Microfinance bank is likewise know as Micro-credit, were established by central Bank of Nigeria CBN to assist individuals (salary earners), petty traders and small businesses in securing loans.
The aimed of Microfinace bank in Nigeria is to stimulate local production and boosting non-oil export for economic development,
Microfinance Bank “SME Loan” is a credit product designed specifically to support Small and Medium Scale Enterprises (SMEs) operators in Nigeria. Irrespective of the sector your enterprise is operating.
At an affordable interest rate, Nigerian SMEs can now maximize their potentials with the SME Loan for the expansion of their businesses.
You can also read: Full Lists Of Commercial Banks In Nigeria
Who can access MFB Loan
For a potential client to qualify to be targeted by a microfinance bank loan, it should have the following qualities.
1. For Small and Medium Scale Enterprises, business must also be active for at least one year and operating from the same location for at least six months.
2. Petty traders and individuals should able to provide Guarantors who must be financially stable and at least 25 years old. It is the duty of the Guarantors to ensure that the loan is paid back when due.
Because where there’s a default in repayment by the customer, the Guarantor will be required to repay the loan amount.
The documents required for a Microfinance loan include:
1. Loan application form
2. Excellent Business Proposal (for SMEs)
3. Letter of Application (for individuals)
4. Valid means of identification (National I.D card, International Passport, Driver’s License)
5. Copy of recent utility bill
6. 4 recent passport photographs
7. Evidence of business location
Access to funds for business expansion
Access to other loan products
Flexible repayment structure
Training on basic financial management, business planning and customer relations
Low interest rate
Expert financial advice available
The number of microfinance banks licensed in the country by the Central Bank of Nigeria stood at 940 as of February 13, 2020.