AB Microfinance Bank – How To Get Loans From The Bank

May 15, 2024 Banking, Loans

AB Microfinance Bank – How To Get Loans From The Bank

AB Microfinance Bank – How To Get Loans From The Bank.

In Nigeria, microfinance institutions are expanding quickly and have given loans in particular to small and medium-sized businesses (SMEs). Since its founding in 2002, AB Microfinance has had a long legacy of success. It is one of those banks.

It has numerous locations throughout the nation, including those in Lagos, Oyo, Ogun, and Ondo State.

Similar to Nirsal Microfinance Bank, AB offers stress-free loans at competitive interest rates to people and SMEs in need. They are dedicated to enhancing financial reach throughout the nation and hold a license from the Central Bank of Nigeria.

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 during 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, e-banking, and credit are the two main services provided by AB Microfinance institutions. Let’s examine each in greater detail:

Savings and account

1. AB Current Account: 

You have limitless access to your money with this account, every day and all the time. There are no limitations and it is accessible to both private individuals and business entities. Some of its advantages include:

  • No maintenance fee
  • SMS alert services, and
  • Encashment of cheques.

2. AB Savings Account: 

Your money is kept safe with the assistance of an AB savings account, which also offers a competitive interest rate. Both private individuals and business entities can access your money at any moment without losing any interest on withdrawals.

Some of its advantages include:

favorable interest rates

simple procedure for creating an account

Free account statement.

3. AB Term Deposit Account:

You can set your money in a deposit account for a specific period of time while earning exceptional interest rates. Some of its advantages include:

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

Credit

1. Micro Loans: 

Through this AB Microfinance service, you can quickly obtain a loan as an entrepreneur in Nigeria. A loan’s maximum maturity is 18 months, and its value can vary from $15,000 to $3 million.

Some features of this loan are:

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

2. SME Loans: 

This service was created with SME proprietors in mind. It gives you access to fast and transparent loans so you can expand your company. Access to up to N20,000,000 is possible with a maximum 24-month tenor and the requirement of security.

3. Housing Loans:

As the name implies, housing loans offer you access to financing for housing initiatives. The amount is within reach, ranging from 300,000 to 3,000,000 Naira. Through this program, you can also get complimentary design assistance and premium building supplies.

E-banking

It is much simpler to utilize AB Microfinance’s services because they offer additional services similar to those of commercial banks. These are the services:

  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

Currently, AB Microfinance provides loans of up to N5,000,000, with an additional N20,000,000 available to SME business owners. Apply in the manner described below if you satisfy all the prerequisites for the loan as described earlier:

1) Make a loan proposal at any of their locations. Make sure you bring all the paperwork required, as mentioned previously, and enough collateral to cover the loan.

2) Qualified personnel would immediately evaluate your proposal on-site. They then send it on for ultimate approval to a decision-making committee.

The amount in issue determines how long it will take for the loan to be disbursed. For instance, it takes a week to qualify for a high-value SME loan. It’s also important to note that:

  • All loans are subject to a disbursement fee of 1% of the disbursed sum.
  • Every loan application must be submitted at one of AB Microfinance’s official locations. To find the office nearest to you and their phone number, go to their main website at https://www.ab-mfbnigeria.com/contact.php.

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

With AB Microfinance, you can receive as little as N15,000 and as much as N20,000,000. Your ability to make payments determines the quantity you have access to. Business inventories, assets, and other factors are taken into account during this procedure.

Conclusion

One of the simplest methods to obtain loans is through AB Microfinance, which only requires a legitimate ID and proof of business. Receiving credit is very simple as long as your company is within the lending parameters of the banks.

Along with flexible collateral and repayment terms, the bank also provides affordable interest rates. You can simply advance your business by making wise use of AB microfinance loans.

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