Microfinance refers to the financial services provided to low-income individuals or groups who are typically excluded from traditional banking. Most microfinance institutions focus on offering credit in the form of small working capital loans, sometimes called microloans or microcredit.
Microfinance is about providing financial services to the poor who are traditionally not served by the conventional financial institutions. In Nigeria, a large percentage of the population is still excluded from financial services.
- Village Savings and Credit Associations (VISACAs),
- Finance Companies (FCs),and.
- Fiduciary Financial Institutions (FFIs).
Things Needed to Apply for Microfinance Loan
Proof of Business: You need to proof that you own a busness, wether small or big to be able to recieve a microfinace loan as this loan isn’t available to salary workers.
Proof of Citizenry: One must proof that he is a resident of the country to be eligible for the microfinance loan as it is only disbursed to documented citizens.
Proof of Residency: You mmust submit a valid proof of residency, either by utility bill or bank statement to be eligible for this loan.
How To Apply for Microfinance Loan
Visit any Microfinance of your choice nearby, upon ascertaining that they offer favourable interest rates, and apply.