Microfinance Banks are financial institutions duly licensed by the CBN to perform the business of providing microfinance and other financial-related services.
Before the increased of microfinance banks in Nigeria, many businesses under small and medium ventures find it difficult to access funds which has affected businesses and means of livelihood. Even when the loans are available the interest is so high that no business owner will want to digging for. Nevertheless, there are some microfinance banks that offer loans at reasonable interest in Nigeria. These top microfinance banks in Nigeria are recommended for small business loans.
Small business loans can cover any type of business like real estate, equipment, payroll or nearly any need. For this guide, we selected the top microfinance banks to obtain loan in Nigeria with transparent rates and reasonable repayment terms. Learn more about these top microfinance banks in Nigeria and pick the one best for you.
These microfinance banks offers business loan structured to provide access to loans of up to N50m without collateral. Some of them gives maximum and easy access to the loan through digital application forms and automated repayment process. And the repayment plan can be structured to suit your business and flexible for up to 1 to 2 years.
Top Microfinance Banks to Obtain Loan in Nigeria
If you need financial support for your business, Here are the top microfinance banks to obtain loan in Nigeria that can offer you a top up after few months if regular repayments are made:
1. LAPO Microfinance Bank
LAPO Microfinance Loans is from 2.5% nominal interest rate. The Loans at competitive interest rates. LAPO Microfinance offers loans from NGN 10,000 – 5,000,000 for ordinary consumption and for small or large business projects, asset, building etc.
The LAPO Microfinance Bank “SME Loan” is a credit product designed specifically to support Small and Medium Scale Enterprises (SMEs) operators in Nigeria.
Other LAPO Microfinance Bank loans product are designed to operate on a group (union) methodology. A union is a self-selected group of people who access loans individually, but have group guarantees.
LAPO Microfinance has transformed into one of Nigeria’s top microfinance banks to obtain loan, thanks to its consistent effort at ensuring that low-income households in Nigeria are economically empowered through the provision of “responsive financial services.
2. NIRSAL Microfinance Bank
NIRSAL Microfinance Bank is a national microfinance bank with over 115 branches all over Nigeria, The branches are committed to delivering exceptional loan disbursement analysis.
NIRSAL Microfinance Bank as one of the top microfinance banks to obtain loan offers various loans plan whether micro savings, micro loans or school targeted loan.
With over 115 branches all over Nigeria, they are committed to delivering exceptional financial services to all parts of the country.
NIRSAL Microfinance Bank AGRIC SMALL MEDIUM ENTERPRISE SCHEME (AGSMEIS) enables you to access up to N3M at 9% per annum from the Agric, Small and medium enterprise scheme (AGSMEIS), an initiative from Central Bank of Nigeria (CBN).
The ANCHOR BORROWERS’ PROGRAM (ABP) Access the CBN’s Anchor Borrowers Program intended to create a linkage between anchor companies involved in the processing and small holder farmers(SHFs) of the required key agricultural commodities.
3. AB Microfinance Bank
AB Microfinance Bank expertise and international standards assure clients of quality service and delivery. Loans currently range from N15,000 to N5,000,000; maximum maturity is 18 months and larger loan sizes. Repeat customers can apply for up to N5,000,000 under micro loans.
4. BOI Microfinance Bank
BOI Microfinance Bank Nigeria is a subsidiary of Bank of Industry Nigeria. It offers a broad range of financial services to micro, small and medium-sized enterprises and various low income earners both as individuals and as groups.
BOI Microfinance Bank is fully committed to improving entrepreneurs businesses by providing easily accessible loans and good business advices to help improve and sustain long term growth. It also provides various saving deposits for all level of customers.
It is a limited liability company duly incorporated in Nigeria under the 2002 Companies and Allied Matters Act, and is regulated by the Central Bank of Nigeria. Being a subsidiary of The Bank of industry the bank has a very strong financial backing and has been tasked with improving access to financial services in Nigeria.
Read Also: How to Apply for FirstBank Loans (Steps by Steps)
5. Assets Microfinance Bank
Assets Microfinance Bank Limited, is a financial institution set up to empower Nigerians with greater financial freedom by making access to loans faster, simpler, safer and more affordable.
Assets MFB is licensed by the Central Bank of Nigeria to provide personal, business and payday loans to Nigerians living in Lagos.
Why Assets Microfinance Bank is among the top microfinance banks to obtain loan in Nigeria is because it offers artisans, small business owners, entrepreneurs, etc., easy access to loans in a quick, transparent and efficient manner. This loans currently range from N50, 000 – N499, 000.
The Macro Loan in Assets Microfinance Bank offers small business owners, entrepreneurs, etc, easy access to loans in a quick, transparent and efficient manner. This loans currently ranges from N500,000 – N1, 000, 000.
6. ACCION Microfinance Bank
ACCION Microfinance Bank is very similar to LAPO in that they are both national microfinance banks. It was established to “empower micro-entrepreneurs and low-income earners by providing financial services in a sustainable, ethical and profitable manner.”
The ACCION Microfinance Bank offers different types of loans, including loans to small businesses, homeownership loans, education loans and more. Users can also get quick loans of up to N150,000 either through ACCION’s mobile banking or USSD channels.
7. BAOBAB Microfinance Bank
BAOBAB Microfinance Bank offers a range of easily accessible loans to grow and expand your business.
The minimum loan amount is N20,000 and a Maximum amount of N50,000,000. Both depend on the borrower’s repayment capacity assessed based on verifiable business inventory and other criteria. The disbursement is within 72 hours, repayable in 1 to 24 month. BAOBAB Microfinance Bank offers loans for businesses that are already in existence/operation, and housing/house improvement loans.
To access BAOBAB Microfinance Bank loan facility, you must have a business, the location must be within our bank’s lending area (Lagos state, Oyo state and Ogun state) and it must have been in existence within a specific period. The loan doesn’t take longer than it ought to as long as the necessary requirements are adequately met (less than 3 working days). BAOBAB Microfinance Bank interest rate differs depending on the loan amount. However, it is very competitive.
8. KUDA Microfinance Bank
This is another top microfinance banks to obtain loan that has taken the Nigerian financial services industry by storm. Also launched in 2016, the company started out as Kudimoney and offered online-only savings and digital lending. Since then, the company has transformed to KUDA, raised over $90 million and popularised itself among the youth as “the bank of the free”.
Right now, KUDA Bank is busy positioning itself as a major microfinance bank. And new users are signing up every day, thanks in part to its simplified banking app that makes it very easy to register and get access to a wide array of banking services.
9. Fina Trust Microfinance Bank
Fina Trust Microfinance Bank provide quick loans, salary advance, SME loan, education loan, financial asset financing, etc. The company also offers various kinds of accounts services including savings, current accounts as well as fixed deposit accounts.
10. Mutual Trust Microfinance Bank
Mutual Trust Microfinance Bank is one of Nigeria’s leading microfinance banks. Mutual Trust Microfinance Bank prides itself in providing excellent financial services with the use of cutting edge technology, and of course its highly experienced workforce.
The processes are so easy, such that customers are able to complete their loan application in under ten minutes.
Also, loan applications are analysed and approved in ten hours. And the best part is that the Mutual Trust Microfinance Bank has a very flexible repayment plan that allows customers to easily offset their loans without stress.
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