• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Financial Literacy

How to apply for a micro-finance loan in Nigeria

Op-Ed Contributor by Op-Ed Contributor
July 17, 2019
in Financial Literacy
How to apply for a micro-finance loan in Nigeria
Share on FacebookShare on TwitterShare on Linkedin
  • This articles explains common steps to follow when applying for a micro-finance loan in Nigeria
  • It explains factors you should consider before applying, documentation required, interest rates to expect etc.
  • It also highlights the type of collateral and guarantors that may be required before applying for a Micro-finance loan.

Microfinance bank

Microfinance Banks are established to assist individuals and Small & Medium Scale
Enterprises in obtaining mini credit facilities.

Due to the rigorous process and high interest rates demanded by commercial banks, Microfinance banks were established to assist individuals (salary earners), petty traders and small businesses in securing loans.

RelatedStories

Annual results, Delist a company,annual results, annual, results, nse

How to invest in the Nigerian Stock Exchange

October 21, 2019
Banks' stakeholders express 4 main concerns bothering the sector right now, CBN, MARKET UPDATE: CBN’s historic agriculture lending; Is it yielding the desired results? 

MFBs, DMBs, others get new lending limit directive from CBN

August 24, 2019

Microfinance credit facilities in Nigeria are given for the following reasons: Business, assets procurement, Agriculture, Educational purposes e.t.c. Therefore, individuals and businesses are eligible for Microfinance loans as long as they meet the requirements stipulated by the bank.

AGRIC, BUSINESS, EDUCATION AND ASSETS

[Find Out: Why A Drop In Inflation Does Not Necessarily Mean A Drop In Prices Of Commodities]

The interest rate on Microfinance loans ranges from 5%-6% depending on the loan
size.The tenure of the loan depends on the loan type and they could range from:

• 1-3 months
• 4-6 months
• 4-12 months

The maximum maturity date is 18 months however this only applies to businesses whom are granted up to 5 million naira credit facilities.

The following factors should be considered before applying for a business loan:

  • In order to prove credit-worthiness, most banks require prospective customers to have an account in the bank which has been active and serviced for at least 6 months.
  • It is advisable to distinguish one’s personal account from business account to ensure
    accountability.
  • For Small and Medium Scale Enterprises, thorough research must have been carried out about the business before applying for a loan. The business must also be active for at least one year and operating from the same location for at least six months.

Documents required when applying for a Micro Finance Loan

The documents required for a Microfinance loan include:

  1. Loan application form
  2. Excellent Business Proposal (for SMEs)
  3. Letter of Application (for individuals)
  4. Valid means of identification (National I.D card, International Passport, Driver’s License)
  5. Copy of recent utility bill
  6. 4 recent passport photographs
  7. Evidence of business location

Collateral

This is optional when applying for a Micro-finance loan. However, large business loans,
agriculture loans and asset procurement loans require a collateral whose value must be equal to or greater than the loan amount.

Collateral loans

Guarantors

Petty traders and individuals require guarantors instead of collateral. The minimum
number of Guarantors required by Microfinance Banks is two.

Guarantors must be financially stable and at least 25 years old. It is the duty of the Guarantors to ensure that the loan is paid back when due.

Where there’s a default in repayment by the customer, the Guarantor will be required to repay the loan amount. On the day the loan agreement is signed, the prospective customer and the guarantors are required to sign the agreement.

[Don’t Miss: Why A Drop In Inflation Does Not Necessarily Mean A Drop In Prices Of Commodities]

Documents required for the Guarantor

  1. 2 recent passport Photographs
  2. Copy of recent utility bill
  3. Valid means of identification (National I.D card, International Passport, Driver’s License)
    Finally, it is pertinent to note that a Microfinance loan can be repaid before it’s due date.

Ijeoma Uhuegbulem is a Business Analyst and writes from Lagos, Nigeria.


Follow us for Breaking News and Market Intelligence.
Tags: ExplainersMicro finance loans
Op-Ed Contributor

Op-Ed Contributor

Nairametrics frequently publishes articles from experts such as financial analysts, economists, researchers and investors. We also feature articles from guest writers and bloggers who wish to push their views and opinions through our platform. To get your articles on Nairametrics, kindly send an email to info@nairametrics.com and we will publish it within 24 hours of approval by our editorial team.

Related Posts

Annual results, Delist a company,annual results, annual, results, nse
Financial Literacy

How to invest in the Nigerian Stock Exchange

October 21, 2019
Banks' stakeholders express 4 main concerns bothering the sector right now, CBN, MARKET UPDATE: CBN’s historic agriculture lending; Is it yielding the desired results? 
Business News

MFBs, DMBs, others get new lending limit directive from CBN

August 24, 2019
Why FSDH is forecasting a slight increase in Nigeria's inflation rate
Financial Literacy

Inflation rate, rise and fall explained

August 16, 2019
Nigerian fixed deposits, mark to market
Financial Literacy

Guide to making money by investing in Nigerian Fixed Deposits

July 24, 2019
Bond, Clean Prices and Dirty Prices | Bond market
Financial Literacy

Difference between Clean and Dirty Price of a Bond

July 10, 2019
Emerging Market and a Frontier Market
Financial Literacy

Difference between an Emerging Market and a Frontier Market

July 3, 2019
Next Post
Access Bank Plc

Access Bank wins Karlsruhe Sustainable Finance Award

Comments 29

  1. Mr Roland m umahi says:
    September 30, 2019 at 12:34 pm

    Comment: Thanks for ur contribution to d society i will try to keep entouch as i’ve got some question to ask later to see d posibility of geting loan for my production company

