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.
The AB Microfinance Bank, abbreviated as AB Bank, is one of the leading financial institutions in Nigeria that offers various loan schemes for different purposes. The bank’s lending and deposit products are designed to suit the specific requirements of individuals, small and medium enterprises, and corporate bodies. To meet the needs of its ever-growing clientele, this bank has also introduced a range of collateral-free loans that all categories can avail of, including those who do not have any kind of security to offer as collateral.
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 loans to its customers. They offer loans 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.
This section will tell you how to get a loan from AB Bank by explaining its eligibility criteria. First, keep in mind that AB Bank normally doesn’t give loans to individuals but rather to businesses that have been operating for a period specified by the bank and have good credit history. 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.
As a matter of fact, AB Microfinance bank is a limited liability company that 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.
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Table of Contents
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 the types of accounts they offer below:
- AB Microfinance Savings Account
- AB Microfinance Current Account
- 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
If you are a merchant or businessman, you can request 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 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 Loans
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.
AB Microfinance 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.
AB Microfinance 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.
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%.
Requirements For AB Microfinance Bank Loan
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
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.
AB Microfinance 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.
How To Repay (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.
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.
- High loan amount.
- Decent interest rates.
- No borrower group.
- Less paperwork and documentation.
- Flexible choice of repayment.
- Maximum repayment tenor or 24 months.
- 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.
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 with the customer care team on 0902 496 9778 (WhatsApp).
You can visit the bank to speak with the loan officers and staff 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.
|HEAD OFFICE||28, Akintoye Shogunle Street, Ikeja, Lagos.||0902 496 9999|
|IKEJA||11, Oba Akran Avenue, Ikeja, Lagos||01-2122387,|
|OSHODI||12 Oshodi-Apapa Expressway, by Oshodi Oke Bus Stop Opposite Mecure Healthcare Limited, Oshodi, Lagos.||07098119475, 07098119476,|
|IPAJA||319 Ipaja Road, Opposite Government College, Iyana-Ipaja, Lagos||07027996478,|
|SURULERE||29B Itire Road, Surulere, Lagos||07027996474, 07027999466, 07027996473, 07027996475 07027996476|
|KETU||56 Ikosi Road, Ketu, Lagos||07027996504,|
|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,|
|TRADE FAIR||Zone D4 Aspamda Plaza, Trade Fair Complex, Badagry Expressway, Lagos State. Former Sterling Bank Building||07027996511,|
|LAGOS ISLAND||26, Idumagbo Avenue, Lagos Island||07027996496,|
|VOLKS||179, Lagos Badagry Expressway Volks Bus Stop, Lagos||07027996507,|
|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, Idi Iroko 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|
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.