How To Get A Loan From AB Microfinance Bank

Are you a business owner or entrepreneur looking for where to get money to finance your business. If yes, this article will provide you with what you need to know about the AB microfinance bank loan.

Currently, AB Microfinance bank is of the top microfinance banks in Nigeria. It is a foreign-owned financial institution domiciled in Nigeria, particularly, it has offices in Lagos state and some states in Nigeria. They offer a variety of financial services to individuals, people and Micro, Small and Medium-sized Enterprises (MSMEs) in general.

As part of its services, the bank offers credit facilities and loan to its customers. They offer loan at decent interest rates in a quick, reliable and effective way. You don’t need to have a microfinance account with the bank before you can apply for a loan.

In this post, you will get to know about the AB Microfinance accounts, loan offers, requirements, interest rates, repayment tenure and lots more

Microfinance lending is all about providing financing to people who are unable to access loans from commercial banks and other financial institutions. Microfinance loans are made for people who find it difficult to access loans from larger banking institutions.

These loans are aimed at individuals and people who are less privileged, dealing in low amounts of money, residing in poor or hard-to-access areas. These could possibly include small business owners, petty traders and people living in rural communities.

AB Microfinance Bank is committed to helping businesses grow and expand by giving them access to loan facilities. Apart from this, it improves the financial status of its customers through its deposit accounts.

AB Microfinance Bank

As a matter of fact, AB Microfinance bank is a limited liability company which is duly incorporated in Nigeria under the Companies and Allied Matters Act (2002). It is regulated and licensed by the Central Bank of Nigeria (CBN) as a full-fledged microfinance bank. They have been offering microfinance banking-related services since 2008.

The bank has a strong network of international partners and shareholders who share the same aim of enabling easy access to financial services in Nigeria. Some of the shareholders include:

  • African Development Bank.
  • International Finance Corporation of the World Bank Group.
  • Access Microfinance Holding AG (Germany).
  • KfW – the German Development Bank.
  • Impulse Microfinance Investment Fund N.V (Belgium).

Together, they have been able to set a record of establishing and managing microfinance banks across Africa and Asia. Some of the countries that benefited from the partnership include Azerbaijan, Brazil, Georgia, Liberia, Madagascar, Nigeria, Rwanda, Tajikistan, Tanzania and Zambia.

AB Microfinance Accounts

AB Microfinance bank offers banking and financial-related services to its customers. The bank has three types of accounts. In case you are interested in banking with this bank, do check out their types of accounts they offer below:

  1. AB Microfinance Savings Account
  2. AB Microfinance Current Account
  3. AB Microfinance Term Deposit Account

AB Microfinance Savings Account

This account is similar to the traditional savings account you operate with commercial banks. In case you open a savings account with AB Microfinance bank, you are entitled to enjoy the following features:

  • Favourable interest rates.
  • Free account statement.

Opening a savings account with AB Microfinance bank is relatively easy. To open an account, you have to visit the bank office or fill the online account registration form on their website.

AB Microfinance Current Account

This account is also similar to the normal current account you have with commercial banks. Their current account has all the major features you would expect to get from a current account. Some of the features of this account include:

  • No maintenance fee.
  • Encashment of cheques.
  • Free statement of account.
  • Money transfer to all commercial banks in Nigeria.
  • Standing order transfers/payments.
  • Internal transfers are free of charge.

Corporate organizations and individuals can visit any AB Microfinance bank branch around them to open an account to register an account online on their website

AB Microfinance Term Deposit Account (TDA)

AB Microfinance Bank offers Term Deposit Account (TDA). This account allows customers to deposit money for a fixed or chosen period of time and withdraw the money at attractive interest rates.

The following are the features of this account:

  • Minimum deposit: N30,000.
  • Competitive interest rates.
  • Maturity period: 30 – 360 days.

Individuals and corporate bodies must visit any branch of AB Microfinance bank to open the Term Deposit Account.

AB Microfinance Bank Mobile Banking

This microfinance bank has enabled its e-banking portal to give its customers a better banking experience. The following are the features and transactions that you can do on the AB Microfinance bank mobile banking platform:

  • Send and transfer money.
  • Receive money.
  • Pay bills.
  • Buy Airtime.
  • Buy Data.
  • 24/7 access to account.
  • Repay loans.
  • Get account statement.
  • Account balance enquiry.
  • View account transactions.

