How to Apply For A Loan From Microfinance Banks In Nigeria

2022/04/28 - 04:04 pm

Microfinance Banks were established to assist individuals, small and medium scale enterprises (MSMEs) in obtaining credit facilities for personal use or their businesses.

Borrowers of Microfinance loans pay interest on them. The interest rate and the tenure can range from 3%-6% and 1-12 months, respectively, depending on loan size.

What to do before applying for a loan from Microfinance Banks in Nigeria;

– Open an account with the bank. Most banks require prospective borrowers to have an account with them which has been active and serviced for at least six months.
– For business owners, make sure you have done rigorous research about the business.
– The business must exist for at least one year and operate from the exact location for six months.

Documents required when applying for a Loan;

– Loan application form
– Valid means of identification
– Copy of recent utility bill
– Recent passport photographs
– Evidence of the business location
– Bank statements and business records
– Collaterals (Not in all cases)