Are you looking for the best microfinance bank loan in Nigeria?
Many microfinance banks in Nigeria today are offering quick loans for business expansion, school fees, and emergencies.
These banks have become popular among millions of people.
In this article we will list out the best microfinance bank loan in Nigeria, how they work, and how to apply.
What is a microfinance bank loan?
A microfinance bank loan is a type of loan designed for traders, small business owners, students, and low-income earners, who may not qualify for big commercial bank loans.
Unlike commercial banks, they don’t need big collateral before you can access a loan.
The process is faster, easier, and more flexible.
Features of the Best Microfinance Loan:
- Low interest rate.
- Flexible repayment terms.
- Quick access to funds.
- Small or no collateral.
- Good customer service.
See Also: NYIF Loan: How to Apply in 2025
Best Microfinance Bank Loan in Nigeria
1. Accion Microfinance Bank
Accion is one of the best microfinance banks in Nigeria. It is popular for offering quick digital loans and business support.
With Accion, you can access different loan products for both personal and business use.
Through their AccionMonie app, you can borrow up to ₦500,000 instantly.
The interest ranges from 8% to 14%, and repayment is within 1–4 months.
They also provide school fee loans with just 5% flat interest, disbursed directly to schools.
Available Accion Loan Products and Features
Brighta Loan
- Loan up to ₦500,000.
- No collateral needed.
- Interest is 8%–14%.
- Duration is 1–4 months.
- You can apply through the AccionMonie app.
- Best for emergencies or small business loans.
School Fees Loan
- Loan from ₦50,000 to ₦500,000.
- Fixed 5% interest.
- Duration is 1–4 months.
- Apply with a valid school invoice.
- Perfect for parents who want to secure their children’s education.
My Own Loan
- Loan from ₦50,000 to ₦499,999.
- Interest is 6.5% on reducing balance.
- The tenor is 4–12 months.
- Apply at the branch.
- This is designed for micro businesses that need working capital.
Why choose Accion?
It uses AI technology, which makes loan applications fast and stress-free.
2. AB Microfinance Bank
The AB Microfinance Bank loan is popular for traders and SMEs. You can access microloans from ₦15,000 to ₦5 million.
Interest rates are as low as 5% on reducing balance, which is cheaper than most.
For bigger businesses, AB also offers SME loans up to ₦20 million.
Repayment terms can be as long as 24 months.
Available AB Microfinance Bank Loan Products and Features:
Micro Loans
- From ₦15,000 up to ₦5,000,000.
- Interest is 5%–6.6% reducing balance.
- Up to 18 months repayment.
- Application at branch or app.
- This loan is perfect for small businesses that need flexible support.
SME Loans
- From ₦3,000,001 up to ₦20,000,000.
- Interest is as low as 2.8%.
- The tenor is 6–24 months.
- Requires collateral.
- Great for businesses that want to expand fast.
Why choose AB?
It offers loans for both small traders and established businesses with fair rates.
3. Kuda Microfinance Bank
Kuda is a digital-only bank and one of the best microfinance banks in Nigeria.
With Kuda You can apply for personal loans and overdrafts directly through the Kuda app.
You can access a loan of up to ₦150,000 within minutes.
Interest is daily, ranging from 0.23% to 0.8%, which means short-term but high if delayed.
Kuda Available Loan Products and Features:
Personal Loan
- Up to ₦150,000.
- No paperwork.
- Interest is 7%–24% monthly.
- The tenor is 1–3 months.
- Quick and easy, but the interest is on the high side.
Overdraft
- Spend above your account balance.
- Interest charged daily (0.23%–0.8%).
- Auto repayment when you receive money.
- Very convenient, but you must use it carefully.
Why choose Kuda?
It offers instant quick loans without collateral.
4. LAPO Microfinance Bank
LAPO is one of the popular microfinance banks in Nigeria known for supporting low-income families and small businesses.
This microfinance bank offers school fee loans to help parents keep their children in school.
You can get up to ₦100,000 for fees at about 3%–5% interest monthly.
They also give loans to school owners to expand their facilities, up to ₦3 million.
Lapo Available Loan Product and features
EduFinance – School Fees Loan
- Purpose: Pay children’s tuition fees.
- Amount: Up to ₦100,000.
- Interest: 3%–5% monthly.
- Tenor: One term/session.
- Application: LAPO branches.
