I've been seeing a lot about education loans from Bank PHB and Skye Bank. Has anyone ever applied for or got these loans? What are the interest rates and the payback terms? I notice both banks are silent on the interest rates. Anyone with relevant info should please post

@poster
i was @ bankphb adeola odeku v.i last week thursday and what i was told made me pretty disappointed.it goes to show that the information given out via the media is only half truth!!!
first, you need to save 10% of the total amount you'd need(e.g tuition,accommodation,maintenance etc). afterwards, to qualify for the loan, you must have 20%of the total amount(cash in hand) plus collateral worth 130% of the 80% the bank is offering. the maximum payable by the bank is 5million. the interest rate is 17-19%(customer care wasn't sure as at the time of my my inquiry) monthly!!!!. can u believe that MONTHLY!!! and you have 42months to pay back or else, the collateral will be possessed.
i was also informed that you could have a guarantor, who'd service the interests monthly till you return after which you're given 6months grace period for the commencement of your paybacks!!(assuming you'd have secured a job by then).
How interesting! is that a loan or outright intended slavery? if these banks cant offer anything better, an offer they wont even risk letting their relatives securing, they should just settle for their 'deposits and withdrawals' banking, or retail banking.
i was totally pissed and just struck it off completely from my list of alternatives for securing funds for my U.K masters.

Well Not all the options involve collerteral, though i like your contribution, well it sounds more like slavery!! and i was seriously considering it!! maybe i should go to my village and borrow!! lol

I also heard of the 19% monthly interest and its simply outrageous.
Skye bank procedures are long and not feasible as far as I'm concerned.
God go help us oh

I noticed this in the papers as well. The interest rates are deadly o!!! Why cant things cant just run smoothly in the country, there must always be comma.

@mikkyphp

What do they mean by monthly? Is the 17% interest compounded monthly? If so its more than slavery. Its slavery and murder.

I fully understand about the collateral though. You can't trace anyone in Nigeria.

I knew those loans had "K-Leg" when I saw that they kept quiet about interest rates and repayment terms. The loans are not different from any other loan. Well, it's definitely not worth it for me then.
I understand Oceanic is also doing the same thing. I'll find out and post details ASAP

Bank PHB should be sued for misleading Nigerians by giving out false info. Also for attempting to enslave their customers indirectly, period

I doubt it's monthly.

Its 17% per annum.

Whilst not being an Advocate for BankPHB, there's no other bank in Nigeria that will offer you less. If they do, it will be full of hidden charges.

Those who have taken education loan in England will tell you its just as difficult to pay back over there as well.

Its unfortunate that we do not have alternatives like access to softer loans etc am sure if President Umaru included as his 8th point of Agenda, an organised way of providing Quality education to his citizens training them in areas we have skills shortage & they returning back to 9ja after their studies to build the nation, we would not be sujected to humilation of our so called banks a.k.a. Funds Sourcing Brothels

The interest rate cannot be 17% monthly, Please stop being so sensational,
And if you are alarmed at 17% interest rate, try investing in the nigerian stock market during the current lull/crash and then sell in december/january and I bet you that 50% returns will be to small for you,

This is just innovative financing to help you achieve you dream of quality education,

Lets do a simple arithmetic to show how Nigeria funds Education in UK. Its mind boggling, shameful & embarassing.

Using Foundation students as a example:

(1) At least 40 Universities come to Nigeria to cart educational slaves 2 times a year for Sept entry and January entry.

(2) The average Foundation Student fee is £5,000 usually paid upfront

(3) Some UK universities give admission to at least 200 Nigerian prospects

(4) £5,000 x 200 Nigerian prospects = £1,000,000 x Sept entry and January entry = £2,000,000

(5) £2,000,000 x 40 UK Universities = £ 80,000,000 (EIGTHY MILLION POUNDS)

(6) £ 80,000,000 x exchange rate of 240:1 = =N=19,200,000,000 (NINTEEN BILLION NAIRA)

(7) =N=19,200,000,000 (NINTEEN BILLION NAIRA) provided by 800 prospective Foundation students to UK universities (this is minus other levels & Masters ooo!!!)

( Average of =N= 20,000 Student Visa fees (non refundable) paid by 800 prospective Foundation students to UK universities = =N= 16,000,000

(9) Average of =N= 100,000 Virgin Nigeria Airfares paid by 800 prospective Foundation students to UK universities = =N= 80,000,000 (Half goes to richard Branson)

NOW, FELLOW NIGERIANS, PLS TELL ME WHO IS FUNDING UK UNIVERSITIES? WHO IS FUNDING BRITISH HIGH COMMISION? WHO IS FUNDING THE AIRLINES? N I G E R I A N S

QUESTION: HAVE WE FUNDED LOCAL UNIVERSITIES WITH ANTHING CLOSE TO THESE FIGURES ANNUALLY?? SO WHY WONT WE HAVE UNEMPLOYABLE GRADUATES?

Nice analysis, maybe a little exaggeration there, but good chain of thought.


