Microfinance banks are financial institutions created for the purpose of fighting poverty in any country. In Nigeria, there are over 882 registered microfinance banks operating in Nigeria that help individuals like farmers and those who have small and medium scale enterprises with loans to start their businesses.
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.
If you own a small business, and you are looking for a trusted financial institutions to apply for a small business loan, then you should be thinking of the best microfinance banks in Nigeria that provides microfinance loans to individuals easily. The essence of these registered microlenders institutions operating in the country aside providing business loans, is to ensure that the economy is stable via its different development support programs.
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.
TOP 10 BEST MICROFINANCE BANKS IN NIGERIA (2023)
In no particular order, below are the top 10 best microfinance banks approved by the Central Bank of Nigeria to operate this 2023:
1. AB MICROFINANCE BANK
This is one of the best and oldest microfinance bank in Nigeria with branches all over the country. Created in 2008 by foreigners, this financial institution headquarters is located at 11, Oba Akran Avenue, Ikeja Lagos with other branches available. The aim of this financial institution is to empower start-up companies, businesses and entrepreneurs.
AB Microfinance bank are also one of the highest-paying microfinance banks in the country. Salary for its entry-level staff is about ₦150,000 per month. This financial institution doesn’t only give out quick loans but also ensures that a borrower makes judicious use of the amount of money borrowed. Aside its good banking services, AB microfinance bank give out loans to small scale businesses, low-income individuals and promotes SME’S. You can visit AB microfinance bank we at www.ab-mfbnigeria.com to get more information about this bank services.
2. ALTITUDE MICROFINANCE BANK
This is another top microfinance bank in Nigeria that was established in 2004, licensed by the CBN to economically empower low income earners and entrepreneurs through obtaining loans without hassles.
Second on the list with lots of experience in the banking industry, Altitude is a microfinance bank aimed at helping and supporting the less privileged people in the country by giving them loans which must be paid back.
The bank was founded in the year 2004 with its headquarters located at JP Plaza, Central Zone C ASPAMDA Trade fair complex, Badagry Expressway, Lagos. They are a force to reckon with when it comes is microfinance and banking.
3. FINA TRUST MICROFINANCE BANK
A tested and trusted bank, created in 2009. This financial institution possess all it takes to be regarded as one of the leading microfinance banks in Nigeria. It has a very conducive banking environment, dedicated staff, good and appropriate management of approach towards clients.
Fina Trust is also a reliable microfinance bank license by the Central Bank of Nigeria to operate in the country. Over the years, this financial institution has seen to the development of local SME’S, providing topnotch microfinance services to small businesses. With an excellent customer service and conducive banking environment, you can be sure of receiving the best banking service or loan for your small business.
To get more information or to contact this Fina Trust microfinance bank, visit www.finatrustmfbank.com. This bank gives loan from amount ranging from N10,000 to N100,000. The bank’s headquarters address is located at 44, Toyin Street, Ikeja, Lagos.
4. ACCION MF BANK LIMITED
Accion Microfinance Bank has empowered micro-entrepreneurs, low-income earners, traders and small business owners through its excellent microfinance services. Most people believe this financial institution to be the best among all, due to the bank’s policy on the ease of applying for loans and micro-credits.
One of the best banks in the country when it comes to giving out loans in little amount. Accion bank was created in 2006 and their headquarters address is located on the 4th floor, Elizade Plaza, 322, Ikorodu Road, Anthony, Lagos state.
This bank gives loan to mostly petty traders. It also gives loan to group of people that comes together to form a unit with the assurance of paying back the loan at an agreed time with interest. If you want to apply for a business loan, you can submit your proposal to their website at www.accionmfb.com.
5. MFP MICROFINANCE BANK
MFP microfinance bank is located in Sokoto state. It was created in 2005. This microfinance bank is one of the banks in Nigeria that render best service to its customers, with relatively low interest rate, good workers/customers relationship.
MFP microfinance bank is a tested and trusted bank that gives accurate and timely information on customers’ account.
Finally, this bank partners with Sokoto state government to help civil servants easily receive their salaries from the bank instead of waiting for the government. MFP microfinance bank is more than ‘just’ a microfinance, it’s a mini commercial bank.
