Nigerian student loan repayment capped at 10% of graduate's income

Graduates in Nigeria will have their loan repayments capped at 10% of their gross monthly income, a measure designed by the Nigerian Education Loan Fund (NELFUND) to prevent excessive financial strain.

The application process for these student loans is outlined on the NELFUND portal. Prospective beneficiaries must first visit the portal and click "Apply Now." The system requires verification of JAMB and NIN details, followed by the completion of a personal profile. This profile necessitates providing a Bank Verification Number (BVN) and a school matriculation number before a loan request for institutional fees or upkeep can be submitted.

Registration and verification steps include entering a National Identification Number (NIN) and JAMB registration number. Applicants then select their public tertiary institution, input their matriculation number, and verify their date of birth. A crucial step involves creating an account by entering an email address, setting a password, and clicking a verification link sent to that email.

Completing the profile requires adding a current phone number and residential address. Applicants must also input their BVN and standard commercial bank account details. The fund explicitly notes that microfinance or digital-only fintech wallets, such as OPay or Moniepoint, are generally not accepted. Once the profile is complete, it should be saved before proceeding to the loan request.

Submitting the loan request involves selecting the loan type, prioritizing institutional charges (tuition) first, as an upkeep stipend loan requires a prior application for institutional fees. Applicants must upload required documents, such as their admission letter. Finally, they review the declaration, agree to the terms and conditions, and click "Submit Application."