Micro Finance Loans-how To Apply

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

@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.