NELFUND Loan Repayment: When It Starts, How Much and What Happens on Default

NELFUND repayment starts late, is taken as a fixed share of income, and is enforced through a bank-linked mandate. This page summarizes the repayment rules in NELFUND's published guidelines. The loan agreement you sign is the binding document, so read it before accepting.

When repayment starts

Beneficiaries begin repaying two years after completing the National Youth Service Corps (NYSC) programme, or two years after exemption from it. You do not repay while studying.

How much and how

• Employed: your employer deducts 10 percent of your salary at source and remits it to NELFUND. The guidelines call this the PAYE option.
• Self-employed: you pay 10 percent of your total monthly profit yourself. This is the income-based repayment (IBR) option. Within 60 days of becoming self-employed you must send business details such as name, address, registration documents if any, bankers and partners.
• Voluntary payments: you may repay extra at any time.

Duties while repaying

• Tell NELFUND your employment status every quarter after NYSC.
• Report a new job within 30 days of starting with the new employer.
• If you have no job and no income, you can ask for an extension with a sworn statement.

What happens if you default

The guidelines list these actions, which NELFUND may take one or several at a time: warning emails and texts, restricting access to credit from Nigerian financial institutions, publishing a list of persistent defaulters, triggering the Global Standing Instruction to reach credit balances in your accounts, and legal action. The loan's performance is reported to the CBN credit risk system and private credit bureaus, so a default shows on your credit record. See GSI and loan recovery.

Interest and other terms

The guidelines summarized here do not state an interest rate. Guides describe the loan as interest-free, and one third-party guide says the loan can be written off on death or permanent disability. Confirm both in your agreement or with NELFUND, since neither appears in the sections reviewed.

A plainer walkthrough is in repayment rules. Go back to the overview, or check eligibility.

Practical checklist

Use the official portal for current status, verify your information carefully, save confirmation details, and avoid third parties requesting payment.

Related guidance

See eligibility, application guidance, common issues, repayment and official links.