AB Microfinance Bank – How to get loans from the bank

Sep 3rd, 2020

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Microfinance banks are on a rapid rise in Nigeria and especially helped small to medium-sized enterprises (SMEs) with loans. AB Microfinance is one of those banks with a rich history of success since its establishment in 2002. 

It has several branches spread across the country, including Lagos, Oyo, Ogun, and Ondo State.

Just like Nirsal microfinance bank, AB provides loans to individuals and SMEs that need it, at no stress, and competitive interest rates. They are licensed by the Central Bank of Nigeria and committed to improving financial accessibility all around the country.

Ab Microfinance Bank

What are the AB microfinance loan requirements?

  1. A valid ID card.
  2. Proof of business ownership.
  3. At least one guarantor.
  4. Flexible collateral arrangement depending on the size of the loan.
  5. Your business location must be within the bank’s lending area (Lagos, Oyo, and Ogun state), and it must have existed a particular period.
  6. You do not require an account with AB microfinance to get a loan

Services offered by AB microfinance

Savings and account

  1. AB Current Account: 

With this account, you have unlimited access to your money any day, any time. It is available for both individual and corporate bodies and has no restrictions. Some of its benefits are:

  • No maintenance fee
  • SMS alert services, and
  • Encashment of cheques.
  1. AB Savings Account: 

AB savings account helps you keep your money with an added advantage of a competitive interest rate. Your funds are accessible anytime without forfeiting interest on withdrawal, and the account is accessible to individuals and corporate organizations. 

Some of its benefits are:

  • Attractive interest rates
  • Simple account opening process, and
  • Free statement of account.
  1. AB Term Deposit Account:

The deposit account allows you to fix your money for a particular duration and gain outstanding interest rates. Some of its benefits are:

  • Minimum of N30,000
  • Competitive interest rates
  • Maturity duration of 30 – 360 days.

Credit

  1. Micro Loans: 

As an entrepreneur, you can easily access a quick loan in Nigeria through this AB Microfinance service. Loan value ranges from N15,000 to N3 Million and has maximum maturity of 18 months. 

Some features of this loan are:

  1. No compulsory deposit, savings, or cash collateral required.
  2. They do not require audited financial statement.
  3. Flexible collateral arrangements.
  4. Flexible documentation requirements.
  1. SME Loans: 

They design this service for SME owners. It offers you access to transparent and quick loans to build your business.  You can access up to N20,000,000 but require collateral, and it has a maximum tenor of 24 months.

  1. Housing Loans:

 Just as the name implies, housing loans offer you access to loans for your housing projects. The available amount ranges from N300,000 to N3,000,000. In this service, you also have access to access quality building materials and free expertise on house designs.

E-banking

AB microfinance also has other services like commercial banks, which makes accessing their services much easier. These services are:

  1. Payments/ Cash Deposit.
  2. Mobile Banking.
  3. Instant Fund Transfer.
  4. Debit Card/ ATM Card.
  5. Point of Sale (POS).
  6. NIBSS Instant Payment (NIP).

How to borrow from AB Microfinance

AB microfinance currently offers up to N5,000,000 loan, which expands to N20,000,000 for SME business owners. If you meet all the loan requirements as earlier stated, take the following steps to apply:

1) Proceed to any of their branches to make a loan proposal. Ensure you go with all the necessary documents as stated earlier and a sizeable collateral compared to the loan.

2) Your proposal would undergo an immediate on-site assessment by qualified personnel. After this, they forward it to a decision committee for final approval.

The duration before loan disbursement depends on the amount in question. For example, applying for a high-value SME loans takes a week. Also, note that:

  • A disbursement fee which is 1% of the disbursed amount, is charged for all loans.   
  • All loan proposals are to be made in any of AB microfinance official offices. You can visit their official website at https://www.ab-mfbnigeria.com/contact.php to see the closest office to your location and their phone contact.

How much can I borrow from AB Microfinance and what is the interest rate?

The minimum borrowing amount for AB microfinance is N15,000, and a maximum of N20,000,000. The amount accessible to you depends on your repayment accessibility. During this process, business inventories, assets, and other criteria are taken into consideration.

Conclusion

AB microfinance offers one of the easiest ways to get loans, with only a valid ID and proof of business. As far as your business falls in the banks’ lending areas, receiving a loan is very easy. 

The bank also offers flexible collateral and repayment arrangements, as well as competitive interest rates. With the wise use of AB microfinance loans, you can easily take your business to the next level.

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