    Reply
  2. Chinedu g Emmanuel says:
    April 24, 2020 at 10:54 pm

    How do I apply am in Lagos am interested on the lon I have land here which I intend to use for agriculture products but I need money to start

    Reply
  3. Kolawole Kemisola says:
    June 19, 2020 at 11:09 pm

    Please i need loan am a business woman

    Reply
  4. CHRISTIANA says:
    April 23, 2021 at 10:24 am

    HOW LONG WILL TAKE TO GET THE LON

    Reply
  5. Obasi Charles says:
    May 13, 2021 at 1:31 pm

    Please i need loan to uplift my business

    Reply
  6. Christy says:
    May 27, 2021 at 10:24 pm

    How do i apply loan on line

    Reply
  7. Christy says:
    May 27, 2021 at 10:28 pm

    How do I apply loan on line in micro bank

    Reply
  8. Yusuf says:
    June 10, 2021 at 3:00 pm

    Sorry

    Reply
  9. Nnamdi says:
    July 13, 2021 at 1:46 pm

    How do i apply and can i get upto 500,000?

    Reply
  10. Olabanjo funmilola susan says:
    July 17, 2021 at 4:38 pm

    How do get a loan of 100k plssss

    Reply
    • Stanley chukwuemeka says:
      March 10, 2022 at 9:48 pm

      How can i get a loan

      Reply
  11. Chidimma, E. Ashimole says:
    July 26, 2021 at 12:02 pm

    Good day pls, I need loan of #500,000 to upgrade my business and finish my shop expansion I’ve started to enable my business get larger

    Reply
  12. Zainab Garba Rufai says:
    September 4, 2021 at 9:00 pm

    I need corrona virus loan to finish my study

    Reply
  13. Mustapha bello ibrahim says:
    September 9, 2021 at 5:59 am

    I am a furniture I will like to get a lone at least five hundred thausand in order to improve my business will you rent the amaunt withing 5 to 6 month the money will return to the bank.

    Reply
  14. Umar husseini Ardo says:
    October 11, 2021 at 11:05 pm

    I am a cattle trader I wish to apply for loan of 500000 to bust the business the money will return to the bank in 4years.

    Reply
  15. Ayodele Ifeoluwa says:
    October 14, 2021 at 3:50 pm

    How can I get a loan to get an apartment
    Please. I and my husband are working we will be paying back monthly..
    Kindly assist us

    Reply
  16. Ekpong confidence etem says:
    November 25, 2021 at 1:24 pm

    Please I need a loan to pay my house rent

    Reply
  17. Ekpong confidence etem says:
    November 25, 2021 at 1:25 pm

    I need a loan to pay my house rent

    Reply
  18. usoh david says:
    December 7, 2021 at 5:09 pm

    please i need a loan of 1 million naira

    Reply
  19. Stanley chukwuemeka says:
    March 10, 2022 at 9:44 pm

    Be

    Reply
  20. Stanley chukwuemeka says:
    March 10, 2022 at 9:45 pm

    Ur the best like it

    Reply
  21. Olagoke Daniel says:
    March 19, 2022 at 7:37 am

    Thanks all information well understood… I just wanted to start up a business can I get loan too?

    Reply
  22. Adamu Abdullahi musa says:
    June 14, 2022 at 11:25 pm

    My name is adamu Abdullahi musa was born in potiskum yobe state I want to get my loan because my business is mini thank you

    Reply
  23. Adamu Abdullahi musa says:
    June 15, 2022 at 6:45 am

    Yes

    Reply
  24. Monday husseini Amos says:
    June 16, 2022 at 7:49 pm

    I need 500,000 to upgrade my business.

    Reply
  25. Sodiq Soetan says:
    June 29, 2022 at 12:19 am

    I need someone that can get me a car for taxi and I will be paying back as instalment, am from ogun state you can call on my number 08169028579

    Reply
  26. Anifat says:
    August 29, 2022 at 3:40 pm

    Why do u people require 2% of desired loan amount for Assurance fee before granting a loan, after i av paid 1,000 for card purchase

    Reply
  27. Martins says:
    August 31, 2022 at 9:00 am

    I need a loan of 4 hundred thousand to expand my business am into car accessories such as paint & refinishing

    Reply
  28. Nwankwo Angela ukamaka says:
    September 9, 2022 at 2:01 pm

    How do I get the loan

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank
Zenth Bank








DUNS

Recent News

  • Tinubu seeks swift action on ECOWAS Standby Force as insecurity escalates in West Africa 
  • Global oil price may surge past $150 per barrel as Iran’s parliament approves closure of Strait of Hormuz 
  • President Trump’s visa restrictions threaten 16 U.S. colleges depedent on international students 

Follow us on social media:

Recent News

Tinubu seeks swift action on ECOWAS Standby Force as insecurity escalates in West Africa 

Tinubu seeks swift action on ECOWAS Standby Force as insecurity escalates in West Africa 

June 22, 2025
Latest crude oil price drop threatens Nigeria’s revenue and naira stability 

Global oil price may surge past $150 per barrel as Iran’s parliament approves closure of Strait of Hormuz 

June 22, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics