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Check Out The Microfinance Banks That Offer Loan Without Collateral

You might need to borrow a relatively small amount of money “say N50,000” and it might be sheer wickedness to ask you to open a corporate bank account and manage the account for 3 months before you apply for a N50,000 loan. In addition, you might need to access the cash urgently and the bank’s typical processing time might just be too long for you.

Hence, this post is written for you, if you need access to business (and occasionally personal) non-collateral loans, without having to go through the typical bank hassle. I hope you find it informative as you raise funding to build a successful SME in Nigeria.

1.  LAPO Microfinance Bank Limited

LAPO (Lift Above Poverty Organization) runs a microfinance bank that is aimed at assisting the Nigerian micro-entrepreneur obtain access to credit, savings instruments and other financial services. The major advantage of obtaining loans from LAPO is that the repayment plan is in small installments. In addition, transaction costs are minimal, collateral is not required and you don’t need to fill up a mountain of paperwork.

To obtain credit from LAPO, you’ll be required to fill a registration form, open an account with 10% of the amount you intend to borrow, get two guarantors who will be visited by a LAPO liaison officer. The repayment plan for the typical LAPO loan is up to tenure of 8 months, an interest rate of 2.2% and a 1% monthly contribution of the loan that will be available to you for withdrawal when you repay the loan.

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2. AB Microfinance Bank Nigeria

AB Microfinance Bank Nigeria makes it easy for Nigerian entrepreneurs to obtain loans in a quick, transparent and efficient environment. The major benefit of obtaining loans from AB Microfinance is that you can obtain up to N1.5 million in loans from its Maxiplus loan plans.

To obtain loans from AB Microfinance, you don’t need to provide a mandatory deposit/savings account; in fact, you need not provide audited financial statements. Depending on the size of the loan, the repayment plan can run from 5 to 18 months, but you should be prepared to pay interests of up to 6% on declining balance.

3. Mainstreet Bank Microfinance Bank Ltd

Mainstreet Bank Micro Finance Bank (MFB) is child-company of Mainstreet Bank and it is licensed by the Central Bank of Nigeria to provide Nigerians with micro-financial services. Since starting operations in 2009, Mainstreet MFB has given out more than N1.3 billion in loans and the average loan per customer stands at about N257,000.

To obtain loans from Mainstreet MFB, you’ll need to visit the bank’s office at 94, Broad Street, Lagos or make inquiries at the closest Mainstreet Bank. Alternatively, you can call: 234–01-2137072, 234–01-2137079 or email info@mainstreetbanklimited.com for more information.

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Written by nigeriahow

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