The way I see it is that, we spend a lot of money on unneccesary stuff in nigeria anyway - Yahoo-yahoo boy makes 50 million naira and can't account for it 1 month later, Billionaire wants to keep gettig rich and buy the newest cars but the road is still bad.

Little little stuff like this adds up to the big picture - Oyinbo man sees all of this and goes, "wow, I need to be involved and make some money to pay off the taxes I owe and the student loans I owe and also donate to my favorite charity etc". Most naija people, no matter where you live, thinks, "wow, I need to be involved. I need to get my share so I can be rich and do better." The better in our mind is open to interpretation.


about the loans, student loan isn't supposed to be cheap. Its blood money - In all the civilized world! You'll pay back till you die!" but people need it and people take it. If you want an education, nothing should stop you. That doesn't mean you shouldn't find other means. Use the loans as your LAST resort!

Well If the loan options you see in the media are not suitable,
Try downloading this insightful package on 5 ways to raise
some cash for your  UK Trip

The intersest rates have to be annually, it cant be monthly as it means u will be paying N850,000 @ the rate of 17% on a N5,000,000 loan which is just ridiculous as you would covered the capital in less than 6 months.

Also, These loans are better for postgraduate students who use only a year except there is an oppurtunity for refinancing every year for foundation and undergraduate students. These loans should be used as a LAST RESORT

@GUK, u right on point. Not to talk of the huge accomodation and living expenses. THese schools feed on International students.

Then again, nobody is putting a rope on ur neck to study over there.

Guy you are perferctly right. I was at the Asokoro branch of Bank PHB and i was annoyed i wasted my time in the sun to get there in the first place. I always wonder where we got this exploitative tendency from. you cant find it the world over only here in naija. And all of them sit on the Board of these banks and pretend to have integrity. But God is for US. sha

Bank loans are like you guys have described and more in virtually all countries! They make slaves of those who take em

@ GUK

Is it about funding UK universities or getting quality education?

please check your facts right before you post.

that is crazy men,17%-19% monthly
dat one die straight!

BIG GBESE

ANYBODY WEY WAN DEY PAY EVEN AFTER DEM DEY INSIDE GRAVE FIT CARRY GO!!!!

mikkyphp:

See, to all of you thinking that the interest rate is yearly, how many of you have actually been to inquire at the banks in question?
you don't just sit there and assume it should be per annum.
As i was speaking to the customer care consultant, a marketer breezed by and chiped in, he said "your guarantor can service the monthly interests pending when you come back, so that it wont be burdensome on you"!
When i was told the interest rate, i raised my voice, and they emphasized MONTHLY!
Think of it also, if it's annualy, why is the payback period measured in months? - 42Months!

please check your facts right before you post.

don't be an idiot. My friend was over at the Bank to sign up for the loan. It's yearly!

Guk:


QUESTION: HAVE WE FUNDED LOCAL UNIVERSITIES WITH ANTHING CLOSE TO THESE FIGURES ANNUALLY?? SO WHY WONT WE HAVE UNEMPLOYABLE GRADUATES?

Do the students need to fund the Nigerian universities with these figures before we improve our educational sector?
These fees are usually from Post Graduate students. The funding obtained from Undergrads, what benefit has accrued from it?

Bawss1:

Bank loans are like you guys have described and more in virtually all countries! They make slaves of those who take em

Post Graduate degrees usually give an individual a far better chance in the Nigerian Labour market. It's usually the case that Msc holders (especially from good foreign schools) get decent jobs. It's a gamble that usually pays off, so once the Msc hlder starts working, he can easily pay off the loan.

Many of my friends that did a Msc in Oil & Gas in the Uk are working for Oil companies. is it that class of person that will find it difficult to pay back the loan?

It's an investment. As with all investments there's an element of risk.

17% can never be monthly! No matter how inhuman the banks may be, no one will charge 17% monthly, infact anyone signing up for that is a real FOOL! Imagine, if you obtain the maximum 5million, simple arithmetric puts the interest (if it's monthly like some claim) at 850,000 per month. Multiply 850,000 by 42months, total interest payable becomes 35,700,000!!!!!! Interest + Principal repayment then totals 40,700,000!
Make people use their head, you get a loan of 5million and end up paying 969,047 (interest + principal repayment) monthly over 42months! imposiCANT!

mikkyphp:

See, to all of you thinking that the interest rate is yearly, how many of you have actually been to inquire at the banks in question?
you don't just sit there and assume it should be per annum.
As i was speaking to the customer care consultant, a marketer breezed by and chiped in, he said "your guarantor can service the monthly interests pending when you come back, so that it wont be burdensome on you"!
When i was told the interest rate, i raised my voice, and they emphasized MONTHLY!
Think of it also, if it's annualy, why is the payback period measured in months? - 42Months!

please check your facts right before you post.

Interest on loans (on most arrangement) never paid yearly, but monthly. It is only calculated on yearly basis then prorated over the life of the loan. In this case the total monthly repayment will be (139,285 which includes interest and principal) interest only will be 20,238 monthly.