- Pros: Quick approval, easy access for low-income parents.
- Cons: High monthly rate, small loan size.
EduFinance – School Improvement Loan
- Purpose: Upgrade or expand private schools.
- Amount: Up to ₦3,000,000.
- Interest: 3%–5% monthly.
- Tenor: 6–12 months.
- Pros: Helps school owners grow, accessible.
- Cons: High monthly rate.
- Reputation: LAPO is Nigeria’s largest MFB with strong community impact.
Why choose LAPO?
Offer quick loans for education and make loans easy for parents and business owners.
5. NIRSAL Microfinance Bank
NIRSAL is one of the best microfinance banks that offer government-backed loans like AGSMEIS for agriculture and SMEs.
With NIRSAL you can access loans up to ₦3 million with 5% yearly interest.
They also have group loans for women entrepreneurs, known as the Amazon Loan.
Available Loan Products and Features:
Amazon Loan
- Up to ₦1,000,000.
- For women entrepreneurs.
- Group loan only.
- Tenor up to 1 year.
- Empowers women in business through group support.
AGSMEIS Loan
- Up to ₦3,000,000.
- Only 5% annual interest.
- Up to 3 years repayment.
- Requires CBN training.
- One of the cheapest loans you can get in Nigeria today.
Why choose NIRSAL?
It offers the cheapest, long-term, and government-supported loan.
6. BOI Microfinance Bank
BOI Microfinance Bank is part of the Bank of Industry that gives working capital loans for small businesses.
They also give consumer loans for salary earners.
Their interest rate is around 4% monthly, with repayment up to 12 months.
Available BOI Microfinance Bank Loan Products and Features:
Working Capital Loan
- Flexible loan sizes.
- Interest: 4% monthly.
- Tenor up to 12 months.
- Supports small businesses with quick cash.
Consumer Loan
- For salary earners.
- Up to 50% of monthly salary.
- Interest: 4% monthly.
- Tenor up to 12 months.
- Good option if your salary is domiciled with them.
Why choose BOI?
Because they are reliable and backed by one of Nigeria’s strongest development banks.
Tips to Get Loan Approval Fast
- Keep your BVN and ID ready.
- Maintain a good credit history.
- Provide honest details about your income or business.
- Choose a loan that matches your repayment ability.
- Always read the loan terms carefully before signing.
Pros and Cons of Microfinance Loans
Pros:
- Fast approval.
- Small or no collateral.
- Support for small businesses and education.
Cons:
- Interest rates can be high.
- Loan amounts may be small compared to commercial banks.
FAQs on Best Microfinance Bank Loan in Nigeria
1. Which microfinance bank is the best in Nigeria?
There is no single “best” because it depends on your needs.
LAPO is best for education loans.
Accion is best for quick digital loans.
AB Microfinance is best for traders and SMEs.
NIRSAL is best for low-interest government loans.
Kuda is best for instant digital personal loans.
2. What is the lowest interest rate for microfinance loans in Nigeria?
NIRSAL Microfinance Bank offers one of the lowest, with just 5% per year for AGSMEIS loans.
AB Microfinance Bank also gives loans at 2.8%–5% reducing balance for SMEs.
Most others charge 3%–5% monthly, which adds up to 36%–60% yearly.
3. Can I get a microfinance loan without collateral?
Yes.
Many microfinance banks give loans without physical collateral.
Instead, they use group guarantees, BVN, or business checks.
Digital banks like Kuda and AccionMonie do not ask for collateral.
4. How much can I borrow from a microfinance bank?
It depends on the bank.
LAPO may give ₦100,000–₦3 million.
Accion offers up to ₦500,000 online and more for SMEs.
AB Microfinance gives ₦15,000 to ₦20 million depending on business size.
NIRSAL and BOI also provide millions for SMEs and agriculture.
5. How long does it take to get a microfinance loan?
Digital banks like Kuda and Accion disburse in minutes.
Traditional MFBs like LAPO or AB take 2–3 working days after verification.
Government-backed loans like NIRSAL AGSMEIS may take weeks due to training and approval.
Conclusion
Microfinance bank loans are changing lives in Nigeria.
Its loans are simple, fast, and accessible for people who may not qualify for big bank loans.
Whether you are a trader, student, or business owner, there is a loan for you.
The key is to compare interest rates and repayment terms and choose the one that fits your needs best.
