We cannot disregard the contribution of microfinance banks in the expansion of a country as they play a crucial role in alleviating poverty in our society. This article is about Grooming Microfinance Institution, one of the biggest microfinance banks in Nigeria today.
Grooming center is a registered company licensed by the central bank of Nigeria to operate as a microfinance bank. It began operation in 2018 and has since then touched many lives. Grooming center is not just a bank but a microfinance institution that trains other microfinance banks in Nigeria and is rated among the top best microfinance institutions in Nigeria.
This institution is aimed at helping the moderately poor by bringing different microfinance services to their doorstep. Such services include:
- providing financial services like lending money to clients
- contributing to rural reconstruction
- educating clients on the purpose of loan
- helping clients to achieve financial stability
- eradicating poverty
Grooming Microfinance Product
This is the starting point of products in grooming center and it brings the opportunity to clients to finance their business. it ranges from #140,000 to 300,000. It has a service charge of 15%and is paid back in equal weekly installments for 23 weeks which is the same as six months.
This is given as a complimentary loan to help clients increase the stock during periods of high demand. it is paid back in 6 installments every month and has a service charge of 15%. this loan can be assessed at the second cycle of the small loan. it ranges from 40,000 to 100,000
The grooming asset loan is given to customers from the second cycle of the small loan just like the festival loan. it ranges from 100,000 and above with an interest rate of 15%. it is repaid in 10 installments over a period of ten months.
if you want to assess a larger amount than that of the asset loan, then this type of loan is for you.it ranges from 500,000 to 3,000,000 with a service charge of 2.5% per month. The repayment schedule is for 12 months. For example, say you assess 2,400,000 under this product, your repayment amount will be #260,000. every month.
Grooming centre has other products like the solar loan, spring loan, IFDC loans, and SME loans. They also give scholarships to their client’s children.
Grooming Centre Loan Requirements
In order to access any loan of grooming centre, client provides the following:
- the client must have a business that generates revenue
- a bank verification number (BVN)
- a valid means of identification
- a guarantor
- a recommendation from a credit officer of grooming
Charges and Interest for Grooming Loans
- a loan form of 200 which is duly filled and signed
- a service charge of 2% of the requested loan amount at the point of disbursement .
- an interest rate of 15% on the requested loan or 1.5% per month.
- one week grace period for a small loan and one month grace period for an asset loan. This means that after disbursement, for small loan, client’s are given one week grace to utilize the money before they start paying back and one month for asset loan.