MICROFINANCE LOAN: TOP COVID-19PICKS & HOW TO APPLY (+QUICK GUIDE)


Financials have always been familiar with the term “Microfinance loans”. In this post, I will create a familiar space for everything about microfinance loans. As well as the Nirsal microfinance loan, first bank microfinance loans. And also Lapo microfinance loan, microfinance loan online, microfinance loan for covid-19, microfinance loan application form.

MICROFINANCE LOANS


Microfinance loans are a type of loan. Given to low-income earners and the unemployed groups sure of no other access to financial services. They are also microcredit. The aim of microfinance is to help the improvised group become self-sufficient. It achieves this purpose by taking on small business loans safely with an ethical lending process and a consistent manner.

Microfinance loans can range from as small as $100 to as big as $25,000. Most of these microfinance loans take their activities to countries that are developing such as Indonesia, Serbia, Uganda, and Honduras. Micro financers also charge for interest and as well as institute repayment plans for lenders.

Because of most of these people given microfinance loans. Do not have the financial resources to do business with traditional financial institutions. They try to save, borrow, acquire credit insurance, and make deposits on their debt. Trying to swing between all financial burdens with earnings like $2 a day. It will be almost impossible for them so most times they depend on family, friends. Or even loan sharks whose interest rates are always too much.


Activities of the microfinance banks range from educating programs that teach business. Principal, capital for start-ups for the small businesses, and to helping entrepreneurs succeed. Applying for a microfinance loan you will be expected to go through these programs. So that you get a good sight on the concept of cash flow, interest rates. And manage budgets and debts as well as how savings and financing accounts work.

Read also: Development banks best picks for beginners’

Once this program is passed through by the borrower then the loan process can begin fully. We should note that lending women-owned business these loans often lead to progress and prosperity. Your repayment history as a borrower tells your eligibility status for a larger loan in the future. Although microfinance banks have the highest repayment plans like in 2019 its reported repayments were approximately 99 percent.


Microfinance also engages in additional operations such as education, projects for a better environment as well as job training. The world bank estimates that more than 500 million. People have benefitted directly or indirectly through microfinance loans. And as such an estimated number of people of 130 million. Have benefitted directly from the microfinance loans(2014)reported by the international finance corporations.

NIRSAL MICROFINANCE LOAN

Nirsal microfinance loan established in 2019. Is one of the leading financial operations in Nigeria. Serving as one of the major microfinance institutions in Nigeria. The Nirsal microfinance loan is also a subsidiary of Nigeria incentive-based risk sharing for Agricultural lending (NIRSAL PLC). A non-banking finance institute created in 2013 to facilitate the free flow of affordable finance and investment to the agricultural sector.

SERVICES OF THE NIRSAL MICROFINANCE

Nirsal microfinance loan aims at providing genuine and reliable services to individuals in need of need widely. These services are both financial and non-financial. They include:

ACCESS TARGET ACCOUNT

It is a saving scheme. Aimed at individuals, small, medium, and large business enterprises seeking to achieve a saving culture.


Nirsal microfinance loan aids its customers to save. For the purpose of paying house rents purchase of equipment and festivities purchase of goods. Running this savings account, only a limited number of withdrawals are allowed by the account holder based on pre-agreed instructions.

The Nirsal microfinance loan account has opening access of N1.000 to a minimum balance of N500. Through the aid of the access target account business owners and individuals. Are able to save up a reasonable amount of money to invest or use.

AGRIC SMALL MEDIUM ENTERPRISE SCHEME

Businesses like industrial and manufacturing (automobile, agriculture, allied processing). And information and communication (media, telecommunication, and publishing), hospitality (event services and catering).

Even creative and art industries (entertainment, fashion, beauty, arts, apparel & textile) that are small and medium-sized. However given loans of up10 million to manage, strictly for the above-mentioned businesses. These loans do not require collateral and the interest rate of one digit is 9%per annum.

ANCHOR BORROWER’S PROGRAM

This particular service of the Nirsal setup for the purpose of creating and establishing a link. Between companies in the agricultural processing sector and small-scale farmers who deal in essential agricultural commodities. The aim of this is to fill in the financial gap. As well as organize a profitable food chain for the farmers.

The Nirsal microfinance loan is a major loan for small businesses seeking to find root. Its offices are located at every state in Nigeria including the FCT where it headquarters is also located.

FIRST BANK MICROFINANCE LOANS

This loan is provided by the first bank for salary earners. Getting a first bank microfinance loan also stipulates that you must have an account with the first bank. Their loan services include personal home loan, student loan, car loan, first bank advance.

PERSONAL HOME LOAN

This loan is available to salary earners and self-employed customers of first bank alike. This loan is for people attempting to build or complete their house.

Eligibility for this loan is for individuals with verified and steady income. And property for the purpose of this loan must be personal, not commercial. However, the maximum tenor for this loan is 20years while the subject retirement age is 60years.

