Top 10 Best Microfinance Banks in Nigeria (2021)

Do you own  or want to start up a small business and you are looking for trusted financial institutions to apply for a small business loan? then think of microfinance banks in Nigeria. Check out the best 10 microcredit banks in Nigeria.

What Is Microfinance?

Microfinance, also called microcredit​, is a type of banking service provided to unemployed or low-income individuals or groups who otherwise would have no other access to financial services. The goal of microfinance is to ultimately give impoverished people an opportunity to become self-sufficient.

It is believed that microfinance banks are not as complicated as the commercial banks, thereby an average citizen feels more comfortable borrowing from them than borrowing from commercial banks and since they are closer to the rural settlement of the country, small and medium scale entrepreneurs can obtain loan easily from these banks.

Features of Microfinance Banks

Basically, three features distinguish microfinance from other formal financial products which include:

  • The smallness of loans and savings
  • Absence of collateral
  • The simplicity of operation

Top 10 Best Microfinance Banks in Nigeria (2021)

Top 10 Microfinance Banks in Nigeria

There are some top microfinance banks in Nigeria that are diligent, dedicated to service, ranked to be among the best and have earned clients/customers trust over the years. They don’t delay or have tedious procedures to obtain loan, we shall be listing ten(10) of these banks.

Here are the 10 best microfinance banks in out of the 1015 in Nigeria.

ADDOSSER Microfinance Bank Limited

ADDOSSER was established and registered to the CBN in May 2008. Ever since then, it has played an important role in rendering microfinance assistance to individuals, entrepreneurs, small and medium-sized business owners. Also, research tells that the volume of financial assistance that ADDOSSER issued in recent years is estimated to be N13Billion with over 80,000 prospective customers. Website: www.addosser.com

LAPO Microfinance Bank

Another great and successful microfinance institution in Nigeria is LAPO Microfinance Bank. The bank has helped over 1 million entrepreneurs and individuals across Nigeria. LAPO main goal is to create and develop small businesses into a profitable one in the region. Hence, it provides entrepreneurs an amazing money lending and microfinance services as it listens to the pressing needs of its seasoned and potential clients.

For more info about LAPO, visit www.lapo-nigeria.org.

Mainstreet Microfinance Bank Nigeria

Mainstreet also render some banking services in the area of money lending and microfinance. This financial institution is known for giving out business loans to its potential clients to grow and expand their businesses.

Often, mainstreet microfinance bank operates in a low-income area that really need fund for business development. For further informatoin about this bank, visit www.mainstreetbankmfb.com.

Accion Microfinance Bank Limited

This microfinance bank was accredited as a recognised financial institution by the CBN in 2007 and it began its operation by providing microfinance and micro-credits services to individuals and small businesses that same year.

In case you’ll like to submit a business proposal to their table, you may find some other useful information at www.accionmfb.com.

AB Microfinance Bank Nigeria

This is one of the best microfinance bank in Nigeria that offer micro-credits to entrepreneurs and individuals. It’s a foreign microlender financial institution founded in 2012. AB offers its prospective and seasonal clients a wider scale of microfinancing services that are aimed at micro or small businesses plus new business owners that are just starting from the scratch. If you’ll like to partner with AB microfinance bank, do visit them on www.ab-mfbnigeria.com.

Fina Trust Microfinance Bank

Needless to say, Fina Trust is another top microfinance bank in Nigeria that is doing great in giving microfinance assistance to entrepreneurs and individuals. Fina Trust is so determined in assisting small businesses in developing the local SME’s. For further inquiries, visit www.finatrustmfbank.com.

Microfinance Mutual Trust

MMT was established and registered in 2012. It is a microfinance bank that pays special attention to small and medium-sized businesses, with the objective of growing them into a profitable venture as possible. Also, MMT also render microfinance services to businesswomen with small business enterprise and among others. Their official website is www.mutualtrustmfb.com.

FINCA Microfinance

This microfinance bank was founded in 2014 in Imo state. It main goals and objective is to develop all available microfinance businesses in the Southeastern and Southwestern part of the country.

Other than microfinance services for small and medium-scaled businesses, FINCA also offer it customers loans deposits, insurance payments among other things. You can reach them on www.fincanigeria.com.

Fortis Microfinance Bank Plc

One of the most successful microlender institutions in Nigeria is Fortis. The microfinance bank was registered with the CBN in 2007 and it full operation same year.

In 2011, Fortis microfinance bank was certified by the relevant authority into the Public limited company. Ever since then, it had been rendering an elaborate financial services to its clients.

Rehoboth Microfinance Bank

Rehoboth is another microlender financial institution that assist small business and entrepreneurs in funding and developing their business.

Functions of Microfinance Bank

One of the factors that can hinder the growth of the business or completely destroy it is lack of financial backup. Therefore, in other to tackle this issue of financial lack, microfinance banks were established. They help small business owners with microloans as a means of assistance to run or grow their business. Below are some common functions of microfinance banks:

1. They grant loans in the smallest unit

The primary functions of microfinance banks are to provide microloans to individuals or groups in need of it. These individuals or groups must meet all the requirements for acquiring such loan.

2. They help to alleviate poverty

The government’s primary objective for alleviating poverty is to provide job opportunities and provide income-generating means for businesses. Therefore, microfinance banks are the major players in this aspect as they provide credit facilities to individuals and businesses.

3. They create employment opportunities

The individuals, groups, and businesses provided with loan facilities will in turn engage the services of other people. Thereby providing employment opportunities like secretaries, receptionists, sales officers, cleaners, etc, for other people in their businesses.

4. They help to increase both small and micro businesses

They  make provisions for people with business ideas to bring their dreams to reality. Gone are the days when people think business is only for the rich and influential. Now, anyone can walk into any microfinance bank for a loan to start a business.

5. Promotion of agricultural production and development

Microfinance banks make provision of credit facilities to farmers. These farmers get these loans for buying modern-day farming equipment such as tractors, plough, etc.

Classes of Microfinance Banks in Nigeria

There are 5 various classes of microfinance institutions in Nigeria and they include;

  1. Microfinance banks owned by the local community.
  2. Microfinance institutions owned by the private sector.
  3. Microfinance banks/institutions funded by the government.
  4. Microfinance banks owned and controlled by non-government organizations.
  5. Foreign owned microfinance institutions.

Conclusion

If you are a business owner an entrepreneur, don’t hesitate to visit any of these top 10 microfinance banks in Nigeria for an excellent opportunity to grow and expand your business venture through they excellent services.

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