Top 10 Best microfinance banks in Nigeria
Microfinance banks offer financial services similar to commercial banks and other traditional banks. There are, however, numerous distinctions.
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The size is the most noticeable difference. Microfinance institutions are significantly smaller than traditional commercial banks. While the latter has a larger structure and many branches throughout the country, a microfinance bank may only have up to five.
One thing to keep in mind about microfinance banks is that their systems are less stringent. A bank loan is not available to everyone or every business.
Microfinance banks, on the other hand, lend money to individuals and small business owners without requiring collateral (in most cases).
However, you should be aware that a microfinance bank cannot perform certain functions that conventional banks can. In addition, the latter can make larger loans than the former.
1. Fina Trust Microfinance Bank
Fina Trust Bank was one of the country’s first microfinance institutions. In September 2009, it received its final banking license from the Central Bank of Nigeria.
Fina Trust Microfinance Bank began operations in October 2009. It is now one of Nigeria’s top ten microfinance institutions.
Customers of this bank can get quick loans, salary advances, SME loans, education loans, and financial asset financing.
It also provides a variety of account services. These include savings, current and fixed deposit accounts. Fina Trust MFB is located at 46 Toyin Street, Ikeja, Lagos, Nigeria.
2. LAPO Microfinance Bank
LAPO microfinance bank was established in the 1980s. Initially, it existed solely to assist less fortunate Nigerians in surviving the country’s difficult economic situation.
LAPO grew into a fully developed microfinance bank over time, and it is now ranked among Nigeria’s top ten. If you ask around, almost every adult is familiar with LAPO. Although you’ll probably hear some amusing stories about their payment structure, the majority of them are true.
LAPO microfinance bank is well-known for its stringent repayment policies, which may be difficult for some users to follow.
Its headquarters are at LAPO Place, 18, Dawson Road, P.M.B. 1729, Benin City, Edo State, Nigeria.
3. Mutual Trust Microfinance Bank
This microfinance bank, formerly known as Mark de Rock Microfinance Ltd, adopted its current name in 2016, following a change in management.
This microfinance bank’s loan services are extremely flexible. Customers can fill out and submit a loan application in minutes. Loan applications can be reviewed and approved in less than 12 hours.
4. KUDA Microfinance Bank
Almost everyone with a smartphone has heard of Kuda Bank in some form or another. Kuda Bank bills itself as the “Bank of the Free,” and it truly is.
Kudi Money was Nigeria’s first online lending and savings service. It was rebranded as Kuda Bank in 2019.
Kuda Bank charges no fees for app transactions, and it is easily accessible to anyone with a smartphone.
5. Rehoboth Microfinance Bank
This microfinance bank primarily provides loans and other financial services to small-scale traders who do not see the need for a bank account.
Because of its diligence over the years, Rehoboth is one of Nigeria’s top ten microfinance banks. Its headquarters are located at Adebowale House, Block B 150 Ikorodu Road, Onipanu Bus Stop, Lagos State.
6. ACCION Microfinance Bank
ACCION Microfinance Bank was established in 2006 and provides nearly identical financial services to LAPO. It assists micro-entrepreneurs and low-income earners by providing financial services that enable them to go about their daily lives.
ACCION Microfinance Bank also offers a wide range of loan options. Small business loans, home-ownership loans, education loans, and many others are examples.
Customers can also apply for and obtain quick loans of up to N150,000.
7. AB Microfinance Bank
AB In 2008, Microfinance Bank was established. It is one of the best options for micro and small businesses in Nigeria. Customers can always apply for personal, business, and housing loans.
Aside from loan services, AB Microfinance Bank allows customers to open savings, current, and fixed deposit accounts.
8. Altitude Microfinance Bank
Altitude Microfinance Bank Limited is also among the top ten microfinance banks in Nigeria. It is duly licensed by the Central Bank of Nigeria (CBN) and aims to assist small business owners and low-income earners.
This is accomplished through the provision of low-interest loans and other financial services. Altitude Microfinance Bank is located at 1, Thanni Olodo Street, Jibowu-Yaba, Lagos State, Nigeria.
9. VFD Microfinance Bank
VFD is similar to KUDA Bank in that both support digital banking. VBank is a subsidiary of the VFD Group, which was founded in 2009 and began financial operations in 2011.
VBank, one of Nigeria’s top ten microfinance banks, cannot be overlooked when discussing the pioneer digital banks in Nigeria. The mobile app also has a fast and smooth interface.
10. BOI Microfinance Bank Nigeria
BOI MFB is a subsidiary of the Bank of Industry Nigeria.
The Bank of Industry Limited (BOI) is the country’s first, largest, and most successful development financing institution.
This microfinance bank offers a variety of financial services to individuals as well as small and medium-sized businesses.