How To Get Loan From Microfinance Bank In Nigeria (Lapo & Other Banks)

Eligibility, Requirements, and How to Apply for a Loan from Microfinance Banks in Nigeria

Microfinance banks in Nigeria provide financial assistance to individuals and small businesses who may not have access to traditional banking services. If you are interested in applying for a loan from a microfinance bank, here are the eligibility criteria, requirements, and steps to follow:


  1. Age: You must be at least 18 years old.
  2. Residence: You should be a Nigerian citizen or legal resident.
  3. Business Type: Microfinance banks offer loans to various sectors, including agriculture, trade, manufacturing, and services. Ensure that your business falls within their approved sectors.
  4. Own MFB Account: If you have done all the necessary documentation and followed all the steps, you will not get the loan unless you have an account with the microfinance bank you visited.

    Open an account with the microfinance bank and get your data captured. This also helps to show your commitment to the bank.

  5. Credit History: Some microfinance banks may require a good credit history or collateral, while others may offer loans to individuals with limited credit history.


  1. Identification: Provide a valid means of identification such as a national ID card, international passport, voter’s card, or driver’s license.
  2. Proof of Address: Present a recent utility bill, bank statement, or any official document indicating your residential address.
  3. Business Documentation: Prepare necessary documents such as your business registration certificate, tax identification number (TIN), and any permits or licenses required for your business.
  4. Financial Statements: Prepare your financial statements, including bank statements, cash flow statements, profit and loss statements, and balance sheets.
  5. Loan Proposal: Develop a comprehensive loan proposal that outlines the purpose of the loan, the amount required, repayment plan, and how it will benefit your business.


For individuals or petty traders seeking microfinance loans, having collateral when applying is optional.

But for large business loans, agriculture loans and asset procurement loans, the MFB demands a collateral whose value must be equal to or greater than the loan amount.


For small business owners, petty traders and individuals, you will be asked to get guarantors instead of collateral.

The minimum number of guarantors required by Microfinance Banks is two.

Guarantors must be financially stable and at least 25 years old. It is the duty of the Guarantors to ensure that the loan is paid back when due.

If you default in repayment, the person(s) you put as guarantor(s) will be required to repay the loan amount.

The prospective customer and guarantor(s) will have to be present on the day the loan is approved because they will both sign the agreement.

Documents Guarantor Must Have

  1. 2 recent passport Photographs
  2. Copy of recent utility bill
  3. Valid means of identification (National I.D card, International Passport, Driver’s License

How to Apply:

  1. Research Microfinance Banks: Identify microfinance banks in your locality that offer loans suitable for your business needs. Consider their interest rates, loan terms, and reputation.
  2. Visit the Bank: Visit the chosen microfinance bank’s branch office to inquire about their loan products, application process, and requirements. Alternatively, check their website for online application options.
  3. Complete Application Form: Obtain and fill out the loan application form accurately. Attach all required documents and provide necessary details about yourself and your business.
  4. Submit Application: Submit your completed application form along with the supporting documents to the microfinance bank. Ensure that you retain copies of all submitted documents for your records.
  5. Loan Evaluation: The microfinance bank will review your application, conduct credit assessments, and evaluate the feasibility of your loan request based on their internal criteria.
  6. Loan Approval and Disbursement: If your application is approved, you will be notified of the loan terms and conditions. Upon acceptance, the loan amount will be disbursed to your designated bank account.

Remember to repay the loan according to the agreed-upon terms to maintain a positive credit history and strengthen your relationship with the microfinance bank.

Please note that the specific requirements and processes may vary among different microfinance banks. It is advisable to contact the chosen microfinance bank directly or visit their website for accurate and up-to-date information on their loan application process.

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