Top 10 Microfinance Banks in Nigeria
According to the information available on the Central Bank of Nigeria’s official website, there are approximately 916 licensed microfinance banks operating in Nigeria. These banks provide essential financial services to the public in a seamless manner than the traditional banking system.
As a result, many local businesses, unemployed individuals, and unbanked groups have greatly benefited from their services.
Despite being a very popular country, Nigeria has about 64% youths that are financially included and these was an opportunity for the microfinance industry to grow. Fortunately, the sector is fast growing and has been doing a very good job.
This article will be focusing on the top 10 Nigerian Microfinance banks that are notable for their seamless and efficient financial services in Nigeria.
- KUDA Microfinance Bank
Kuda was established in 2016 under the name Kudimoney, which majorly focus on lending money digitally and saving money via digital means. Over the years, the company took the Nigerian financial industry by the storm and the rebranded as “KUDA “.
Not only did KUDA made a big wave among the youth as the bank of the free, it also raised about $90 million and it is currently operating as one of the giants of Microfinance banking in the industry.
If you’re keen to learn more about KUDA Bank, be sure to check out its website today. Don’t forget to check out the company’s mobile app if you’re interested!
- LAPO Microfinance Bank
LAPO has always been synonymous with the traditional lending services for a very long time, I can clearly recall its existence from my basic school days, nearly 12 years ago.
LAPO was founded in the early 80s, primarily to help the less privileged Nigerians and provide immediate aids to curb the harsh economic circumstances that occurred during the structural adjustment programme under General Ibrahim Babangida.
Lapo has since then transitioned into one of the best-known microfinance banks in Nigeria for its consistent effort in empowering the low-income households through the provision of a responsive financial services on a sustainable basis.
You can discover more about LAPO Microfinance and its loan offerings by visiting their website.
- ACCION Microfinance Bank
ACCION is also similar to LAPO in pioneering the traditional lending services in Nigeria. ACCION was established in 2006 and has been focusing on its goals to empower micro and medium size businesses and low-income earners through a sustainable means.
The company financial services include loaning to small businesses, education and mortgage loans among others. Eligible users can access loans of up to N150,000 through either ACCION’s mobile banking app or USSD services.
- Asset Microfinance Bank
According to details from its website, Asset Microfinance Bank was founded by the Central Bank of Nigeria to primarily provide personal, business, and payday loans to Nigerians.
The bank also offers savings and investment options in addition to these loan services. When mentioning the names of the top microfinance banks in Nigeria, there will be no discussion if Asset microfinance bank isn’t mentioned.
- Fina Trust Microfinance Bank
Fina Trust Microfinance pride itself as Nigerian foremost microfinance bank. This microfinance bank was founded in 2009, Fina Trust Microfinance Bank is affiliated with LOLC Group, the largest non-banking corporate entity in Sri Lanka.
Fina Trust offers a variety of services such as quick loans, salary advances, SME loans, education loans, and financial asset financing. They also provide different account options such as savings, current, and fixed deposit accounts.
- AB Microfinance bank
AB Microfinance Bank was founded in 2008 and is headquartered in Lagos. The bank positions itself as “a socially responsible choice for micro and small enterprises” on its website. It provides customers with access to various loan options, including micro-loans, SME loans, and housing loans.
AB Microfinance Bank allows customers to open savings accounts, current accounts, and fixed deposit accounts. They also offer mobile banking services and a range of related banking options to enhance customer convenience.
- Mutual Trust Microfinance Bank
Mutual Trust Microfinance Bank stands out as one of Nigeria’s top microfinance institutions. Ever since it rebranded from Mark de Rock Microfinance Ltd in April 2016 and having gone through a management overhaul, the bank has embarked on an ambitious journey to transform the microfinance banking sector in Nigeria.
Eligible customers can complete loan applications in under ten minutes, and approvals are typically processed within ten hours. Additionally, Mutual Trust offers flexible repayment plans
- VFD Microfinance Bank
The VFD Microfinance bank is quite similar to KUDA Bank. VBank has it’s also known has positioned itself as the go-to choice for the trend-conscious. It is a subsidiary of VFD Group, which was founded in 2009 and began operations in 2011.
On its website, VBank claims to offer an incredible banking experience for customers to maximize their benefits. The bank app is mobile friendly, responsive and has earned a lot of positive reviews from customers.
- BoI Microfinance Bank
BOI Microfinance Bank was established in 2002 and it operates as a subsidiary of Nigeria’s oldest development bank, the Bank of Industry. As explained on its website, this microfinance institution provides a range of services for small and medium-sized enterprises, as well as low-income individuals.
BOI Microfinance Bank also facilitates savings deposit services.
Sparkle Microfinance Bank
This microfinance bank was established by the former managing director of Diamond bank. The bank pride itself as a forefront for digitalizing financial services and making it accessible to everyone including small businesses.
Users can find the Sparkle mobile app on either the Google Play Store or the iOS App Store and tap into a range of financial services. For more information, visit the company’s website.
Conclusion
The top ten microfinance banks including KUDA, LAPO, and ACCION, are not just financial institutions; they are important players in empowering small businesses and individuals who often lack access to traditional banking services. Aside providing digital financial services to individuals, they also provide lending services through a sustainable and seamless platform.