Businesses often fail due to insufficient capital to start operations, support the business, or grow. Despite the crucial role that MSMEs play in the economy, especially in developing countries like Nigeria, they are generally at a disadvantage when it comes to raising funds from large commercial banks.
Microfinance banks (MFBs), on the other hand, provide easier access to financial services, including providing loans to a large segment of small businesses and businesses that would otherwise have little or no access. at these facilities. In this article, we explore three MFBs where you can easily find up to five million naira to fund your business or personal needs.
READ: Microfinance Banks Record 82% Increase in Loans in 2020
Renmoney is a fintech loan company operating under a Microfinance Banking license in Lagos. The company is passionate about using technology to deepen financial inclusion. They offer personal and business loans of 6,000 to 6,000,000 to employees and entrepreneurs; as well as high interest savings and term deposits.
With Renmoney, you can apply for a loan of 6,000 to 6,000,000 unsecured and repay it in 3 to 24 months. Monthly interest rates range from 2.4% to 9.33% and the maximum Annual Percentage Rate (APR) is 35.76%. No other fees are charged.
READ: Nigerians will soon use their gold as collateral for loans – Minister
Features and Benefits of Ren Money Microfinance Bank Loan
- Quick and convenient loans from 6,000 to 6,000,000
- Flexible repayments from 3 to 24 months
- Money in your bank account in minutes
- Lower rates and a longer life on your next loan
- No paperwork
- No collateral or guarantor required
- No hidden fees – you always see your loan terms before committing
READ: CBN disburses N50 billion loans through MFB’s IT platform
AB microfinance bank
AB Microfinance Bank offers small and medium-sized business owners the ability to access loan products quickly, transparently and efficiently. Prospective borrowers do not need to have saved money with AB Microfinance Bank before applying for a loan. All it takes is an existing, viable business.
READ: NDIC to liquidate 42 microfinance banks
Features and Benefits of AB Microfinance Bank Loan
- Loans from NGN 3,000,000 to NGN 20,000,000 for your existing business
- Competitive interest rate from 3.0% monthly on declining balance
- Disbursement fee of 1.0% of the loan amount
- Maturity of 6 to 24 months with equal monthly payments
- Wide range of collateral items accepted
- Upon presentation of all required documents, loan disbursement is guaranteed within 3 working days.
READ: How To Pre-Qualify For Personal / SME Loans From Your Banks
LAPO Microfinance Bank
The LAPO Microfinance Bank âSME Loanâ is a credit product designed specifically to support operators of small and medium enterprises (SMEs) in Nigeria.
Licensed by CBN in 2010, LAPO microfinance bank focused on small business development in Nigeria. With over one million empowered entrepreneurs, LAPO microfinance bank has provided entrepreneurs with reliable microfinance services.
Regardless of the industry in which your business operates, LAPO MfB is willing to support you with a credit facility of up to N 5,000,000 to grow the business at reasonable interest rates.
READ: CBN takes action against bad debtors from other financial institutions in new circular
Characteristics and advantages of the SME loan from LAPO Microfinance Bank
- No warranty
- Access to funds for business expansion
- Flexible repayment structure
- The facility amounts to 5,000,000 N
- 12 month term
- Training in basic financial management, business planning and customer relations
- Expert financial advice available when you need it