7 Reliable Microfinance Banks In Nigeria
Hello and welcome to another interesting session on the blog; microfinance banks in Nigeria. For a long time, I wondered what Microfinance banks actually were. I was confused as to why there were commercial banks and the need to still have microfinance banks. It beat me so many times as to why all banks couldn’t perform microfinancing services to their customers and this compelled me to do research on the actual aims and functions of microfinance banks in Nigeria.
Definition of Microfinance
As the word suggests, “micro” means minute or minuscule, meaning something in a very small quantity; and the word “finance” means to provide funding for an individual or enterprise. Hence, microfinance means providing minute or minuscule funding to individuals or enterprises. There are many microfinance banks in Nigeria performing such functions.
What then are microfinance banks?
Microfinance banks in Nigeria are banks established solely for the purpose of providing small loans to disadvantaged individuals and small businesses/ enterprises who otherwise would not have access to them. Microfinance banks in Nigeria do this because though these amounts are quite small, these individuals would ordinarily be unable to assess these loans due to certain requirements they do not possess.
Now if you are looking for reliable microfinance banks in Nigeria organization for a small business loan to boost your business revenue or pay school fees, or settle a debt, then you certainly need to read on. In this article, I would highlight 7 reliable microfinance banks in Nigeria that would be beneficial to sort out your financial needs. There is no particular order to this list.
List Of Microfinance Banks In Nigeria
1. AB Microfinance Bank
AB microfinance bank was set up by foreigners and though one of the oldest, it equally doubles as one of the best around. Tested and trusted, I must say. When you loan from AB microfinance bank, they don’t just lend you their money, they ensure you make good use of it to ensure that the repayment wouldn’t be an issue. Their major aim is to equip startups and small-scale businesses and entrepreneurs.
2. LAPO Microfinance Bank
With several branches all over the country, despite being set up in 2010 and finally licensed in 2012, LAPO has proven to have its customers at the heart of its existence. They boast of efficient customer service and try to meet up each customer’s demands in the shortest space of time.
3. REHOBOTH Microfinance Bank
The Rehoboth Microfinance Bank was set up by business-minded people with other business owners in mind. It is one microfinance bank that constantly checks upon its customers to see how well they make returns from the loans collected to ensure repayment is easy for their customers. With its head office at Onipanu, Rehoboth keeps seeking ways to ensure its customers get the best of its service.
4. ADDOSSER Microfinance Bank
Addosser is one of the best microfinance banks due to its repayment plan that offers a lesser interest rate in comparison to other microfinance banks. Its head office is situated in Lagos and this bank boasts of credible experience that helps it meet its customers’ base demands.
5. FBN Microfinance Bank
Naming this bank as one of the most reliable wouldn’t be too much. The major aim of this bank is to come in as a savior and salvage the situation for businesses that are on the verge of collapsing. Sounds great, doesn’t it? This bank is an ancillary of First bank and one of the top microfinance banks to receive national recognition for its foremost role of redeeming businesses.
Someone’s business is at the verge of collapse? Please reach out to FBN microfinance bank.
6. ACCION Microfinance Bank Limited
Another effective and efficient microfinance bank you can trust is Accion, this Microfinance Bank was recognized by the Central Bank of Nigeria in 2007 and has been in the business of dishing out loans to small business owners and individuals.
7. Microfinance Mutual Trust
The microfinance mutual trust was set up and registered in the year 2012. This bank’s major targets are small and medium-sized businesses, and business enterprises owned by businesswomen; with a mission to equip them until they become successful commercial enterprises.
The major aims of all microfinance banks are to create employment opportunities; thereby reducing the rate of poverty, boosting revenue for small and medium scale businesses, and granting loans in minute forms that are easily repayable. If you fall into any of these categories or know someone who does, kindly take the step and reach out to any of the aforementioned banks to have your needs met.
Till I come your way again, stay informed!