Description
Mayfair Microfinance Bank Limited
Mayfair Microfinance Bank Limited was licensed in 2009 by the Central Bank of Nigeria to operate as a microfinance bank.
Products
- Micro loans – This is for entrepreneurs, traders and students to access up to N1m for existing businesses. The interest rate charged by Mayfair is a minimum of 5% with the total dependent on the tenor of the loan.
- Salary Advance – This product is targeted at salary earners at large blue chip companies and enables them to access up to 75% of their monthly salary in advance.
- Group Loan – Their Group loan is available at 3.5%. The group loan is a form of rotating credit (Esusu/Ajo). It is for a group of individual who agree to meet for a defined period in order to save and borrow together. 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 N10 to a fund every month for six months. Each month, a different member of the group collects the N50 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.
Pros
- No collateral needed
- Fast loan processing period
Cons
- Extensive paperwork
- Guarantor required
Requirements
- A guarantor
- One recent passport photograph
- Salary bank statement for the last 6 months
- NUBAN Cheque leaves for the duration of Loan
- Staff Identification card
- Pension OR Tax Identification number
- Letter of Employment, Confirmation, Promotion, Redeployment, Salary Increase OR Introduction Letter from Employer’s HR
- Utility Bill (PHCN, Water bill, LAWMA bill OR Rent Agreement)
- Valid Proof of Identification (current ECOWAS Passport, National Identification, Driver’s License or Voters ID).
