Description

Echo Microfinance Bank

Echo Microfinance Bank is a CBN licensed institution offering loans for multiple purposes in Lagos, Nigeria.

Products

• Group Loan – Echo Microfinance Bank group based loans are loan facilities designed for micro-enterprise operators, who do not have conventional collateral. These loans are up to ₦500,000 and have a short tenor. To supplement collateral requirements, the loans are secured partly by cash and partly by group guarantees. To access these types of loans one has be a member of registered and unregistered groups of 4-20 members. Group lending is where individuals borrow in the group by use of co-guarantee mechanism and any other appropriate securities accepted by the bank.
• Asset Financing – The loan is targeted at staff and organizations. The Bank purchases assets on behalf of the customer. The asset to be purchased could be generating set, refrigerator, laptop, television set, personal computer, etc. The repayment is over 3 to 6 months from the regular inflows over the tenor of the facility
• Salary Advance – Advance against expected salaries is available for salary earners of acceptable organizations. The maximum amount of loan is 50% of expected month end salary for a maximum tenor of 30 days. The loan is repayable from the next available salary. Customers are expected to domicile their salaries to the Bank, or the domiciliation of cheques of other banks drawn on their salary accounts, or as otherwise agreed
• Education – School fees finance is available to parents of wards in an acceptable school. The Bank pays the school fees, on behalf of the parent, direct to the school. Parent are expected to repay the loan within 3 months, by monthly equal repayments. School finance is directed at funding the cash flow shortfall or developmental activities of schools. School finance facility is available to acceptable schools on demand

Pros

• Flexible loan conditions
• Competitive rate

Cons

• Collateral required
• Geographic restrictions to Lagos
• Guarantor required

Requirements

• Letter of employment
• Staff identity card
• Pay slip
• 6 months statement of account
• Other forms of identification (National Identity card, international passport, etc)
• Utility bill
• Provide a guarantor