Microfinance banks are mini banks which do not have the capital, fame or spread of commercial banks. They are however also important as they help individuals or groups with loans especially farmers and small and medium scale entrepreneurs.
In Nigeria, Microfinance banks have led to the establishment of small and medium scale enterprises through their loaning schemes. Most microfinance however only have few branches and operates within an area such as a state, Local Government Area while there are some that have just a branch.
This therefore makes it impossible for them to compete with banks which in most cases have branches all over the country and even abroad. Microfinance banks are therefore mostly favourable for small and medium scale entrepreneurs who are able to access loans from the bank to grow their business and then pay back over an agreed period.
They also offer loans to farmers who use such loans to buy fertilizers, seeds, employ labour and other things they need for the farming season and pay back after they have harvested and sold their products.
Top Microfinance Banks in Nigeria include:
AB Microfinance Bank
AB Microfinance Bank was founded in 2002 by a financial institution owned by foreigners. The bank which is based in Lagos has assisted a lot of entrepreneurs and individuals in assessing quickly loan. The headquarters of the bank is located at no 11, Oba Akran Avenue, Ikeja Lagos with other branches.
Mainstreet Microfinance Bank
Mainstreet Microfinance Bank which commenced operation in 2009 has its headquarters at 94, Broad Street, Lagos Island, Lagos. Their email address is email@example.com. The bank was formerly known as Afribank microfinance bank.
Accion Microfinance Bank Limited
Accion microfinance bank was established in 2006. The bank’s headquarters is located on the 4th floor, Elizade Plaza, 322, Ikorodu Road, Anthony, Lagos. The products and loans are broken down into different series.
Fina Trust Microfinance Bank
Fina Trust Microfinance Bank was established in September 2009. The bank’s headquarters is located at 44, Toyin Street, Ikeja, Lagos.
Altitude Microfinance Bank
Altitude Microfinance bank was established in 2004. They are located at JP Plaza, Central Zone C ASPAMDA Trade fair complex, Badagry Expresway, Lagos.
FBN Microfinance Bank
FBN Microfinance Bank Ltd (FBNMFB) incorporated March 2008 and is a subsidiary of FirstBank
Their head office is located at 305 Herbert Macaulay Road Yaba, Lagos, Nigeria. Tel: +234 1 8103708, Email: firstname.lastname@example.org
Rehoboth Microfinance Bank
Rehoboth microfinance bank was established in 2008 and has been growing since them. Their address is at 13, Aweh crescent, Onipanu, Lagos.
Fortis Microfinance Bank Plc
Fortis Microfinance was established in 2007 and has its headquarters at Media House, plot 2135, Herbert Macaulay Way, Wuse Zone 5, Abuja.
Addosser Microfinance Bank
Addosser Microfinance Bank was established in 2008 and has its headquarters in 32, Lewis Street, Lagos Island, Lagos.
Lapo Microfinance Bank
Lapo Microfinance Bank was established in 2010 as a state microfinance bank but was able to get a national microfinance bank license in 2012. Their head office is at 18, Dawson Road, Benin City, Edo State.