Top 3 Nigerian Micro-finance Banks That Grant Loans without Collateral

Top 3 Nigerian Micro-finance Banks That Grant Loans without Collateral
Image Credit: LAPO Nigeria

In Nigeria, loans can be obtained from various financial institutions but one of the major obstacles is that most of these institutions lay down strict conditions for loan acquisition. Borrowing money from commercial banks could be quite awkward especially when you’re first required to open a corporate bank account which is to be run for a few months. Even when you’re requesting for as low as #50,000, commercial banks still frustrate you with a number of strict conditions which you must have fulfilled.

Nevertheless, the emergence of micro-finance banks has paved the way for better alternatives through which small entrepreneurs and business owners can obtain immediate loans without providing any collateral facilities. Therefore, we have decided to come up with the top 3 Nigerian micro-finance banks that grant loans without requesting for collateral requirements.

LAPO Microfinance Bank Ltd

LAPO is an organization fully known as Lift Above Poverty Organization. It is one of the Nigerian banking institutions that are committed to granting financial assistance to average Nigerian entrepreneurs. The requirements for obtaining loans from LAPO are very simple and straightforward. Besides the fact that micro-entrepreneurs do not have to lay down collateral securities in course of acquiring loans, LAPO allows borrowers to pay back loans in the form of installments.
AB Microfinance Bank Nigeria

AB Microfinance Bank Nigeria is a great platform for micro-entrepreneurs and small-business owners to obtain loans for immediate business purposes. It is best known for its reliable, genuine and expeditious medium for granting loans to borrowers. Most importantly, many borrowers prefer AB Microfinance Bank Nigeria because it offers a medium –known as Maxiplus –that allows borrowers to obtain as high as #1.5 million as loan.
The task of obtaining loans from AB Microfinance is quite convenient as borrowers are not necessarily required to have any savings accounts. The duration for paying back loans may vary from 5 months to 1½  years but this is usually determined by the amount you wish to obtain as loan.
Mainstreet Bank Microfinance Bank Ltd

As a subsidiary of the parent company Mainstreet Bank, Mainstreet Bank Microfinance Bank (MFB) is an institution –authorized by the Central Bank of Nigeria –to grant loans to micro-entrepreneurs and small-business owners in Nigeria. Mainstreet MFB –which commenced operations in 2009 –is acclaimed for its massive disbursement of loans to Nigerians. Having remained operative for years, the institution has offered the total of loans valued in excess of #1.3 billion . Meanwhile, the average loan disbursement  by Mainstreet MFB is valued at #257,000.