Accion MFB has branches mostly in Lagos, with a few in Port Harcourt, Ogun State and Onitsha. Relying on support from Accion international they provide loans ranging from business loans and overdraft facilities, to school fees and impaired disability loans. There are no account opening charges, however they charge a 3.5% fee for admin and insurances purposes. Loans range from 1-12 months depending on the loan type, and interest rates range from 4-6%.
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.
· 6 recent passport photographs
· Recent utility bill from residence
· Identification: National ID Card / Valid Driver’s License / Valid International passport
· Shop receipt (evidence of business location)
· Guarantor aged 28-59
· All loans require a 20% compulsory deposit of the approved loan amount to be paid after signing the offer letter.
· Ability to repay loan in case of default
· 1 recent passport photograph
· Recent utility bill from his residence
· Identification: National ID Card or Valid Driver’s License or Valid International passport