Businesses often fail because of insufficient capital to kickstart operations, sustain the business or scale. Despite the crucial role that MSMEs play in the economy, particularly in developing nations like Nigeria, they are usually disadvantaged when it comes to sourcing funds from big commercial banks.
Microfinance banks (MFBs), on the other hand, provide easier access to financial services including the grant of loans to a large segment of small businesses and enterprises who would otherwise have little or no access to these facilities.
In this article, we explore three MFBs where you can source up to five million Naira easily to fund your business or personal need.
Ren Money
Renmoney is a fintech lending company operating with a Microfinance Banking license in Lagos. The company is passionate about leveraging technology to deepen financial inclusion. They offer personal and business loans from ₦6,000 to ₦6,000,000 to employees and entrepreneurs; as well as high-interest savings and fixed deposits.
With Renmoney, you can apply for a loan of ₦6,000 – ₦6,000,000 without collateral and repay in 3 -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.
Features and benefits of Ren Money Microfinance bank loan
Fast and convenient loans from ₦6,000 – ₦6,000,000
Flexible repayments from 3 – 24 months
Money in your bank account in minutes
Lower rates and longer tenure on your next loan
No paperwork
No collateral or guarantor needed
No hidden charges – you always see your loan terms before you commit
AB Microfinance Bank
AB Microfinance Bank offers business owners of Small and Medium Size Enterprises the opportunity to access loan products in a quick, transparent, and efficient way. Prospective borrowers do not need to have saved any money with AB Microfinance Bank before applying for a loan. All that is needed is an existing, viable business.
Features and benefits of AB Microfinance Bank loan
Loans from NGN3,000,000 to NGN20,000,000 for your existing business
Competitive interest rate starting from 3.0% monthly on reducing balance
Disbursement fee of 1.0% of the loan amount
Maturity period from 6 to 24 months with equal monthly installments
A broad range of collateral items accepted
Upon submission of all required documents, loan disbursement is guaranteed within 3 working days
LAPO Microfinance Bank
The LAPO Microfinance Bank “SME Loan” is a credit product designed specifically to support Small and Medium Scale Enterprise (SME) operators in Nigeria.
Licensed by CBN in 2010, LAPO Microfinance bank has focused on developing small businesses in Nigeria. With over 1 million entrepreneurs empowered, LAPO microfinance bank has provided entrepreneurs with reliable microfinance services.
Irrespective of the sector your enterprise is operating, LAPO MfB is willing to support you with credit facility up to N5,000,000 to expand the enterprise at reasonable interest rates.
Features and benefits of LAPO Microfinance Bank SME loan
No collateral
Access to funds for business expansion
Flexible repayment structure
Facility amounts up to N5,000,000
Duration of 12 months
Training on basic financial management, business planning, and customer relations
Expert financial advice is available when you need it