The newly elected president of the Federal Republic of Nigeria has been making the news since his inauguration. From fuel subsidy removal to the electricity act, and now our latest law in place; THE STUDENT LOAN ACT.

This act was signed into law as an effort to make education accessible to students from all backgrounds who are at their tertiary level of education. The new student loan act offers up to N500,000 a year at an interest-free rate, as well as provides funds for all education-related issues, including textbooks, and research.
And since SnapCash is your one-stop for the best financial news, we’ve curated an all-you-need-to-know article on the new student loan act. You’re welcome!

Facts you should know about the student loan act We never want you to run on hearsay or “dem say dem say” and that’s why we’ll be taking a closer look at some of the facts of this new act. Shall we?

## Application criteria
You may already be wondering “What are the requirements, and how do I know I’m eligible?”. We got you!

The applicant must have gained admission into any Nigerian University, Polytechnic, College of education, or Vocational school established by the Federal Government or any state government: This means that the student loan act is only applicable to students studying in Nigeria. Sorry to our Diasporan readers… The applicant’s family must have a yearly income that does not exceed N500,000: For those whose parents or guardians earn about a million a year, they don’t qualify for the student loan. Please note that this means; the monthly income in your family must be about N42,000. Each intending applicant must have a minimum of two guarantors who must fall into one of the following categories: Civil servants of at least Level 12 in the service — this refers to a civil servant with grade level 12 and earns between N255,000 to #N700,000 monthly Lawyers with a minimum of 10 years of post-call experience — this refers to a lawyer of the federation with a minimum of 10 years of experience after being called to the bar. Judicial officers or Justices of the Peace — a local judicial official who is empowered chiefly to administer oaths, perform marriage ceremonies, certify documents, and in some states may have additional judicial powers (as to issue summonses). 

## Disqualification criteria
We’ve seen the eligibility criteria, now let’s take a look at the disqualification criteria.
Parental loan default: If the intending applicant’s parent has been found to have defaulted on a previous loan, the applicant is immediately disqualified. Applicant’s loan default: For an applicant who has taken out a previous loan and is found to have defaulted on the said loan, there is also an immediate disqualification. 

Criminal offenses: If an applicant is found to be convicted of a felony (any offense punishable by death or imprisonment of 3 years or more without previous conviction), be found to be involved in a drug case or has been/is involved with examination malpractice, they are automatically disqualified from participating in the student loan act. Repayment and penalties
This seems a tad bit unreal, doesn’t it? We’re all skeptical about how effective and helpful this new act will be to the average Nigerian youth
You may already be wondering how the student loan will be repaid and the associated penalties. Again, we’ve got you covered.

Students are required to begin repayment for the loan 2 years after their National Youth Service Corps (NYSC) program with a deduction of 10% from their monthly salary or total monthly profit (if they are self-employed). Self-employed individuals must submit relevant information and documentation such as business name, address, location, registration documents (if applicable) within 60 days to the committee. The chairman of the committee is to be notified of a job change within 30 days of working under new employment. Failure to pay back the student loan will result in a fine of N500,000 or imprisonment for a term of 2 years. This scheme is set to be managed by the Central Bank of Nigeria on behalf of the federal government. 

The governor of the CBN shall set up a special committee and head this committee as the Chairman. He shall also appoint a committee secretary.
According to the new act, students applying for loans must apply to the chairman of the education Fund committee through the student affairs officer of their respective institutions upon satisfying the criteria above. Loan disbursements are made within 30 days of the application reaching the chairman of the committee.

## What's next
Now that you’re well informed of all the necessary details of the new student loan act. Will you be applying anytime soon? Are you eligible?
Tell us what you think in the comments!


Tinubu has approved loans for students — are you eligible?

Nigeria’s economic landscape presents both opportunities and challenges. With
fluctuating inflation, high living costs, and unpredictable financial emergencies, many
Nigerians find themselves in need of quick financial support. This is where small loans
play a crucial role in helping individuals and families manage short-term financial needs
and unexpected expenses.

## Understanding the Economic Challenges in Nigeria

The Nigerian economy is characterized by periods of instability, inflation, and fluctuating
exchange rates. These economic factors often impact the purchasing power of
individuals, making it difficult for many to meet their daily financial needs. Additionally,
the lack of widespread financial inclusion means that a significant portion of the
population does not have access to traditional banking services, making small loans an
essential financial tool for survival.

Many Nigerians live paycheck to paycheck, with little to no savings for emergencies.
When unexpected expenses arise—such as medical bills, school fees, or urgent home
repairs—access to an urgent loan in Nigeria can provide much-needed relief. This has
led to the rise of fintech solutions that offer instant cash loans, providing quick and
accessible financial support.

With the advent of digital lending platforms, urgent loans in Nigeria have become more
accessible to those in need. These platforms eliminate the bureaucratic hurdles
associated with traditional banks, enabling individuals to secure loans within minutes,
often without the need for collateral or excessive documentation.

## How Instant Cash Loans Bridge Financial Gaps

Small, short-term loans are designed to offer immediate assistance for those in need.
With just a few clicks on a mobile phone, individuals can apply for a loan and receive
funds directly into their bank account. This level of convenience ensures that people can
borrow money immediately without the hassle of excessive paperwork or long waiting
periods.

