10 Best Online Microfinance Loan in Nigeria

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The principal of an online microfinance loan in Nigeria is repaid either on a regular installment basis or in whole on the set redemption date.

You can apply for an online microfinance loan in Nigeria. Due to Nigeria’s capital markets being still underdeveloped, online microfinance loans play a vital role in encouraging the economy.

It is because of high-interest rates, short loan maturities, tight paperwork requirements, and the inability to offer collateral, that traditional lenders’ loans are limited for low-income and self-employed users.

This article teaches online microfinance loan in Nigeria and the procedures to take.

It covers what to think about before applying, what documentation is required, and what interest rates to expect, among other things.

Microfinance banks were founded to help people and small and medium-sized businesses receive microcredit.

Online Microfinance Loan in Nigeria
Photo credit: Invoice NG

Microfinance Loan Requirements in Nigeria

  • Application for a loan
  • Outstanding Business Proposal (for SMEs)
  • Application Letter (for individuals)
  • Valid photo identification (national identification card, passport, or driver’s license)
  • a recent utility bill copy
  • Four recent passport photos
  • Evidence of the company’s location

How to Apply for Microfinance Loan

  • Have a genuine loan plan or project in place.
  • Proof of Your Company’s Existence
  • Having a Bank Account
  • The bank account had to have been kept for a long time.
  • Present a Contingent

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10 Best Online Microfinance Loan in Nigeria

  • Microcred Microfinance Bank

Micro loans – Entrepreneurs, dealers, and students can get up to N1 million for their existing enterprises. Microcred charges a minimum of 7% interest on loans, with the total amount depending on the length of the loan.

SME loans – They offer a loan of up to $20 million to help you consolidate or invest in your firm, repayable over the course of 24 months.

  • Pennylender

Pennylender is an online moneylender that offers borrowers through their employers single-payment loans, installment loans, and payroll loans. Your monthly salary is taken from the amount borrowed.

  • C24

C24 is a moneylender that offers retail loans to customers in need of immediate cash.

  • Hasal Microfinance Bank

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

Micro loans – This is for entrepreneurs, traders, and students to access up to N1m for existing businesses. The interest rate charged by Hasal is a minimum of 7% with the total dependent on the tenor of the loan. The loan tenor is up to 12 months.

Group Loan – The group loan is a form of rotating credit (Esusu/Ajo). 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.

SME loan – Hasal provides loan options that are specifically designed to satisfy the demands of small and medium businesses (SME). SME finance is a type of funding available for certain medium-term company projects.

  • Kia Kia

Kia Kia is a moneylender that offers flexible personal loans and connects borrowers with individual or corporate lenders at mutually agreed-upon rates. They offer loans ranging from N10,000 to N200,000 with terms ranging from 7 to 30 days.

  • Ibile Microfinance Bank

Ibile Microfinance Bank is a CBN-licensed institution in Nigeria that provides loans for a variety of purposes.

Micro loans – Entrepreneurs, dealers, and students can get up to N1 million for their existing enterprises. Ibile charges a minimum of 5% interest on loans, with the total amount depending on the length of the loan.

SME loans – They offer a loan of over N500k that may be repaid in as little as 24 months to help you consolidate or invest in your business. The money will be used as working capital or to buy fixed assets.

Salary Advance – Civil and public servants, as well as employees of private organizations with a minimum of ten employees. A bank account must be used to deposit the salary.

Agriculture – Farmers of arable/field crops, fish farmers, animal growers, agricultural produce traders, and tree crop farmers can apply for this loan. Ibile Microfinance is dedicated to assisting the rural sector in expanding small and medium-sized agricultural businesses.

Asset Financing – IBILE Asset Finance gives you the chance to acquire the asset you’ve always wanted. It doesn’t matter if it’s a generator, a cellphone, a laptop, a washing machine, or household furniture.

  • Chase Microfinance Bank

Chase Microfinance Bank is a CBN-licensed institution in Nigeria that provides loans for a variety of purposes.

Micro loans – This is for existing enterprises by entrepreneurs, traders, and students. Micro lending is the provision of financial services to persons who do not have access to standard banking services.

Group Loan – Group based loans from Chase Microfinance Bank are meant for microbusiness owners who do not have traditional collateral.

Asset Financing – The loan is for traders, craftsmen, and low-wage workers to purchase assets such as generators, electronics, kitchen appliances, and other household items.

  • Cedar Microfinance Bank

Cedar Microfinance Bank is a CBN-licensed institution in Nigeria that provides loans for a variety of purposes.

Micro loans – This is for existing enterprises by entrepreneurs, traders, and students. Micro lending is the provision of financial services to persons who do not have access to standard banking services.

Asset Financing – This is a short to a medium-term loan given to consumers for the acquisition of mobile capital assets, such as automobiles, construction equipment, industrial plant and machinery, agricultural equipment, and office and information technology equipment.

Group Loan – Group based loans from Cedar Microfinance Bank are meant for microbusiness owners who do not have traditional collateral. These are short-term loans of up to 200,000 dollars.

When choosing a microfinance bank, use caution. Some of these banks are unqualified financial service providers who frequently mistreat customers. This makes one ask if microfinance banks are indeed necessary for SMEs.

To receive the best deal, make sure you understand the terms and conditions and compare interest rates from different microfinance institutions.

We are waiting for your contribution or suggestion about online microfinance loans in Nigeria, if you have any kindle use the comment box.

Watch the video below to know the best online microfinance loan in Nigeria:

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