Loans are intended to provide individuals or organizations with additional funds to cover expenses and other obligations. They are then repaid over an agreed period of time, with interest. Personal loans and payday advances are the most popular offers. While the first is an instant loan granted to individuals after verification, the second is generally extended to salaried professionals. But even though personal loans tend to cost less because they have longer terms, there are still a few factors to consider before deciding which option is right for you.

According to a report by The bank rate, some of the top reasons people get personal loans include emergencies, moving purposes, debt reconciliation, payday loans, and other celebratory expenses. Depending on why you are taking out a loan, it is important to determine the amount based on your monthly budget for principal plus interest repayments. If it’s an emergency that you need money for, a payday advance loan may be more beneficial to you than a payday loan because it’s faster and doesn’t involve intermediaries. Nevertheless, personal loans are a very good option when it comes to financing a vehicle or acquiring new gadgets. Indeed, in the long run, taking out a loan means you can still build a savings portfolio for rainy days.

With rising inflation figures in countries like Nigeria (15.63%), employees are indeed strongly affected. Despite a regular flow of income, they face difficulties in meeting certain obligations or recurring bills. Unfortunately, the reality is that most Nigerians would rather borrow from friends and family than take out a loan. This is largely due to high interest rates, inability to meet certain requirements, and fear of being harassed by digital lenders who use shameful tactics to collect on loans.

To bridge this gap, Nigeria’s premier financial institution, First Bank of Nigeria Limited (FirstBank), is offering its customers better and easier alternatives through a variety of loan products. The bank also creates opportunities for millions of employees to dream big by exploiting the full potential of their accounts.

Here’s a breakdown of his loan plans

FirstAdvance, as the name suggests, helps you meet financial obligations that may arise before wages are paid. This plan offers a maximum amount of ₦500,000, based on the applicant’s average salary over the course of 3 months. However, customers are required to have an active salary account domiciled with First Bank, with proof of regular payment of salary. Cash loans for salaried customers have a set interest rate of 2.5% fixed, collected in advance, and can be accessed through the bank’s FirstMobile app and by dialing *894*11# or *894 #.

FirstCredit is the most flexible plan that allows you to access simple and fast loans without any collateral or documentation. Customers can apply for loans of up to ₦300,000 using a mobile phone or tablet. But there is a catch. The account must have been operational in First Bank for at least 6 months, as well as a good credit record. FirstCredit has a fixed 10% interest rate. Here’s how it works in a few easy steps:

• Dial *894#
• Select Loans
• Select FirstCredit
• Select Get New Loan #
• Select the account number with which you want to apply for the loan
• Grant consent to use data and agree to terms and conditions
• You will be presented with 4 loan amount options
• Choose the desired loan amount
• The loan is paid into your account

FirstBank’s Personal Payday Loan (PLAS)) is an upgrade to its First Advance offering. In addition to providing the funds needed to address urgent issues that may arise, this plan allows clients to achieve their other long-term goals and objectives. For example, capital projects, rent obligations, vacations, professional courses and other rewarding undertakings. According to the bank, with PLAS, Nigerian employees can be assured of a financial partner to realize their dreams. Through this plan, salary account holders can access up to ₦30 million and repay the loan over a period of up to 36 months, subject to a retirement age of 60 and a retirement plan. flexible reimbursement. To apply, you will need the following documents:

• Letter of application
• Personal loan application form
• Payslip
• Balance sheet
• Letter from the candidate on the total emolument
• Confirmation of Applicant’s Employer on FBN’s Approved List
• Irrevocable salary domiciliation letter for the duration of the facility.
• Complete the form and submit it to nearest First Bank branch.

FirstBank is investing heavily to ease the pressure on customers as they meet their immediate and medium-term financial goals. The vision behind its payday advance loan (FirstAdvance) is to ensure that customers are not charged high interest rates or forced to submit more collateral. Its PLAS plan offers flexibility and good interest rates, and helps increase the customer’s credit rating. It also does not require so much paperwork since the process is done online.

The bank also offers strategic services and incentives aimed at providing customers with the best experience. For example, his salary account benefits include a zero opening balance and no minimum daily operating balance or AMC fees. Customers also get their first Verve or Mastercard issue free with unlimited access to consumer loans.