Customers are to visit the bank to register for the AB Microfinance online banking.

AB Microfinance Bank POS Machine

ab microfinance loans

If you are a merchant or businessman, you can request for a POS machine from the AB Microfinance bank, The Point of Sale (POS) allows you to receive payments from your customers. Your customers pay you with their card instead of cash.

You can request for a POS machine online on their website or when you pay a visit to any of their branches. , They’ll give you a form to fill, fill the form and submit it to the bank. You should expect your POS machine in 15 days.

AB Microfinance Bank Credit Card

The bank issues a debit card to their customers for them to withdraw cash at ATMs. Additionally, the debit card can be used to make online payments and pay for goods on POS machines. You can request an ATM card online on their website or when you pay a visit to any of their branches.

AB Microfinance Bank Loan

One of the core services of AB Microfinance bank is the provision of loans to people. However, they do not require applicants to open an account before disbursing loans.

Applicants can borrow a minimum of ₦15,000 (fifteen thousand naira) and a maximum of ₦20,000,000 (twenty million naira). However, this depends on the applicant capacity to repay the loan.

The AB Microfinance Bank loan is mostly made for existing businesses or businesses that are already in operation. Also, they offer housing/house improvement loans to people.

AB Microfinance Bank offers three types of loans namely:

  • Micro Loans.
  • SME Loans.
  • Housing Loan.

Micro Loans

The microloans offer entrepreneurs access to loans in a quick and transparent way. The loan amount ranges from ₦15,000 (fifteen thousand naira) to ₦3 million (three million naira) with a maximum maturity of 18 months.

The features of the Micro Loan include:

  • Flexible documentation requirements.
  • No borrower groups as applicants are responsible for their loans.
  • Clients get free SMS reminder on their monthly repayments.
  • Long-standing clients with outstanding repayment record will be eligible for successive interest rate discounts and quick loan processing.
  • It doesn’t require audited financial statements.
  • No cash collateral required.
  • It requires no mandatory deposits/savings account with the bank.
  • Flexible collateral arrangements depend on the loan size.
LOAN TYPE AMOUNT INTEREST RATE
Business Flexi ₦15,000 to ₦100,000 6.6% (on reducing balance)
Business Flexi ₦100,001 and ₦500,000 6.1% (on reducing balance)
Business Max ₦500,001 and ₦1,000,000 5.7% (on reducing balance)
Business Max Plus I ₦1,000,000 and ₦2,000,000 5.2% (on reducing balance)
Business Max Plus II ₦2,000,001 and ₦3,000,000 5.0% (on reducing balance)

A one-off disbursement fee of 1% will be charged on the loan amount. Loans above ₦20,000,000 (twenty million naira) are offered at an interest rate of 1% to 1.5%.

Clients are to visit the bank and meet the loan officers to indicate their interest. If the micro loan is small for your business, you can check out the SME loan.

SME Loans

This loan package is specially made for the owners of Small and Medium-sized Enterprises. If you own a business, you can get access to this loan from AB Microfinance bank.

You do not need to have an account with the bank or have funds in your account for you to get the loan. All that is needed is for you to have an existing and viable business venture.

The loan amount ranges from ₦3,000,000 to ₦20,000,000 with an interest of 3% to 4.7% (On reducing Balance). Furthermore, it comes with a one-off disbursement fee of 1%. The features of the SME Loan include:

  • Loan amount ranges from ₦3,000,000 to ₦20,000,000. The highest you can get as a new client is ₦10,000,000.
  • Competitive Interest Rate starts from 3% monthly on reducing balance.
  • Disbursement fee of 1% of the loan amount.
  • Maturity period ranges from 6 to 24 months with equal monthly instalments.
  • They accept varieties of collateral items.
  • Loans are disbursed within a week after the necessary documents are submitted.
  • Clients get free SMS reminder on their monthly repayments.

Housing Loan

The housing loan is created to provide people with funds to solve their housing and accommodation challenges such as house renovation, house construction etc. Some of the features of this loan include:

  • Access to housing loan without compulsory savings or equity contribution.
  • Free expertise which includes house design and bill of quantities
  • Access to quality and original building materials and building materials retailers network.

