Description
AB Microfinance
AB Microfinance Bank Nigeria is a foreign-owned financial institution, based in Lagos state, which offers a broad range of financial services to micro, small and medium-sized enterprises (MSMEs) and other clients in the lower income strata. The interest rate charged depends on the loan amount.
Microfinance lending is the provision of financial services for people who don’t have access to traditional financial services such as banks. The loans are aimed at individuals who were previously considered “unbankable” by larger banking institutions. These are borrowers who are possibly dealing in small amounts of money each day, living in hard-to-access areas, without credit histories or who don’t meet “traditional requirements” within the banking sector.
Microfinance loans specifically are not appropriate in situations where they propagate a cycle of debt or dependence. If you are taking out the loan to pay off another loan, this is considered very bad practice.
Pros
- High maximum loan
- Choice of repayment scheme
- No borrower groups
Cons
- On site assessment by lending staff
- Geographic restrictions to Lagos
- Collateral required
Requirements
• Applicant must be 21 or above
• Applicant must be a Nigerian Resident
• Applicant must be the owner of the business
• Business must be in operating area .
