There are more than 900 microfinance banks in Nigeria, and they all provide essential financial services to users. In this post, we will discuss the top 10 microfinance banks in Nigeria.
Difference between microfinance banks and commercial banks?
Microfinance banks provide similar financial services as Commercial banks and other standard banks. However, there are many differences.
The most noticeable difference is the size. Microfinance banks are much smaller than your usual commercial banks. While the latter has a bigger structure and numerous branches across the county, a microfinance bank may not even have up to 5.
One thing you should note about microfinance banks is their less-strict system. Not every individual or business will be qualified for a bank loan.
On the other hand, microfinance banks do lend money to individuals and business owners without demanding collateral (in most cases).
However, you should note that a microfinance bank can not do some things that your usual commercial banks can do. Also, the latter can grant higher loan amounts than the former.
Now let’s look at the top 10 microfinance banks in Nigeria.
10 Best Microfinance banks in Nigeria
Below are the top 10 microfinance banks in Nigeria:
1. Fina Trust Microfinance Bank
Fina Trust bank is one of the pioneer microfinance banks in the country. Its final banking license was obtained from the Central Bank of Nigeria in September 2009.
Fina Trust Microfinance Bank started operations in October 2009. Today, it’s one of the top 10 microfinance banks in Nigeria.
This bank provides quick loans, salary advances, SME loans, education loans, and financial asset financing to its customers.
It also has multiple types of account services. These include savings and current and fixed deposit accounts. Fina Trust MFB is situated at 46, Toyin Street, Ikeja, Lagos, Nigeria.
Read Also: Top digital banks in Nigeria
2. LAPO Microfinance Bank
LAPO microfinance bank was founded in the 1980s. Initially, it existed solely for the purpose of helping less-privileged Nigerians to survive through the tight economic situation in the county.
Over time, LAPO became a fully developed microfinance bank, and today, it’s among the top 10 in Nigeria. Almost every adult knows LAPO, you can ask around. Although you’re probably going to hear funny stories about their payment structure, most of them are true.
LAPO microfinance bank is widely known for its very strict repayment rules, which may be hard for some users to comply with.
Its head office is located at LAPO Place, 18, Dawson Road, P.M.B. 1729, Benin City, Edo State, Nigeria.
3. Mutual Trust Microfinance Bank
Formerly Mark de Rock Microfinance Ltd, this microfinance bank took up its current name in 2016, when it rebranded following a change in management.
The loan services offered by this microfinance bank are very flexible. Customers can fill out and submit a loan application within minutes. Loan applications can be reviewed and approved in less than 12 hours.
4. KUDA Microfinance Bank
Almost everyone with a smartphone has heard of Kuda Bank, one way or the other. Kuda Bank calls itself the “Bank of the free,” and heck, it truly is.
Kudi Money was the first online-only lending and savings service in Nigeria. In 2019, it was rebranded to what everyone now knows as Kuda Bank.
Kuda Bank charges no fees for transactions on the app, and it’s easily accessible to anyone with a smartphone.
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5. Rehoboth Microfinance Bank
This microfinance bank provides loans and other financial services majorly to small-scale traders that don’t see the need to have a bank account.
Rehoboth is one of the top 10 microfinance banks in Nigeria, thanks to its diligence over the years. Its head office is situated in Adebowale House, Block B 150 Ikorodu Road, Onipanu Bus Stop, Lagos State.
6. ACCION Microfinance Bank
ACCION Microfinance Bank was founded in 2006, and offers almost the same financial services as LAPO. It helps micro-entrepreneurs and low-income earners by offering them financial services that will help them sustain their daily life.
ACCION Microfinance Bank also provides many loan types. Some of them are loans to small businesses, home-ownership loans, education loans and lots more.
Also, customers can apply for and obtain quick loans of up to N150,000.
7. AB Microfinance Bank
AB Microfinance Bank was founded in 2008. It is one of the top choices for micro and small enterprises in Nigeria. Their customers can always apply for individual, business and housing loans.
Aside from loan services, AB Microfinance Bank also allows people to create savings, current accounts and fixed deposit accounts.
Recommended: AB Microfinance Bank loans and all you need to know
8. Altitude Microfinance Bank
Altitude Microfinance Bank Limited is also on our list of the top 10 microfinance banks in Nigeria. It is duly licensed by the Central Bank of Nigeria (CBN), and it aims to help small business owners and low-income earners.
This is done through the provision of low-interest loans and other financial services. Altitude Microfinance Bank is located at 1, Thanni Olodo Street, Jibowu-Yaba, Lagos State, Nigeria.
9. VFD Microfinance Bank
VFD is similar to KUDA Bank, as they both support digital banking. VBank is a subsidiary of the VFD Group, which was founded in 2009 and started financial operations in 2011.
Whenever we talk of the pioneer digital banks in Nigeria, VBank cannot be left out, as it’s one of the top 10 microfinance banks in Nigeria. Also, the mobile app has a fast and smooth interface.
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10. BOI Microfinance Bank Nigeria
BOI MFB is a subsidiary of the Bank of Industry Nigeria.
The Bank of Industry Limited (BOI) is the first, largest and most successful development financing institution in the county.
This microfinance bank provides various financial services to individuals and small and medium-sized businesses.