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Fidelity Eduloan FAQs
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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 |
|
|
Term Loan |
In addition to Irrevocable Domiciliation, Personal Guarantee & Undated Bank cheques, there should be the following:
|
- 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.
