How to Apply for Loan on AB Microfinance Bank – AB Microfinance Bank is a national microfinance bank licensed by the Central Bank of Nigeria (CBN), with its head office in Lagos and branches spread across Lagos, Oyo, Ogun, Ondo, Anambra, and Abia State. The bank offers entrepreneurs the opportunity to easily access loans in a quick, transparent, and efficient environment. In this article, we will explain how to get loans from AB Microfinance Bank.
Requirements for AB microfinance loan
– A valid means of identification (National ID card, Driver’s license, International passport, or Voter’s card)
– Proof of address (Utility bill, Rent receipt, or Tenancy agreement)
– Proof of business ownership (Business registration certificate, Tax clearance certificate, or Business permit)
– Bank statement for the last six months
– Two passport photographs
– Be a Nigerian citizen
– Be at least 18 years old
-Have a stable source of income
Types of Loans Offers by AB Microfinance Bank
AB Microfinance Bank offers different types of loans for different purposes Some of the loan products are:
– Microloans: These are loans for small-scale businesses that need working capital or asset financing. The interest rate varies from 5% to 6.6% per month on a reducing balance basis.
– SME loans: These are loans for medium-sized enterprises that need expansion capital or equipment financing. The interest rate varies from 3% to 4% per month on a reducing balance basis.
– Housing loans: These are loans for individuals who want to buy or renovate their own houses. The interest rate is 2% per month on a reducing balance basis.
E-banking
AB microfinance also has other services like commercial banks, which makes accessing their services much easier. These services are:
- Payments/ Cash Deposit.
- Mobile Banking.
- Instant Fund Transfer.
- Debit Card/ ATM Card.
- Point of Sale (POS).
- NIBSS Instant Payment (NIP).
See also: VFD Microfinance Bank Review
How to Apply for Loan on AB Microfinance Bank
Step 1: Visit the bank’s website at https://ab-mfbnigeria.com/ and click on the “Apply for a Loan” button. You will be directed to a page where you can fill out an online application form with your personal and business details. Alternatively, you can visit any of the bank’s branches and speak to a loan officer who will guide you through the application process.
Step 2: The second step is to undergo an on-site assessment by one of the bank’s lending staff. The staff will visit your business location and evaluate your business performance, cash flow, and potential. They will also verify your collateral arrangements and ask you some questions about your loan purpose and repayment plan.
Step 3: The Third step is to wait for the loan approval decision by the bank’s credit committee. This usually takes three working days after submitting all the required documents and completing the on-site assessment. You will be notified of the decision via SMS or email.
Step 4: The fourth step is to sign the loan agreement and collect your loan disbursement. You will be required to pay a one-off disbursement fee of 1% of the loan amount and an insurance fee of 1.5% of the loan amount. You will also be informed of your monthly repayment amount, interest rate, and loan duration.
Step 5: The Fifth step is to repay your loan on time and in full. You can repay your loan through various channels such as mobile banking, debit cards, point-of-sale payments, and cash deposits. You will receive a free SMS reminder for your monthly repayments. If you repay your loan promptly and consistently, you will qualify for successive interest rate discounts and faster loan processing for future loans.
See also: How to Apply for Sterling Bank Loans
How much can I borrow from AB Microfinance and what is the interest rate?
The loans range from N15,000 to N5,000,000 with a maximum maturity of 18 months. The amount accessible to you depends on your repayment accessibility. During this process, business inventories, assets, and other criteria are taken into consideration.
Here are some additional tips for getting a loan from AB Microfinance Bank:
- Make sure you understand the terms and conditions of the loan before you sign the loan agreement.
- Be prepared to provide the bank with all of the required information.
- Have a good credit score.
- Provide collateral if possible.
- Make sure you can afford to repay the loan.
To learn more about AB Microfinance Bank and its loan products, you can visit their website or contact their customer care service at customercare@ab-mfbnigeria.com or (+234)902 496 9999.
Conclusion:
Obtaining a loan from AB Microfinance Bank can be a viable option to meet your financial needs. By conducting thorough research, preparing the necessary documentation, engaging with loan officers, and maintaining open communication, you increase your chances of securing a loan. Remember to carefully review the loan terms and ensure that the loan aligns with your financial objectives and repayment capabilities. AB Microfinance Bank’s dedication to empowering individuals and businesses through responsible lending makes it a reliable institution to explore for financial assistance.
See also: How to Apply for Sterling Bank Loans
