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Like I mentioned on the list of approved Microfinance bank in Nigeria, these banks are into the business of giving out money to make more money through interest and as such, they are looking for customs to bank with them and also make use the loan they are willing to give out.
As with every business, there is a requirement before you can get a loan in any microfinance banks in Nigeria. The requirement may differ but they all have common requirements which will be listed out on this page.
Before you request a loan in Microfinance banks in Nigeria, you should ask the different types of loan they offer so that you can make an adequate decision. For example, some Microfinance banks offer loans such as;
Working Capital Loan: Designed for micro-entrepreneurs and small business owners who desire to get a loan for business purposes to enhance their businesses. This type of loan has flexible collateral requirements.
Asset Finance Loan: When you get this loan from microfinance bank, it gives you the opportunity to own that asset you have always longed for either for Business or for Personal use such as machines, Deep freezers, personal computers and notebooks, generators, washing machines, household furniture, gas/electric cookers, electronic and electrical appliances. The equipment is purchased in the bank’s name and transfer of ownership of the equipment financed will take place after full lease payment.
Consumer Loan and Group Loans: This is designed for workers who want to use the facility for personal, family, or household purposes, or for consumable items like household appliances and payment of school fees, while Group loans are designed for micro-entrepreneurs, market women, self-help groups and associations that are active in the business.
Requirement to get a loan in Microfinance bank
Account opening requirements
Account opening with the Microfinance bank is necessary.
- 2 recent passport photographs
- Copy of a valid identity card (Driver’s license, National Identity card, International Passport and Voter’s Card)
- Utility bill (paid within the preceding 3 months)
- Initial deposit
- Completed KYC form provided by the bank
The borrower may also require more than one guarantor depending on the loan size and other loan considerations. The guarantor must provide the following:
- Valid means of identification
- 2 recent passport photographs
- Utility bill (within the preceding 3 months)
This may not apply to small business loans for petty traders and individuals. Your collateral must equate the amount of loan you are applying for or supersede it, but it cannot be lesser in money value to the loaned amount.
To get loan from Micro-finance bank in Nigeria, all loan applications undergo an on-site assessment by a lending staff prior to a loan decision.
- Not all Microfinance bank requires mandatory deposits/savings and no cash collateral required.
- Not all Microfinance bank requires audited financial statements.
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