You should also know that this loan has competitive interest rates. As well as in a simple document and a maximum down payment of below 30% subject to a location with no equity contribution.

REQUIREMENTS

Valid title document, statement of account, last three months payslip, application letter, personal home loan application form. And also applicant’s letter of total emolument, confirmation of applicant’s employer by the FBN on their approved list. Also, a letter for irrevocable, domiciliation of salary for the duration of the facility.

By downloading the personal home loan or filling the forms as well as submit to the nearest first bank branch, you are a step close to access your loan.

STUDENTS LOAN

This loan is firstEdu for students. Mostly for private school proprietors/proprietress to help improve their learning standards and aid students get a better education.

Getting this loan has a few requirements which include. The population of 100 students at least private schools registered by the CAC. As well as authorized by the state government, flexible repayment plans over 90 days, access to a maximum amount of 10million. And lastly, the school must have a banking relationship. With the first bank for the duration of 6months or any other bank for the duration of 12months.

Application for loan very as all you need to do is to visit any first bank branch near you.  And specify to the customer care that you need a student loan. The customer care is going to guide you all the way through from there.

CAR LOAN

A business owner will be facing the troubles of running errands with public transport. Which will be a lot of stress as well as expensive and waste time as well. The first bank is willing to get you the dream car you want.

You just need to follow some easy producers like providing and filling out forms such as. Statement of account, auto loan application form, current 3months payslip. And also letter of total emolument, proforma invoice from approved first bank vendors.

Features

Maximum amount of 15million, 22% interest rate, salary domiciliation, 20% equity contribution, vehicles to be financed.

Must get approval from the first bank approved vendors, maximum tenor is 4years. Your loan is ready once all the above instruction is ready. And forms of application to at any first bank branch near you.

FIRST BANK ADVANCE

This loan is for salary earners that receive constant salaries every month. The highest amount possible for this loan is 5million. Get this loan using any of the first bank online services like first mobile & USSD or first online and your ATM card too.

It is important to note all your bank obligations will get debuts while the remaining amount is for you.

Some of the features of this loan include. Management fee of 1.0% flat, credit life insurance 0.50%, salary account must be with the first bank. And also loan amount must be up to 50% of monthly income, the loan can be accessed three times a day subject to the maximum eligible amount.

Note the risk acceptance for the first advance is automatic. Repayment is off immediately salary is available and a lien placed on an unfunded account. So all fees including the interest rate are collected upfront upon disbursement of the loan.

LAPO MICROFINANCE LOAN

Lapo microfinance loan’s goal is to reduce poverty by starting up pro-poverty programs to aid and empower low-income individuals socially and economically through various financial services startup.

The Lapo microfinance loan is able to provide up to N500, 000 for small business. And as much as 5,000,000 for medium and large enterprises.

The Lapo microfinance loan is limited to the group of individuals who had been termed unbankable by larger financial institutions. Lapo microfinance loan has its headquarters at Benin, Edo state while there is also a branch located at Lagos state.

This Lapo microfinance loan aim at bringing funds close to individuals. Who earn a little amount of money daily with no credit history and as well living in hard to access areas.

Also don’t even reach the traditional requirements of the various banking sectors. Some of the key points you should be aware of before taking steps to acquire a Lapo microfinance loan include.

 Ensure you are not getting the Lapo microfinance loan for the purpose of paying off another loan. A guarantor is necessary. Because assessments are going on site.

Read also: Finance companies best picks for any business

Lapo only covers individuals within Lagos and Edo state. It’s a paperwork affair, insurance is provided to borrowers. Throughout their loan tenor, Lapo repayment structure is very flexible so you don’t need to worry much.

ELIGIBILITY FOR THIS LOAN INCLUDE THE FOLLOWING

In order to qualify for a Lapo microfinance loan, you need to meet up the requirements of the Lapo microfinance loan provided below.

4 recent passport photographs

Current utility bill

Loan application letter

2 guarantors

Duly completed application form

Valid ID recognition of any form (driver’s license, voter’s card, international passport, or national ID)

MICROFINANCE LOAN ONLINE

With the aim of alleviating poverty, there are quite a number of microfinance loans available online, and as well as ready to get that business started. Each of this microfinance loan online serves and work with their own and have their own criteria.

All you need to do is look for the perfect eligibility that suits your need or situation at that particular time. You need to remember the purpose of microfinance both online or physical loans isn’t to pay off other loans, invest your loan for the purpose of profit. This feature is one of all the microfinance banks have in common. Some of the online microfinance loans that are at your services include:

CREDIT NIGERIA

Credit Nigeria is a fast-growing computer age microfinance online loan that is available online at any time of need. The website offers you a wide range of loans as a variety of options to choose from. The online loan as well does not expose your information except the lender processing your application. Acquiring a loan has never been easy with credit in Nigeria.

