • Nigerian oil and gas companies can access funds for specific contracts, borrowing up to 70% of the cost of execution.

6. Cement Distribution Finance:

   • Distributors of cement products can benefit from flexible loan terms.

7. Invoice Discounting Finance:

   • Get cash based on unpaid invoices from reputable organizations to manage your working capital.

8. Bonds and Guarantees:

   • Aimed at contractors needing bank guarantees for contracts, with a tenor not exceeding 12 months.

9. Telecoms and Distributorship Finance:

   • For telecom distributors looking to enhance distribution and sales.

10. Petroleum Dealership Finance:

    • Allows businesses to stock white petroleum products with registration and authorization requirements.

11. FMCG Key Distributorship Finance:

    • Helps distributors of Fast Moving Consumer Goods increase business volume.

12. Local Purchase Orders Finance (LPO):

    • Businesses can get funds based on confirmed purchase orders, with up to 70% of the value advanced.

13. Operational Vehicles:

    • Acquire a new vehicle for day-to-day business use, with a maximum loan amount of N10 million and a 3-year tenor.

14. FirstEdu Loan:

    • Aimed at private school owners for extra cash to run their schools, with loan tenors ranging from 3 to 12 months and a maximum amount of N20 million.

15. First Trader Solutions (FTS):

    • A short-term overdraft facility for traders dealing with fast-moving goods, with credit provided for 90 or 180 days and a maximum loan amount of N5 million.

16. Health Finance Product:

    • Designed for registered pharmacies and private hospitals to purchase drugs and medical supplies, with a maximum loan amount of N5 million for 6 months.

17. Commercial Mortgage:

    • Companies can acquire landed property for commercial purposes through First Bank's commercial mortgage.

18. Agricultural Financing:

    • Various finance products are available for agribusinesses, including schemes backed by the Central Bank of Nigeria (CBN) and conventional term loans and overdrafts.

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