Business Ideas Can I get bank loan as a student for business?

[Bookwormlux]

I am just wondering if it is possible for somebody to be able to get the loan from their bank as a student . This is becoming necessary for me because I am beginning to work on my business plan and seeing a lot of possibilities in it , but the issue of capital has made me to not move forward with the plan as I intend to do . This is why I am asking here to see if it is possible for one to get enough loan from bank even as a student, or what alternative should I use in a situation like this .

Do you think that a bank can agree to lend a student to higher amount of money who's the student would use for business at all ?

If they ever get to give out this loan to a student and they realise later on that this student will not be able to repay the loan, is there a possibility of them letting go of the money ?

I have decided to ask this question here because , I know that a lot of successful business people have gotten to where they are today because they got a loan at the beginning when they started.

 

[Kingsley]

Getting a bank loan as a student here in my country is not a usual phenomenon as the banks here will only consider those who own businesses with a very viable standing. There was I time I went with a friend to a microfinance bank to make an enquiry on how they give out their loans to their customers. We were meant to understand that they do not issue out loans for start up purpose rather they give out loans to salary earners and to those with a proven track records of having a successful financial records and this we both understood very well. The bank is not a charity home rather it is also a business venture and what whatever money they trying to issue out they also want to ensure they make good returns out of it and in a worse case scenario thay want to make sure they recover their profit from the business transactions that they carry out with their customers. But I know in other advance countries where they have a more comprehensive data base system it will be much more easier for a bank to issue out a loan to students and retrieve the loans when the student starts working.

 

[sincerem]

Students don't normally have a high level loan offer, I've tried it severally when I was in school, I got very low amount of money from the mortgage bank, such made me not to look up to the mortgage bank or any place at all to seek loan. When they check your credit score or history, and discover that money isn't pulling out huge from your account, they'll reserve or give you the amount which they feel you can afford to pay. I learned about 'Easybuy, which offers you some products like the phone and another other device to buy on loan term and pay in the duration from 1-6 months, it just depends on your source of income. When they see that you earn money on a monthly basis, they'll definitely offer you loan since you can repay the loan at ease. If you fail to say when the installment repayment is over due, you might be unfortunate to find your device being locked out and not being accessible. Because they hold the imel or security that can make your device useless and not being effective for accessibility. That's why it is better not to take their loan than owing them, already you'll deposit some percentage before

 

[Mika]

You can get a loan from private lenders, however, they charge such a high-interest rate that you will not be able to pay their interest rate, even if you manage to pay interest anyhow, paying back the principal amount will be very difficult. You can get a loan from micro-financial institutions where you do not need collateral, however, they also have comparatively higher interest rates. You can get a loan from the banks, however, you need collateral. Your business also need to be registered with the local authorities because banks trust only registered businesses, Your business needs to be already functional for you to apply for the loan.

 

[Sotherefore]

It will depend on so many things , if you are a student in the higher institution well I believe the bank might consider to give you a loan if you asked for it but the most important thing is the collateral because you can't possibly get a loan for any reason when you do not have anything to keep in place , As a University student in this condition getting a loan with a collateral will be quite easier .

I don't really think the bank will give you a loan if you're still in secondary school because they will just consider you as a minor even if you have a something to keep for . Yeah they will be expecting that you should be concentrating in your education as it is the most important thing at that period of time.

Well normally a student shouldn't really think of starting a business except it is a business that can be done on spare time and something that won't interfere with your academic activities because starting up a business as a student can lead to a lot of distraction which may not really be favorable for your own academic areas and field .

 

[kayode10]

It can be very difficult for you to secure a loan from financial institution to start up your business as a student.

Financial capability is one of the criteria the financial institution looks into whenever they want to give out loan to an entrepreneur.

They want to know if you are capable of paying back the loan together with the interest you are going to obtain from them.

Since you are a student, financial institution believe that you don't have any source of income except the one you get from your parents.

Even if you have a proof that you are running a part-time business with your study, it may not be enough to convince them to Grant you a loan with a desire to kick-start your business.

The best thing you can do if you need a capital to finance your business idea is to turn onto your friends and family. You need to ask them to invest into your business and promised them a good return on investment within short time.