CEMERGING LOANS

Cemerging loans is an Australian microfinance online loan plug. That gets you a loan within few clicks. This loan is fast, reliable, and as well as low-interest rates for small business owners and enterprises. A simple click on the link will guide you through getting your loan.

BEST ONLINE LOANS

Best microfinance online loans is a trusted loan for AMERICANS who are seeking to level up in one way or the other. The amazing features of this loan are that there is no upfront or hidden fees, no credit impact eligibility check, it doesn’t require previous credit history, up to $100 to $5,000 from 61 to 72months.

YES MICROFINANCE BANK

Yes, the microfinance loan online is that its application is totally free. Once you begin by chatting them up, logging into their website, or sending an email to the yes microfinance bank, you are as close as getting your loan.

You can dial *258*1# to open an account with the yes microfinance online bank. All these easy steps are provided for people who can’t possibly get to banks physically or people who think loans require a lot of people work.

MICROFINANCE LOAN FOR COVID-19

The covid-19 periods have undoubtedly shake most microfinance loan banks hard. Thus reducing their activities especially in developing countries that are no longer available because of the pandemic. The individuals, however, benefiting from the microfinance has little or no options to turn to. We know most people using the microfinance sector of loan are people with little or no knowledge of banking sectors or rather would not fit into their requirements.

 So in this case where the microfinance banks have also seem impossible to access they are almost left with nothing especially with the fact they earn very little daily. During this period most countries have start-up microfinance loans specifically for the covid-19 period, with the aim of aiding individuals who had been unfortunate as a result of the virus.

These microfinance loans for covid are the same as the microfinance general feature of only aiding only individuals with little income daily. Adding a few features to this microfinance loan for covid-19 that includes

FEATURES

Getting a microfinance loan for covid, be sure your reasons are relative to the pandemic as well as ensure all features are present in the decision of getting a microfinance loan for covid. However, some of these features will differ depending on the microfinance bank sponsoring the microfinance loan for covid.

The only common feature with all the microfinance loans for covid is that your business or salary is affected because of the virus. Features include

Only if your business was impacted by the virus with a 15% or more turnover from profit interest

 Unable to get finance from other financial sectors like banks and commercial lending providers

 Loans used for capital or changes brought about by the covid-19

 Interest free to certain terms and conditions

Zero repayments for the first 6months equivalent of 12months

Loans typically for 3 years

Fixed repayment with no punishment for early repayment

Capital expenditure can be funded for 5years.

NB: Some of these features may differ slightly or completely from one country to another.

Some of this microfinance bank startup for the covid-19 results all around the world includes

MICROFINANCE FINANCE (MFI)

This microfinance bank set up to fill the financial gap the covid-19 viruses have created for small businesses and enterprises. In case your business has been affected by the pandemic as a citizen of Ireland get help from the MFI today by registering on their website.

CBN INTERVENTION FUND

The NIRSAL microfinance bank had made provision through the CBN to provide funds to small businesses, and enterprises affected by the covid-19 crises. However, getting this loan is only for families and businesses which clearly were affected by the pandemic. The eligibility financial institution for this loan is the NIRSAL microfinance bank. Thus getting this loan for you will only be possible if you register under or apply for the loan through the NIRSAL microfinance bank.

Lastly, it’s simple as if your business is affected directly by the covid-19 pandemic thereby influencing your standard of living or that of your family as well. Are you a small or medium enterprise and your income affected by the pandemic? Just log in to the NIRSAL microfinance website or visit their bank to get the CBN intervention fund.

GCA FOUNDATION

A nongovernmental organization that had been in the quest of aiding entrepreneurs all over the world grows their business as well as train them on the basics of business so as to maintain theirs. This foundation during this period has been making analyses of its members all around the world affected by this virus and has been rendering help to them in terms of a loan to help revive their businesses.

MICROFINANCE APPLICATION FORM

Microfinance application forms are slips given to the borrower to fill in his/her details as well as sign off on the terms and conditions provided by the lender. These microfinance application forms can be obtained at the branches of microfinance banks where you need the loan from, also these microfinance application forms are always available on the lender’s website.

Make a choice of the microfinance institute from which you desire to get a loan from visiting any of their physical branches if any to obtain your application form. But in case your loan choice is online, the website guides you through how to open your form as well as guides to filling them out.

Demands of microfinance application form will differ depending on the lender. Microfinance requirements might be different or slightly different from other lenders’ requirements.

The online microfinance loans mentioned above all have their microfinance application form available for access 24hrs on their website as well as their application form available on the microfinance branch.

CONCLUSION

Microfinance loan banks are a major trend in the world today as well as the most helpful financing sector in the world. Young people who are confused about how to start up or get training on how to run their business should always resort to microfinance banks for aid. The achievements of these banks can never be overemphasized.  

0 Shares:
Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like