In Nigeria, one of the most common reasons small and medium-sized businesses fail is due to inadequate capital—whether to launch, sustain operations, or scale.
While MSMEs (Micro, Small and Medium Enterprises) are the backbone of many developing economies, they often face major barriers when seeking loans from large commercial banks.
Fortunately, Microfinance Banks (MFBs) fill this gap by offering easier access to credit facilities and financial services.
These institutions are tailored to support small-scale entrepreneurs and self-employed individuals who might not otherwise qualify for conventional bank loans.
Below are three reputable microfinance banks in Nigeria where you can access loans of up to ₦5 million to fund your business or meet personal financial needs.
1. Renmoney Microfinance Bank
Renmoney is a Lagos-based fintech lending company with a microfinance banking license. It is known for leveraging technology to expand financial inclusion by offering quick and hassle-free loans to both individuals and business owners.
Key Features:
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Loan amounts range from ₦6,000 to ₦6,000,000
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Repayment periods: 3 to 24 months
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Monthly interest rates between 2.4% – 9.33%
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APR capped at 35.76%
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No collateral, guarantors, or paperwork
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Funds disbursed within minutes
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No hidden fees – all terms are disclosed upfront
This makes Renmoney a great option for tech-savvy entrepreneurs and employees looking for flexibility and speed in loan processing.
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2. AB Microfinance Bank
AB Microfinance Bank provides tailored financial services to small and medium-sized business owners. Notably, clients do not need to have an existing savings account with the bank to apply for a loan—just a viable and verifiable business.
Key Features:
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Loan amounts between ₦3,000,000 and ₦20,000,000
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Interest rate starts from 3% monthly (reducing balance)
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Disbursement fee: 1% of the loan amount
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Repayment term: 6 to 24 months
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Wide range of collateral options accepted
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Disbursement within 3 working days once documentation is complete
AB Microfinance Bank is ideal for more established small businesses seeking larger capital injections.
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3. LAPO Microfinance Bank
Licensed by the CBN in 2010, LAPO Microfinance Bank is one of Nigeria’s most trusted institutions for small business loans. With a strong track record of empowering over 1 million entrepreneurs, LAPO offers SME loans tailored to support various sectors of the Nigerian economy.
Key Features:
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Loan facility up to ₦5,000,000
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No collateral required
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Loan term: 12 months
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Flexible repayment structure
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Free training on financial literacy, business planning, and customer service
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Access to financial advisory support
Whether you’re in retail, manufacturing, services, or agriculture, LAPO Microfinance Bank provides support to help scale your business.
Access to funding shouldn’t be a barrier to your business dreams. With institutions like Renmoney, AB Microfinance Bank, and LAPO Microfinance Bank, entrepreneurs now have more viable and accessible paths to secure the capital they need.