6. ADDOSER MICROFINANCE BANK
Addoser is another financial institution that merits a place on our list. It was established in 2008 and is located in Lagos.
Addoser gives adds a lesser amount of interest compared to other microfinance banks. Talking about experience, Addoser has such which has kept it going from strength to strength.
7. REHOBOTH MICROFINANCE BANK
It was created by a group of business-minded people in Lagos. Rehoboth has over the years proven to be a bank that can be trusted and relied on.
Its one of the microfinance banks in Nigeria that ensures constant visitation to clients so as to check the progress of client’s business or work. Their head office address is at 13, Aweh crescent, Onipanu, Lagos.
8. FORTIS MICROFINANCE BANK
This is the first microfinance bank in Abuja (the capital state of the country). Fortis was created in 2007 and are one the best rated in the country. Their address is at Zone 5, Plot 2135 Herbert Macaulay Way, Wuse 904101, Abuja.
9. LAPO MICROFINANCE BANK
They are known for their top services, Lapo is one of the best and popular state microfinance banks in Nigeria. It comes into existence in 2010 and was licensed in 2012. They have good customer service and are capable to solve the needs of their customers. Lapo head office is located at 18, Dawson Road, Benin City, Edo State.
10. FBN MICROFINANCE BANK
FBN is one the most reliable and best microfinance banks in Nigeria. They are located in Lagos, FBN is a bank that deals with customers whose business is on the verge of collapsing. As a subsidiary of First Bank Nigeria, FBN renders help by giving loan to people.
FBN Microfinance bank were among the top microfinance banks in the country to get national recognition in its banking license as a futuristic financial institution capable of rescuing businesses, SME’S and entrepreneurs from liquidating due to the quick access to loans they give out.
To contact their head office, visit 305 Herbert Macaulay Road Yaba, Lagos, Nigeria. Tel: +234 1 8103708, Email: email@example.com.
11. KUDA BANK
Kuda is currently the best online microfinance bank in Nigeria and the first digital bank with a microfinance banking license from the Central Bank of Nigeria. One thing that makes Kuda stand out is that it is free and easy to use. Also, they also offer monthly transfers, debit and credit alerts, and you can withdraw cash from thousands of ATMs across Nigeria with no charges at all.
CLASSES OF MICROFINANCE BANKS IN NIGERIA
There are 5 various classes of microfinance institutions in Nigeria and they include;
- Microfinance banks owned by the local community.
- Microfinance institutions owned by the private sector.
- Microfinance banks/institutions funded by the government.
- Microfinance banks owned and controlled by non-government organizations.
- Foreign owned microfinance institutions.
BENEFITS OF MICROFINANCE BANKS
Microfinance banks in Nigeria are financial institutions that provide small loans, savings, and other financial services to individuals, small businesses, and organizations that may not have access to traditional banking services. Here are some advantages and benefits of microfinance banks in Nigeria:
- Access to finance: Microfinance banks provide access to finance for people who may not have access to traditional banking services due to a lack of collateral, credit history, or other requirements. This can help people start or grow their businesses, invest in their education, or meet other financial needs.
- Economic development: By providing access to finance, microfinance banks can contribute to the economic development of Nigeria. Small businesses and entrepreneurs can use the loans and other financial services provided by microfinance banks to invest in their businesses, create jobs, and contribute to the economy.
- Poverty reduction: Microfinance banks can help reduce poverty by providing access to finance for people who may not have access to traditional banking services. This can help people meet their basic needs and improve their standard of living.
- Financial inclusion: Microfinance banks can help increase financial inclusion in Nigeria by providing financial services to underserved and unbanked populations. This can help people manage their money more effectively, save for the future, and make informed financial decisions.
- Convenient services: Microfinance banks often provide convenient services such as mobile banking and online banking, which can make it easier for people to access financial services even if they live in remote or underserved areas.
Being an entrepreneur or a small business owner, it is imperative that you need the services of these 10 best microfinance banks in Nigeria to expand and grow your business through the various microfinance and excellent banking services that these recognized financial institutions offer.