The housing loan is for business owners and salary earners inclusive. The loan amount ranges from ₦300,000 to ₦3,000,000 with an interest of 5% to 5.5% (On reducing Balance). Furthermore, it comes with a one-off disbursement fee of 1%.

AB Microfinance Loan Requirements                            

The AB Microfinance bank loan requirements allow you to know if you are eligible to get their loan. The requirements are as follows:

  • Applicants must be aged 21 and above.
  • Applicant must have a valid means of identification. You can identify yourself with a National I.D card, Driver’s license, Voter’s card, International Passport etc.
  • Applicants must reside in Nigeria.
  • Applicants must own a business. You will produce your business documents, goods’ receipt, shop rent receipt, invoice, Certificate of Incorporation (if you have) to prove your ownership of the business.
  • The business of the applicant must be legitimate. The business must be verifiable and genuine.
  • The business of the applicant must have existed within a time frame.
  • The business of the applicant must be located within the bank’s lending area. At as the time of writing, AB Microfinance bank has offices in Lagos, Ogun and Oyo state. This means that your business must be located within Lagos, Oyo and Ogun state axis.
  • If you have an online business, you must be ready to produce tangible evidence of the business and prove your ownership of the business.
  • Applicants must produce a guarantor. You must produce at least one guarantor to get a loan.
  • Applicants must produce collateral such as property, household equipment, business tools and equipment, goods in stock, vehicles and other assets.

How To Apply For AB Microfinance Bank Loans

ab microfinance bank loan form

Getting a loan from AM Microfinance bank is simple. Luckily, we have outlined five major steps for you to follow.

1. Visit The Website

The loan application portal can be accessed via the website. The website is the fastest and most secure way of getting the loan.

2. Enter Your Information

Next, you will have to produce some information about the loan, the amount you want to borrow, the purpose of the loan and when you intend to repay the loan.

3. Provide Your Personal Details

Your personal information will be required before you submit your application. Ensure that you do not enter any wrong information about yourself. Make sure that your information is accurate and correct before submitting.

4. Submit Your Documents For Approval

You will be required to submit some documents about your business. These documents could be a certificate of incorporation, business name registration, shop receipt, invoice etc.

5. Wait For Result

After submitting the required documents, your loan application will be reviewed by the loan officers. You should expect a result or feedback about your application within 48 hours after submitting your application.

Your application can either be declined or approved. If approved, you will get a loan to your account and the bank will give you details about the repayment tenure. If it is declined, you will be given reasons why you didn’t qualify for the loan.

Alternatively, you can visit any AB Microfinance bank branch to speak with the loan officers and customer care representatives to get a loan.

Interest Rate

The interest rate isn’t fixed, it differs depending on the type of loan collected. The interest rate is very competitive. You will be given a favourable interest rate if you have an account with the bank and if you are prompt in repaying your loans.

Repayment

The loan repayment tenure is for a maximum of 18 months for personal loans. As for the business and SME loans, the repayment period if from 6-24 months. At the end of the repayment period, you are expected to have made payment for the loan and the interest attached to it.

There are several ways you can repay the AB Microfinance loan. You can repay your loan by POS, bank deposit or bank transfer. There’s no limit if you are paying by bank deposit, but if you paying through bank transfer, the maximum amount you can pay is ₦5 million.

You are advised to make your loans as at when due. Failure to repay your loans decreases your credit score and makes it difficult for you to get future loans.

Loan Calculator

They have provided a loan calculator on their website to give you insights on the loan amount you can borrow and how much to pay back.

Pros

  • High loan amount.
  • Decent interest rates.
  • No borrower group.
  • Less paperwork and documentation.
  • Flexible choice of repayment.
  • Maximum repayment tenor or 24 months.

Cons

  • Collateral required.
  • Applicants must be owners of a business venture.
  • Guarantor required.
  • Geographic restrictions to Lagos, Oyo and Ogun state.
  • On-site assessment by a loan officer.

Contact Details

You can reach out to the bank for questions and issues concerning their services.  The AB Microfinance bank can be contacted by phone on 0902 496 9999 or 0902 496 9778. In addition, you can chat the customer care team on 0902 496 9778 (WhatsApp).