### Key Benefits of Instant Cash Loans:

1. Speed and Convenience: Instant cash loans allow users to access funds within
minutes, making them ideal for emergency situations.
2. Minimal Documentation: Unlike traditional banks, which require extensive
paperwork, digital lenders often need just a few pieces of information.
3. No Need for Collateral: Lending platforms like SnapCash remove the
requirement of assets or guarantors.
4. Flexible Repayment Terms: Borrowers can select repayment schedules that suit
their financial capacity, making repayment more manageable.
5. 24/7 Accessibility: Since most digital lending platforms operate online, users can
apply for loans anytime, anywhere.


## The Impact of Small Loans on Everyday Nigerians
Small loans are more than just a temporary fix—they enable financial stability and
resilience in tough times. Here are some ways they help:

1. Emergency Medical Bills: When a loved one needs urgent medical attention,
access to instant cash loans can be life-saving.
2. Education Expenses: School fees and other academic-related costs can be
managed more effectively with small loans, ensuring that children do not have to
miss out on education due to financial constraints.
3. Bill Payments: Whether it’s electricity, rent, or other utility bills, small loans help
individuals stay on top of their financial obligations and avoid late fees or service
disruptions.
4. Transportation and Mobility Needs: Many Nigerians rely on public transport or
personal vehicles for commuting. A small loan can cover fuel, vehicle repairs, or
transport costs during financially tight periods.

## Responsible Borrowing for Financial Growth
While small loans provide critical financial relief, responsible borrowing is essential.
Borrowers should ensure they take loans that they can comfortably repay to avoid
falling into a cycle of debt. Some best practices include:

1. Borrow Only What You Need: Avoid taking out larger loans than necessary to
minimize repayment stress.
2. Understand Loan Terms: Always read the terms and conditions, including
interest rates, repayment schedules, and possible penalties.
3. Create a Repayment Plan: Plan your loan repayments within your budget to
avoid defaults or late fees.
4. Use Loans for Productive Purposes: If possible, prioritize loans for income-
generating activities rather than non-essential spending.

Need an instant cash loan? SnapCash is here to help. [Apply today](https://linktr.ee/snapcash.ng) and get the funds
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How Small Loans Help Nigerians Navigate Tough  Economic Times

Quite honestly, everyone wants their loan approved but not everyone gets their loan approved. But that doesn’t have to be you, with these 5 hacks you’ll have your loan secured with ease.
Let’s get started!


## Check your credit score
Are there really any loan problems you may have that don’t involve your credit score? The answer is yes but in regards to ‘getting’ a loan, your credit score may be the biggest contributing factor to why you were declined.
So before you get subjected to rejection from your lender, check out what your credit score might state before going ahead to apply for that loan. When you do this you can easily identify any issue or error that may cause your loan application to get rejected and take steps to correct them.


## Provide accurate information
It may seem too tempting to provide false information when asked, to make yourself seem more eligible for a loan but all that does is make you get rejected a lot faster.
Digital lenders use automated algorithms to process loan applications which rely on accurate data that is also consistent. Providing false or ‘slightly altered’ data can result in your loan application being rejected or delayed. Lies and technology are a bad mix.


So your best bet is to provide information that is accurate and consistent so your loans can be processed and approved faster.


## Reduce your debt-to-income ratio
A high debt-to-income ratio may indicate that you have too much debt in contrast to your income, which can lower your chances of getting approved for a loan.
Lenders also use your debt-to-income to determine the loan amount you would be eligible to receive. You stand the risk of only being approved for a smaller loan regardless of what you want if your debt-to-income ratio is too high.
Reducing your debt-to-income ratio by paying off all existing debts before applying for a new loan can greatly improve your chances of being approved for a loan by a digital lender. Read more about your debt-to-income ratio and its impact on your loan application process.


## Build your credit history
If you don’t have much of a credit history, now is the time to fix that. Consider taking out a small loan and making regular on-time payments to build up your credit history.
People who have no credit history, have no credit record and as such, have no credit score and lenders consider a lack of a credit history a big risk, as they have no way of knowing if the individual asking for a loan is creditworthy.
A good credit history is a sign of creditworthiness, so take out some time to build one and your loan approval chances will be improved. You’re welcome!


## Research loan options
Another hack that would increase your loan approval chances is dependent on you. We’ll tell you how…
In order to get a better idea of the loan product fit for you, you ought to do proper research on the loan options made available by your prospective lender. This helps you pick a loan option that is already tailored to your specific needs and qualification, making your loan approval all that much faster.
Remember, proper research of your prospective lender will save you from so many troubles!


If these hacks have been helpful to you — please share with your family, friends and even foes. Don’t forget to send us a message at hello@snapcash.ng and let’s get you started on your loan application process!


Do you want your loan approved? Try these 5 hacks!

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Featured Articles

Tinubu has approved loans for students — are you eligible?

How Small Loans Help Nigerians Navigate Tough Economic Times

Do you want your loan approved? Try these 5 hacks!