How To Apply For Micro-Finance Loan

Micro-finance bank seems to be an easier alternative to raise funds to start a new business or to grow an existing one because of its low interest rate.

Step-By-Step On How To Apply For Loan In A Micro-Finance Bank

1. Open a Saving Or Current Account for N500 only
2. Run the account for at least three months
3. Write and send a letter to apply for a loan to the bank or go the bank and apply in person
4. Obtain two guarantors form
5. Take them to two persons who you are sure can stand for you as referees to fill
6. After filling the forms, submit it to the bank with a cheque of an amount greater than what you are borrowing (this cheque is your collateral. The bank will not withdraw the money immediately, but would do if you default in paying back the loan)
7. Collect the loan you applied for
8. Start your business

You sounds like a marketer that works with/for a micro-finance bank, that is a great things, however, you forgot to mention, the rate.
Cos i am sure the rate is out of the planet, and almost no fresh biz can survive on such rate.
Imagine someone that took out a 1 million Naira to start a biz, Mr. A has used most of the money to buy equipments and pay for some services that is needed for the biz to start up and be alright.
Now for a fresh biz, it will take some time for the biz to grow and be making money, could take time, so while the biz is growing and not really making money, then, how would he service the loan?
I just wanna learn

@thithi

The maximum loan a micro-finance bank can give to an individual to start a business or grow an existing one will not exceed N500,000 that is why it is called MICRO-finance bank.

On the question of how much is the interest in percentage, its varies but the maximum I have heard so far is 16% and its for a period of 12months and maximum of 18 months.

Any individual with a good business idea/plan can apply for loan and pay back in due time without having problems with the bank.

I think thithi is very must right.

@op, please explain what you mean by getting a check of greater value than what you are borrowing as collateral, and why would anyone need a loan if he already has such monentary collateral?

@Key A, I wonder o. Suppose I want to borrow 500k, and issue say a cheque of 550k, while do I need to borow at all?

the cheque you issue is like a collateral and the amount you will be requested to write on is the principal+ interest. the cheque will be returned to you immediately after you finish your repayment. it is only necessary for them to have it in case of defaulting.

Why do i even need to borrow, Abeg join me jare

Sound so easy.
They will not tell you about the interest rate now.
Most of the bank loans are not good for business starters. At the end of the day, you will discover that after paying their loan, you have nothing left.
If you want to succeed in your business. Start with what you have, build it over time, build your cash-flow. Later on, you can get a loan. Not necessarily bank loans. Maybe from relatives, friends, and others. Bank loan should be your last option. They lend with one hand and take back with 2hands.

plss list banks were one can go tru this process, u talk as if its so easy like this, then help us if truly it s

boomlogics: How To Apply For Micro-Finance Loan

Micro-finance bank seems to be an easier alternative to raise funds to start a new business or to grow an existing one because of its low interest rate.

Step-By-Step On How To Apply For Loan In A Micro-Finance Bank

1. Open a Saving Or Current Account for N500 only
2. Run the account for at least three months
3. Write and send a letter to apply for a loan to the bank or go the bank and apply in person
4. Obtain two guarantors form
5. Take them to two persons who you are sure can stand for you as referees to fill
6. After filling the forms, submit it to the bank with a cheque of an amount greater than what you are borrowing (this cheque is your collateral. The bank will not withdraw the money immediately, but would do if you default in paying back the loan)
7. Collect the loan you applied for
8. Start your business

my question is on number 6: we're du I get the cheque from; considering the fact that I came for the loan coz I had no source of income!...if I had sum1 wif such an amount, I could easily juz approach the prson for the capital...I need a Loan and I dnt have anything other than a VIABLE BIZ PLAN!...can I get it?...