Top MFB Loan Providers in Nigeria

In Nigeria, Microfinance Banks (MFB) are like small banks for everyday people and businesses. They offer loans, savings accounts, and sometimes insurance. By providing financial services to those who traditional banks often overlook, MFBs are essential for bringing more Nigerians into the financial system. This financial inclusion fuels economic growth, empowers underserved populations, and helps reduce poverty throughout the country. In this article, we discuss the top MFB loan providers in Nigeria, with license under the Central Bank of Nigeria.

Top MFB Loan Providers

1. FCMB Microfinance Business

This is a branch of the First City Monument Bank of Nigeria, aiming to promote financial inclusion amongst the smaller population without access to financial services from national banks. FCMB Microfinance Business offers a loan service called E Don Beta. It is a group lending platform specially for women in business especially in rural areas who lack access to financial services. It functions based on a self-selected group of members, with a minimum of 5 and a maximum of 30 individuals, each accessing loans independently but with group members serving as guarantors.

Features:

• Individual lending but group liability.
• Minimum of ₦30,000 and maximum of ₦200,000. In your first loan cycle, you have a maximum restriction of ₦100,000.
• Duration: 6 months
• 1 week grace period
• Weekly repayment

Benefits:

• Fast and easy access to finance
• No collateral required
• Flexible repayment structure
• Low interest rate
• Excellent customer service

Requirements:

• Duly completed loan application form.
• 1 guarantor
• 2 recent passport-size photographs.
• Current utility bill.
• A valid identification such as a National Driver’s License, or an International passport, or a National ID card, or a Voters Card (original copy to be sighted by Account Officer) or Third party identification.

To apply for the FCMB Micofinance Business loan, visit ant FCMB branch near you or call 07007777778.

2. VFD Microfinance Bank

Offers a range of services including savings accounts, loans, and other financial products designed to meet the diverse needs of its clients. VFD is one of the top MFB loan providers that offers loans to salary earners, entrepreneurs and businesses, with juicy interest rates, flexible repayments and fast processing. Loan offers by VFD MFB are as follows:

• Consumer Loans
• Overdraft Facilities
• LPO Financing
• Invoice Discounting

Consumer Loans: These are further categorized into four, namely:

• Sale, Lease and Buy Back: This is a unique loan facility where customers can secure the required loan amount for a specified duration while retaining possession and usage of their asset. Upon full repayment of the loan, ownership of the asset reverts back to the customer.
• Bridge Financing: This type of loan allows you to get access to a loan without a collateral. All you must do is provide a guarantor who is in paid employment under a reputable organization and holds a senior position/office.
• Asset Finance: This enables customers to purchase assets such as cars and properties while paying installmentally. Customers make an initial 30% deposit of the total cost of access, while the bank pays the rest, and customers continue paying the bank. Here, the bank and the customer jointly own the asset until the customer has completed the payment and is then allowed to take full possession of the asset.
• Corporate Cash Advance: This is a type of loan available to staff. It helps to cover for emergencies and repayment is made when salaries get paid.
• Employee Loans: This offers company staff financial support to meet emergencies. Here, the company signs an agreement to remit the amount due to the bank while paying the staff whatever is left.

3. NIRSAL Microfinance Bank

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) offers non-interest loans to support agricultural and small-scale businesses in Nigeria. These loans aim to stimulate economic growth and empower entrepreneurs as well as agro-allied businesses. NIRSAL MFB offers three major types of loans, namely:

• Amazon Loan
• On-Balance Sheet Lending (OBSL)
• Agric Small Medium Enterprise Scheme (AGSMEIS)

Amazon Loans: These are loans available exclusively to women and women-owned businesses in groups of 5-10 members. It is targeted at small-scale and micro businesses, traders as well as artisans looking to purchase small equipments for their businesses.

Features:

• Discounted interest rates
• Loan amount of up to ₦1,000,000
• Group members act as guarantors for each other.

On-Balance Sheet Lending (OBSL): This loan is not the same as that of the Central Bank of Nigeria intervention fund, but by depositors’ funds. It is available to SMEs, petty traders, individuals with legit incomes, business owners and individuals who are into agric-affiliated business ventures as well as individuals and business owners looking to purchase household or equipment or consumer assets. The minimum loan amount for OBSL is ₦50,000 and runs up to as much as the lender is capable of repaying.

Agric Small Medium Enterprise Scheme (AGSMEIS): A type of loan that aims to assist agricultural businesses especially with the financial support they need in order to foster economic growth, food security and employment.  This loan has a threshold of ₦10,000,000.00 as well as a tenor of seven years and a moratorium of six months for mark-up and eighteen months for principal.

4. LAPO Microfinance Bank

Lift Above Poverty Organization, LAPO is an NGO microfinance bank that has been helping people for a long time now. It offers financial services to SMEs, low income households as well as micro businesses. LAPO has a range of loan offers, namely:

• SME Loans: These are loans specifically for Mall and Medium Enterprises looking to grow their businesses. This loan has a threshold of ₦5,000,000 with a tenor of twelve months.
• Agricultural Loans: A loan type that helps to boost agricultural practices by availing farmers the necessary financial support that they need to increase overall crop production. It ranges from ₦30,000 to ₦1,000,000.
• Regular Loans: This is a type of loan where a group of self-selected members are able to get individual loans but act as guarantees for each other.
• Asset Loan: Is a type of loan that allows businesses who are already clients of LAPO MFB to purchase assets that will help them boost their businesses. These assets may includerefrigerators, generators and other small machines.
• Public Sector Loans: Are types of loans that are made available to public service officers who belong to a payroll system called IPPIS (Integrated Payroll and Personnel Information System).
• Education Loans: These loans are categorized into two, School Fees Loan and School Improvement Loan. The school fees loan enables clients to make up for lapses where they are unable to meet the needs of their children’s/wards’ school fees. While the school improvement loan is made available to school owners who are suffering a financial setback.
• SUFEN (Supporting Female Entrepreneurs) Loan: This is a loan product specifically for women in business.
• Special Loan: This is a type of loan provided to those who already are regular loan clients. It aims at further facilitating the expansion of their businesses.

5. Regent Microfinance Bank

A privately owned MFB incorporated in July 2014, began operating in November of the same year. Regent MFB offers various loan products to clients of different climes. Regent MFB loan includes:

• Quick Cash Loan: This is an individual loan which ranges from ₦5,000,00 upwards. It usually requires a collateral.
• Quick Loan: Also called the 24hrs Quick loan, this loan is open to civil servants with a verifiable paid employment. It does not require a collateral.
• Market Women (Micro): This is a loan offer available for market women with small businesses. It helps to cater for needs that may arise with respect to purchase of mini equipments.
• Contract Financing: This is an LPO loan that requires collateral or bank agreement (in the absence of a collateral asset).

The information provided above about these top MFB loan providers is not exhaustible. It is important to visit their websites to learn more about the various loan products that they offer.