Make people use their head! Chineke

Bawss1:

@ GUK

Is it about funding UK universities or getting quality education?

i feel u jare,
have u ever questioned the  amount that goes into keeping the standards up that makes it desirable.
well,before u start blaming the banks for high interest rates,how many of u guys keep your money in the bank for up to 6 months before drawing down.its a fact,cost of funds is too high,therefore interest rates will be high.
and interest will be charged yearly, prorated monthly.gbam

@texazzpete and incaGold
ma bad
remember i said the customer care consultant i met that day wasn;t sure of the interest rate(17-19%), when she said 17 or 19%, i asked annually? she said no monthly! now you've don the math, i can see its outrightly impracticable for it to be charged monthly.
Bank operatives should be armed with accurate information so they wont be stuttering when asked questions regarding their products.

lol

It can never be 17% per month, otherwise it means 204% p.a ( ), which is the standard unit in banking

If you want to know what to pay monthly, google search for Amortization Schedule Calculator then put the principal, rate and repayment period.


Shikena

na wa

@Incagold
Thanks for breaking it down. Yeah I guessed it couldn't be 17% monthly but was too lazy to do the math.

Its clearly a loan for a masters programme. The interest rate is quite high for an educational loan but [b]interest rates [/b]in Nigeria are generally too high. Its a high risk business.

But for a masters it OK in our current situation. Many people who thought it impossible to study abroad can make it now, maybe after a year or two of work and saving a lot. It will definitely be worth it when you come back and start enjoying a [b]major [/b]salary boost.

santony2k:

Nice analysis, maybe a little exaggeration there, but good chain of thought.


The way I see it is that, we spend a lot of money on unneccesary stuff in nigeria anyway - Yahoo-yahoo boy makes 50 million naira and can't account for it 1 month later, Billionaire wants to keep gettig rich and buy the newest cars but the road is still bad.

Little little stuff like this adds up to the big picture - Oyinbo man sees all of this and goes, "wow, I need to be involved and make some money to pay off the taxes I owe and the student loans I owe and also donate to my favorite charity etc". Most naija people, no matter where you live, thinks, "wow, I need to be involved. I need to get my share so I can be rich and do better." The better in our mind is open to interpretation.


about the loans, student loan isn't supposed to be cheap. Its blood money - In all the civilized world! You'll pay back till you die!" but people need it and people take it. If you want an education, nothing should stop you. That doesn't mean you shouldn't find other means. Use the loans as your LAST resort!

Well said my man, very well said indeed!

My Dear, don't mind those 'Yeye people' all they know is amassing wealth to themselves. Please let me state it that

Nigerian banks have no plan what-so-ever for us, just like our government. They dont venture where the can help

selflessly. It is a pity, in some other contury when you come up with a bussiness plan, all you need is to walk up to a

bank,explain to them with statistic and forecast why they should support your idea. And they will sponsor it, but here

dont just think of that because they will help you to kill the idea.

Just look at Nigeria, full of talent and ideas but no one,no organisation to sponsor. Please God help Nigeria for hardship

is so hard here. I feel so painful when i see those children on street, God enrich me so that i can help out.

Please with the little you can do, help somebody today. That person next to you.


GOD HELP NIGERIA!!!

sad to say house, i was at bankphb yesterday (friday) 1st went to asokoro branch and the lady was as confused as Mr. Spencer and kept on making mistake, so i went to the branch close to wuse II next to Diamond bank and she broke it down for me.


1. apart from the bill that we know 10% initial capital and 20% of the school fees, u need to pay a valuer ( their own to go and value the house or landed property)
2. pay them 25,000 to go to AGIS (abuja Geographic Information System) to check all your stuffs
3. hate to say this, but its 19% and its MONTHLY!!!!! so if u want to borrow a loan for 4 million, u wld pay 146,111,00 roughly a hundred and forty seven naira monthly and for 3 million u pay about a hundred and eleven thousand monthly but as you pay this month, the fee drops gradually till u completely pay all.
4. the lady also says there are other charges for evaluation and verification apart from the AGIS fee,

the bill is not all, i just lost my patience and took off and she tried to convince me that other banks do the same, and i have paid the 10% and 20% before she told me all this!!!
i just fit no vex

pls u cld also verify from any other branch and share with the house,

sad to say house, i was at bankphb yesterday (friday) 1st went to asokoro branch and the lady was as confused as Mr. Spencer and kept on making mistake, so i went to the branch close to wuse II next to Diamond bank and she broke it down for me.


1. apart from the bill that we know 10% initial capital and 20% of the school fees, u need to pay a valuer ( their own to go and value the house or landed property)
2. pay them 25,000 to go to AGIS (abuja Geographic Information System) to check all your stuffs
3. hate to say this, but its 19% and its MONTHLY!!!!! so if u want to borrow a loan for 4 million, u wld pay 146,111,00 roughly a hundred and forty seven naira monthly and for 3 million u pay about a hundred and eleven thousand monthly but as you pay this month, the fee drops gradually  till u completely pay all.
4. the lady also says there are other charges for evaluation and verification apart from the AGIS fee,

the bill is not all, i just lost my patience and took off and she tried to convince me that other banks do the same, and i have paid the 10% and 20% before she told me all this!!!
i just fit no vex

pls u cld also verify from any other branch and share with the house,