StartCredits StartCredits StartCredits StartCredits
  • Loans
    • Credit Score
    • Guide
  • Investments
    • Bank
    • Crypto
  • Log In
StartCredits StartCredits
  • Loans
    • Credit Score
    • Guide
  • Investments
    • Bank
    • Crypto
  • Log In
Jun 29

How to get Group Loans in Nigeria

  • June 29, 2018
  • StartCredits
  • Loans

Micro-businesses in Nigeria need funds to grow their operations. Although they find it difficult to access to loans from banks. Group loans in Nigeria are usually provided by microfinance banks to traders.

What is a group loan

The group loan is a form of rotating credit (Esusu/Ajo). A rotating credit scheme is where a group of individuals fill the role of an informal financial institution through repeated contributions and withdrawals to and from a common fund.

It is formed because accessing formal institutions is difficult due to their unavailability or because these institutions are unable to provide the appropriate service. The group loan reduces the risk to the lender which allows them to charge a lower interest rate than on a normal individual loan.

The transactions can vary in occurrences as often as daily to every six months, and recipients of funds are commonly chosen based on financial need or lottery. For example, six people may agree to give ₦10,000 to a fund every month for six months. Each month, a different member of the group collects the ₦50,000 contributed by the other five members and uses it for their business expenses or personal consumption. This arrangement allows people who can’t normally raise substantial capital to have periodic access to such funds.

Group Loan Features

  • The group ranges from 3 – 10
  • You won’t need collateral as long as you are in an existing group
  • Loan repayment is flexible between 3 to 12 months
  • The group members will act as guarantor to each other

Providers of group loans in Nigeria

  • Mkobo
  • Susu
  • Hasal
  • Ipodo Ikeja
  • Facebook
  • Twitter
  • Tumblr
  • Pinterest
  • Google+
  • LinkedIn
  • E-Mail

Related Posts

    Comments are closed.

    Search for your Loan

    Latest Loans

    • C24 loans C24
    • FCMB loans FCMB
    • snow microfinance Snow
    • MoneyWise microfinance bank MoneyWise
    • fidelity loans Fidelity
      Rated 4.00 out of 5
    • alat loans Alat
      Rated 1.00 out of 5
    • UBA loan UBA
      Rated 3.67 out of 5
    • Finca Microfinance Finca
    • mkobo loan Mkobo
    • ipodo-ikeja Ipodo Ikeja

    Loan Advice

    • Funding options to Emigrate from Nigeria
    • How to access bank loans for your business in Nigeria
    • How to improve your credit score in Nigeria
    • Non-performing loans of Nigerian banks
    • Securing a federal government housing loan in Nigeria
    • How to check your NIN for a loan application
    • Types of loans offered in Nigeria
    • Home loans in Nigeria

    Loan Type

    • Bank
    • Government
    • Grants
    • Lease
    • Microfinance
    • Moneylender
    • Mortgage
    • Peer-to-peer

    Company

    • About
    • Contact
    • Careers
    • Credit Score

    Loans

    • Moneylenders
    • Peer to Peer
    • Mortgage
    • Microfinance

    Investments

    • Crypto
    • Bonds
    • Deposits
    • Shares

    Follow Us!

    Follow Us on FacebookFollow Us on TwitterFollow Us on Google+
    • Loans
      ▼
      • Credit Score
      • Guide
    • Investments
      ▼
      • Bank
      • Crypto
    • Log In
    Return To Top
    • Moneylenders
    • Peer to Peer
    • Mortgage
    • Microfinance
    2023