Here are top 10 microfinance banks in Nigeria on which you can rely for the credibility of their reputation through the dependable delivery of their loan products, the integrity of their services, and certainly, the responsibility of their staffs. But before you are brought face to face with the list of the top 10 microfinance banks in Nigeria, this article will first let you know what microfinance banks are, what difference they make when compared to standard banks, and what functions or roles they play in the economic development of any nation.
What are Microfinance Banks?
Microfinance banks are small financial institutions which are easily reachable to people or organizations or schools or enterprise that need the products of their financial services such as loans and other financial aids like it without having to drop any collateral or any serious interests. They are DFIs that concentrate on saving individuals and businesses that seem drowning in a harsh economic conditions. Although they tread the path of ethical lending practices, microfinance banks do not operate in the same way as other standard banks.
What Makes Microfinance Banks Different from any other Banks?
Other standard banks are different from microfinance banks in that they are smaller when compared to many of these banks in terms of structure and their structural tentacles across all states. The lending conventions of microfinance banks are somewhat never similar to those of the standard banks. This is because microfinance banks do not need to ask for collateral before they release loans to the borrowers. Its criteria for opening accounts is also different too.
Functions of Microfinance Banks in Nigeria
Microfinance banks in their various models have a lot of functions which they play in the business of nation-building in economic terms. Some of these functions are:
- Assisting to reduce and alleviate poverty and enhance economic development, particularly in developing economies. In Nigeria, they have accelerated the operation of poverty alleviation programmes of the Government and supported promising entrepreneurs while aiding new ones to emerge. The role of microfinance banks in the promotion of national economic development is entrenched in the objectives of the microfinance banking scheme in Nigeria that was formulated in line with the objectives of the Millennium Development Goals (MDGs), the National Economic Empowerment and Development Strategy (NEEDS) and the Vision 2020.
- Promoting rural development through financial intermediation, stimulation of productive activities in the rural sector, development of banking habits among rural dwellers, ensuring the development of an integrated national financial system and improving the economic status of small scale producers in the rural and urban areas.
- Strategically positioned to expand the financial frontier and stimulate the exploitation and development of economic opportunities in the informal sector through the provision of traditional and even non-traditional banking services such as technical and managerial assistance, sale of output and input purchase financing, machinery and equipment leasing and community development financing.
Top 10 Microfinance Banks in Nigeria.
Below are the top 10 microfinance banks in Nigeria:
1. Fina Trust Microfinance Bank
This bank is one of the top 10 microfinance banks in Nigeria. Fina Trust Microfinance Bank is one of Nigeria’s foremost Microfinance Bank. Its final license was secured from the Central Bank of Nigeria in September 2009 as Microfinance Bank and commenced operations in October 2009. It is located in 46, Toyin Street, Ikeja, Nigeria.
2. LAPO Microfinance Bank
This bank is a development financial institution whose aim is set on completely reducing poverty in the land by lending out funds to SMEs and people who will need it to start up businesses or trade. It has its headquarters in Benin city, Edo state and a branch in Lagos state. To contact LAPO, you can visit the official website.
3. Mutual Trust Microfinance Bank
This bank too is one of the top 10 microfinance banks in Nigeria which allows its customers to enjoy easy access to fast and flexible loans of up to N3 million Naira in 10 hours or less. You can reach them through https://www.mutualtrustmfb.com. They have an excellent prompt loan service delivery. They are located in Plot 797 Adetokunbo Ademola Cresent, Abuja.
4. KUDA Microfinance Bank
The KUDA microfinance bank is also one very reliable bank which operates efficient banking services online. It is Nigeria’s first mobile-only bank licensed by the Central Bank. Zero card maintenance fees, free transfers, automatic savings. Hundreds of youths in Nigeria make good use of its App which easily downloadable on Google Playstore.
5. Rehoboth Microfinance Bank
Rehoboth Microfinance Bank is the foremost microfinance with emphasis on grassroot banking. Reaching to the unbanked and empowering the small scale traders. It is located around Adebowale House, Block B 150 Ikorodu road, Onipanu Bus Stop, Lagos State. Their official website is https://rehobothmfb.com. It is one of the top 10 microfinance banks in Nigeria.
6. Accion Microfinance Bank Limited
This microfinance bank economically empowers micro-entrepreneurs and low income earners by providing financial services in a sustainable, ethical and profitable manner. It was established in 2006. Taiwo Adesina Joda is the Managing Director/CEO of Accion MfB.
7. AB Microfinance Bank
AB Microfinance Bank Nigeria offers its clients a fast, low cost, and secure way of transferring their funds to any commercial bank in Nigeria. It is located in No.9 Oba Akran Avenue. Ikeja Lagos state. It offers a broad range of financial services to micro, small and medium-sized enterprises (MSMEs) in Nigeria. Its product offering includes saving & current accounts, term deposits and business loans for MSMEs. Dr. Zattler is the Chief Executive Officer of AccessHolding AG, the majority owner of AB Microfinance, as well as a member and chairman of other banks in the AccessHolding Group.
8. Altitude Microfinance Bank
Altitude Microfinance Bank Limited is a CBN Approved company that economically empower micro- entrepreneurs and low income earners by providing financial aids in form of low-interest loans. It is located in zone B, Block 14 Extension, ASPAMDA, Lagos State. Their phone contacts are +234 80378865706, 08181436006. You can also reach Altitude bank via altitudemfb@yahoo.com.
9. BoI Microfinance Bank
BOI Microfinance Bank Nigeria is a subsidiary of Bank of Industry Nigeria. It offers a broad range of financial services to micro, small and medium-sized enterprises and various low income earners both as individuals and as groups. It is a limited liability company duly incorporated in Nigeria under the 2002 Companies and Allied Matters Act, and is regulated by the Central Bank of Nigeria. Its head quarters: is located in No 23, Marina-Lagos Lagos Island, Lagos.
10. Fortis Microfinance Bank Plc
The bank is situated in Medife House, Plot 2135 Herbert Macaulay Way Zone 5 Abuja Nigeria. Its goal is to offer a wide range of products, including loan/credit products which include Inventory Finance, Overdraft, Shop rent loan, Sharp Sharp loan, Salary advance etc. across Nigeria and to every Nigerian with an idea to rise in business.
Others are:
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Assets Microfinance Bank
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FBN Microfinance Bank
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Addosser Microfinance Bank
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VFD Microfinance Bank
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Sparkle Microfinance Bank
