This is a Guide on How To Borrow Money From AB Microfinance Bank online.
Microfinance banks are rapidly expanding in Nigeria, lending specifically to small and medium-sized businesses (SMEs). AB Microfinance has had a long and successful history since it was established in 2002. One of those banks is it.
It has locations all over the country, including Lagos, Oyo, Ogun, and Ondo States.
AB, like Nirsal Microfinance Bank, provides individuals and small businesses in need with stress-free loans at low interest rates. They have a license from the Central Bank of Nigeria and are committed to making financial services more accessible to everyone in the country.
AB microfinance loan requirements?
- A valid ID card.
- Proof of business ownership.
- At least one guarantor.
- Flexible collateral arrangement depending on the size of the loan.
- Your business location must be within the bank’s lending area (Lagos, Oyo, and Ogun state), and it must have existed a particular period.
- You do not require an account with AB microfinance to get a loan
Services offered by AB microfinance
AB Microfinance banks offer two major services – Savings and account, ebanking, and Credit. Let’s look at more details of each:
Savings and account
AB Current Account:
You get limitless access to your money with this account, every day and all the time. There are no limitations and it is accessible to both private individuals and corporate entities. Some of its advantages include:
- No maintenance fee
- SMS alert services, and
- Encashment of cheques.
AB Savings Account:
You can keep your money in this account while also benefiting from a good interest rate. Both private persons and business entities can access your money at any moment without losing any interest on withdrawals.
Some of its benefits are:
- Attractive interest rates
- Simple account opening process, and
- Free statement of account.
AB Term Deposit Account:
You can fix your money in a bank account for a specific period of time while earning exceptional interest rates. Some of its advantages include:
- Minimum of N30,000
- Competitive interest rates
- Maturity duration of 30 – 360 days.
Types of Loans Given by AB Microfinance Bank
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- SME Loan.
- Housing Loan.
The microloan of AB MFB is a type of loan that is basically meant for entrepreneurs. This very loan gives business owners the opportunity to access loans swiftly, and very fast.
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The accessable amount ranges from fifteen thousand naira (N15,000) to three million naira (N3,000,000), and it’s repayable within eighteen (18) months time.
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One need not to have savings account with the bank or make any form of deposit before accessing loan(s).
Statement of financial summary is not required to access loan.
Only a flexible collateral is required, and not something so big that will scare clients away.
The documents to complete the process is quite easy to obtain from the bank.
Old clients with good credit ratings are being given interest rate discount successively.
Anyone can easily access this loan without using any group, or firm. Loan decision is made by the borrower, unlike other loan providers.
Loan disbursement take place within three (3) working days, as long as the necessary criteria and documentations has being done.
The rates applied is based on the disbursable amount attached to the product;
Flexi: N15,000 – N100,000 (6.6%)
Plus: N100,000 – N500,000 (6.1%)
Max: N500,000 – N1,000,000 (5.7%)
Max Plus I: N1,000,000 – N2,000,000 (5.2%)
Max Plus II: N2,000,000 – N3,000,000 (5.0%)
A one off fee of 1%, insurance fee of 1.5% (one off charge).
2. SME Loan
AB MFB will never in anyway relent in making things easy for entrepreneurs, who are seeking financial assistance in terms of loan access.
As a financial institution that lends money to clients without having them saving money or owing an account with them, it will be more beneficial if you as a client who owns an existing business, opt in to this product. Definitely, you are likely to be given the desired loan almost immediately.
– For existing business, such clients can gain access to loan worth three million naira (N3,000,000) to twenty million naira (N20,000,000).
– The interest rate is competitive on a reducing balance offering with a starting point of 3% interest, on monthly basis.
– A disbursement fee of 1% is being charged for every loan disbursed.
– A uniform monthly installment is involved after the maturity period of 6 – 24 months.
– To make it flexible, any item presented as collateral is being accepted to access desired option(s).
– The effectiveness of the loan is within three (3) working days, as long as all requirements have being met.
– The amount disbursed and interest rate is based on the SME loan option applied for.
New Client: N3,000,000 – N20,000,000 (3.0% – 4.7% interest).
Repeat Client Up: N30,000,000 (2.8% – 3.8% interest).
Disbursement levy of 1% (one off payment)
Insurance charges 0.6% (one off payment).
3. Housing Loan
For entrepreneurs who wishes to own a house, the right loan option to go for is the housing loan offered by AB Microfinance bank.
However, clients who has a building or shop that is due for renovation can opt in for this type of loan.
– Client not under compulsion to own a savings account or make deposit before accessing the loan.
– No audited financial statement is required prior to the loan collection.
– Only flexible collateral is required.
– Uses an easy document.
– A succesessive interest rate discount is being given to long standing customers with good records.
– No borrower group is needed to access the loan, as it’s strictly based on individual who take his/her decisions.
– Loan is being disbursed within three (3) working days.
The amount and interest rate for the housing loan is given below;
Business Owners: N300,000 – N1,000,000 (4.5% interest).
Salary Earners: N1,000,000 – N3,000,000 (4.0% interest).
Charges for loan disbursement 1% (one off fee)
Insurance levy 1.5% (one off fee/charge).
Requirements For AB MFB Loan
- Anyone applying for a particular loan product offered by the bank must be 21 years and above.
- Applicant(s) must reside in Nigeria.
- Applicant(s) must be the rightful owner of the business used in collecting the loan, and not a third party.
- The business location must not be far from that of the bank.
- Applicants must be active in business for the past months (at least 12 months).
Loan officer of AB Microfinance Bank
All applicant are assigned to a loan officer, who will assist the client with the necessary steps to yield success in their loan pursuit from the beginning till the end.
So far, AB MFB has an excellent record in loan services, with a less stressful documentation for all product option.