You need to be well articulated in your presentation when you are teaching them the idea of setting up your business. Some of them are going to turn you down but that shouldn't be a problem for you.

 

[Chibson]

As a student, it will not really be easy for you to get a bank loan in order to start a business because there are a lot of things banks put in place to make sure that people who are getting loans will probably pay back in due time.

First of all, the level of money that would have been into your account before you can be able to get a loan must be big, and you must have a solid collateral for a bank to be able to give you a loan to start a business.

Banks usually remove the loans on monthly basis depending on the amount of income you have. They will clearly state these when they want to give you a loan in order not around losses.

You will also have things like landed properties to be used as collateral before a bank will you agree to give you a loan.

Honestly it will be very hard for you to get a loan from a bank as a student except you go to a traditional lender or using some loan apps which will probably put you into trouble.

It is quite very important for you to see if you can actually borrow from family or friends before starting a business as a student.

 

[Abigael]

I think that the requirements that a bank of loan lending institutions have are the same for everyone, including students. So if a students meets all the requirements to get the loan, then they will definitely be given. These requirements include;

1. Having a good business plan - a student who has a good business plan that meets all the analysis to success will qualify for a loan. Therefore, a student should work hard at proving that their business is well planned and has high demand in the market.

2. Ability to pay back the loan - a student who is financially well off and can show it through assets and a good credit history will definitely qualify for the loan. There are students who have good part time jobs or side businesses that earn them more. So they are more capable of being trusted by loan lending institutions.

3. Having a positive credit history - the credit history of a student should not be negative as that will lead them to be rejected by the loan lending company. So a student who wants business loans should make sure that they have cleared their credit record.

If a student meets all these requirements, then they will get business loan. It is unfortunate that most students are not yet this qualified and that is why they rarely secure business loans. Most will choose to start business with the education loans that most governments give.

 

[Kendy]

As a student, it is very possible to get a bank loan but in most cases I have seen the loans that is always been accessible to student is education loan and it is always mostly without any interest rate. As a student, before getting a loan in any public financial institution, it might be difficult for you to assess the loan especially if you're not a working class or you do not have a feasible or registered business which is licensed under the corporate affairs commission.


Students may not really be given loans as their source of repayment may not be ascertained or guaranteed and the banks will not like to take such risk. I think as a student, before you can access a loan it is either you have a feasible business or you have a collateral that would be equivalent to the amount you're opting for and apart from that, there are some vital documents that some students may not even be in possession and without that, the ability to assess a loan would be impossible. It is always advisable for student to roundup their academic activities before thinking of getting a loan because the effect or pressure of repayment can impede with their academic activities.

 

[Rachael]

Getting loan as a student for business implies you do not have any profitable source of income. It would be difficult to assess a loan in my country as a student because loans from the bank are majorly given to working class people or those who have an already existing business which is registered and licensed by the government. No financial institution would be willing to give out loans to someone who has no possible alternative for repayment and if for instance, the loan is approved, how long would the repayment date last and how fast would you be able to set up a business and then strike a balance between earning profits and repaying the loans equivocally.

Without a good credit history as well, it would be difficult to get a loan and most banks only issue education loans to students or grants for small scale businesses. As a student, you might devise other means to get loan and it could be through registering for funds to set up a small scale business. In my country, the government has tried in regards to giving loans or empowerment to some small scale business and this would be the best opportunity for students.

 

[Setho]

The issue of getting loans is actually a very complex one and something that you have to be very careful whenever you are trying to apply it . A lot of countries can be able to give you a loan by the simple credit score system . But then before you must have built a credit it means that you must have been collecting loans or using overdraft from other microfinance banks which is something that is not really popular in a lot of countries as well.

Based on the regulations in my country for you to be granted a loan you need to have a verified means of income where you can be able to repay it. This could be ranging from things like you having an already established business or having a salary account and all this is usually not familiar with people who are students .

You will also need to provide collateral which is something that is me and you the money that you collected in case you default and as a student I don't think you can be able to afford that .

If you want to start a business and you will need money in order to do it I think you will have to consult other sources of funding other than taking loans especially from commercial Banks .