Fidelity Eduloan FAQs

CORPORATE ACCOUNT

Fidelity Eduloan FAQs

Fidelity Eduloan is a bespoke loan product designed to meet the short to medium term funding needs of duly registered private educational institutions (primary, secondary and tertiary) in Nigeria.

  • Structured private educational institutions (primary, secondary & tertiary)
  • Schools that have operated for a minimum of 3 years
  • Schools that have 100 pupils/students and above
  • Schools that have a current account relationship with Fidelity bank.

All Fidelity branches across the 36 states of Nigeria can avail the Eduloan facility to any private educational institutions provided that they meet the RAAC requirements.

  • Term Loan
  • Working Capital Finance (Overdraft)
  • To fund expansion projects and construction works for schools.
  • To purchase and lease fixed assets such as school buses, generators etc.
  • To finance minor renovation works on school property.
  • To finance payment of salaries and procure items such as furniture, educational books, school uniforms, teaching materials etc.

Obligor Category Minimum Annual Turnover /Fee Collection Record Minimum Years of Operations
Category A
N150m
3 Years
Category B
N75m
3 Years
Category C
N40m
3 Years
Category D
N15m
5 Years

Maximum Single Obligor Limit
Obligor Category
Term Loan (Project Finance, Asset Finance, Lease
Working Capital Finance
Min. Years of Operations
Category A
30% of annual collection
30% of termly collection
3 Years
Category B
25% of annual collection
25% of termly collection
3 Years
Category C
20% of annual collection
20% of termly collection
3 Years
Category D
15% of annual collection
15% of termly collection
5 Years

Loan Type Tenor Contribution Maximum lending amount
Working Capital Finance
30 – 180 days (one to two terms/semesters)
No contribution required
N30m
Term Loan
36 months (30 months for school bus lease – 7 terms/semesters)
Minimum of 30% contribution of project/asset cost
N150m

Loan Type Interest Rate Management Fee Advisory Fee Residual Fee
Working Capital Finance
22%
1% Flat
N/A
N/A
Term Loan
22%
1% Flat
1% (Payable from 2nd year on reducing balance basis
1% (On cost of leased Asset)

Loan Type Collateral Requirements
Working Capital Finance
  • Irrevocable Domiciliation of School Fees
  • Personal Guarantee of Proprietor/Prime Promoter plus statement of networth
  • Undated Other bank cheque IFO Fidelity covering 120% of loan amount
Term Loan

In addition to Irrevocable Domiciliation, Personal Guarantee & Undated Bank cheques, there should be the following:

  • Lien on leased Assets
  • Legal Mortgage on landed property belonging to Prime Promoter/Proprietor
  • Comprehensive insurance cover on all property for 110% of the value with Fidelity noted as the first loss payee

  • To keep pace with competition in this emerging and very attractive market segment.
  • Increase our share of the Education Sector banking market.
  • Grow our low cost deposits, income, and risk asset numbers by harnessing the opportunities provided by the very active, thriving Nigerian Education sector.
  • Attract new school accounts/retain the ones currently in our books.
  • Complement our other product offerings to schools.
  • Receipt of loan request letter from school with supporting documents.
  • Relationship officer reviews customer’s application and supporting documents against a checklist of eligibility/ risk acceptance criteria.
  • Relationship officer prepares a Credit Approval Memo (CAM) for sign off by the BL, RBH and Managed SMEs.
  • The CAM, school’s loan request letter, account statement with supporting documents are scanned to Credit Appraisal Unit (CAU) of Risk Management Group (RMG).
  • CAU team reverts.
  • Offer letter is issued to customer and account officer follows up to ensure compliance with Conditions Precedent to drawdown/documentation requirements’
  • Resident Auditor/TSD Head review/sign off on the requisite documents against a checklist of Conditions Precedent to Drawdown.
  • Duly verified documents are uploaded on the Legal workflow portal for review/approval by legal and Risk.
  • Review of facility documents by legal officer and approval by GH, legal on the portal
  • Review of facility documents and approval by Risk Management.
  • Credit administration/Disbursement unit gets Managed SME to approve.
  • Set up of facility by Credit administration/Disbursement unit.
  • Disbursement/set up is effected using the correct purpose of advance code to aid monitoring.
  • Relationship Officer follows through to ensure termly/session school fees come to Fidelity till final liquidation is achieved.