Head Office

You can visit the bank to speak with the loan officers and staffs on anything concerning your account or loan. The head office of the bank can be found at No 28, Akintoye Shogunle Street, Ikeja, Lagos State.

BRANCHES  ADDRESS CONTACT
HEAD OFFICE 28, Akintoye Shogunle Street, Ikeja, Lagos. 0902 496 9999
IKEJA 11, Oba Akran Avenue, Ikeja. 01-2122387,
01-2122386
OSHODI 12 Oshodi-Apapa Expressway, by Oshodi Oke Bus Stop Opposite Mecure Healthcare Limited, Oshodi, Lagos. 07098119475, 07098119476,
07098119477, 07098119478
IPAJA 319 Ipaja Road, Opposite Government College, Iyana-Ipaja, Lagos 07027996478,
07027999467,
07027996479,
07027996480,
07027996477
SURULERE 29B Itire Road, Surulere, Lagos 07027996474, 07027999466, 07027996473, 07027996475 07027996476
KETU 56 Ikosi Road, Ketu, Lagos 07027996504,
07027996505,
07027996471,
07027996506,
07027999468
APAPA 74 Mobil Road, Ajegunle, Apapa 07027996501, 07027999469, 07027996502, 07027996503, 07027996469
ALABA INT’L 20/22 Ojo-Igbede Road. Chemist Bus Stop, Alaba International Market 07027999479,
07027999472,
07027999480
TRADE FAIR Zone D4 Aspamda Plaza, Trade Fair Complex, Badagry Expressway, Lagos State. Former Sterling Bank Building 07027996511,
07027999481,
07027996468,
07027996494,
07027996510
LAGOD ISLAND 26, Idumagbo Avenue, Lagos Island 07027996496,
07027996497,
07027996498,
07027996499,
07027996500
VOLKS 179, Lagos Badagry Expressway Volks Bus Stop, Lagos 07027996507,
07027996508,
07027996509,
07027996466,
07027996481
BARIGA 72, St.Finbars Road, By Chemist Bus Stop, Akoka, Lagos. 07027996467, 07027999492, 07027999482, 07027996493, 07027996482
OKE ARIN No 18, Ijaiye Street, Idumota, Oke Arin Market, Lagos 07027999470, 07027996488, 07027996489, 07027996490, 07027996491
IKORODU 75, Ipakodo Road, Opposite Mobil petrol station, Ebute, Ikorodu, Lagos 07027996483, 07027996484, 07027996485, 07027996486, 07027996487
IKOTUN 26, Isolo Egbe Road, Beside Synagogue Church, Ikotun, Lagos
07027999483,   07027999484, 07027996495, 07027999485, 07027999486
DUGBE Rational Building, 22, Oke Bola Road, Behind Femi Johnson Plaza, Dugbe Ibadan. Oyo State 02-2918708, 02-2918709, 02-2918730, 02-2918731
GBAGI Lamlat Shopping Complex, New Gbagi Market Road, Ibadan, Oyo State 01-2934865, 01-2934866
BODIJA Block A6, IBNLG Ultra Modern Shopping Complex, Bodija, Ibadan, Oyo State. 09024970065
ABEOKUTA Oluwatoyin House, Lalubu Road, Oke-Ilewo, Abeokuta, Ogun State 09024970068
OTA 129, Idiroko Road, Ota, Ogun State 09024970067
ARUNA 132A, Aruna Bus stop, Lagos Road, Ikorodu, Lagos State 09024970069
AJAH Lekki-Epe express rd, Km 22 (The King of the Universe Plaza) Ilaje bus stop, Ajah, Etiosa LGA, Lagos State 09024969469
IJEBU-ODE 198, Folagbade Street, Along Ibadan Road, Ijebu-Ode 09024969210

Conclusion

This article has provided you with an in-depth analysis and information about the AB Microfinance Bank loan. AB Microfinance bank offer loans to businesses, it is difficult for you to get a loan if the purpose isn’t business-related.

1 thought on “How To Get A Loan From AB Microfinance Bank”

  1. Hi my name is michelle im starting my own bisness from home, a daycare and aftercare.
    I would please like you to help me with that , by helping me with a loan .

    kind regards; Michelle Ayres

    Reply

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