How To Get Loan From Microfinance Bank In Nigeria (Lapo & Other Banks)

Eligibility, Requirements and How to Apply for a Loan from Microfinance Banks in Nigeria

The Microfinance Bank of Nigeria provides financial assistance to individuals and small businesses who may not have access to traditional banking services. If you are interested in applying for a loan from a microfinance bank, please follow the eligibility criteria, requirements and steps below:


  1. age: You must be at least 18 years old.
  2. Residential: You should be a Nigerian citizen or legal resident.
  3. business type: Microfinance banks provide loans to various sectors, including agriculture, trade, manufacturing and services. Make sure your business is in their approved industry.
  4. Own MFB account: If you have completed all the necessary documents and followed all the steps, you will not be able to get a loan unless you have an account with the microfinance bank you visit.

    Open an account with a microfinance bank and get your data. This also helps show your commitment to the bank.

  5. credit history: Some microfinance banks may require a good credit history or collateral, while others may offer loans to individuals with limited credit histories.


  1. Identification: Provide valid identification such as national ID card, international passport, voter card or driver’s license.
  2. proof of address: Show a recent utility bill, bank statement, or any official document showing where you live.
  3. Business documents: Prepare the necessary documents, such as your business registration certificate, tax identification number (TIN), and any permits or licenses required for your business.
  4. Financial Statements: Prepare your financial statements, including bank statements, cash flow statements, income statements and balance sheets.
  5. Loan Advice: Develop a comprehensive loan proposal outlining what the loan will be used for, the amount required, the repayment schedule and how it will benefit your business.


For individuals or small traders seeking microfinance, it is optional to provide collateral when applying.

But for large business loans, agricultural loans and asset purchase loans, MFB requires that the value of the collateral must be equal to or greater than the loan amount.


For small business owners, small merchants, and individuals, you will be required to obtain a surety rather than collateral.

The minimum number of guarantors required by microfinance banks is two.

The guarantor must be financially stable and at least 25 years of age. It is the guarantor’s responsibility to ensure that the loan is repaid when it is due.

If you default on your repayments, the person you acted as surety for will be required to repay the loan amount.

Prospective clients and guarantors must be present on the day the loan is approved as they will both be signing the agreement.

Required Documents for Guarantor

  1. 2 recent passport photos
  2. Copy of most recent utility bill
  3. Valid identification (national ID card, international passport, driver’s license

how to apply:

  1. Research microfinance banks: Identify microfinance banks in your area that offer loans that fit your business needs. Consider their interest rates, loan terms and reputation.
  2. Visit the bank: Visit a branch of your chosen microfinance bank to learn about their loan products, application process, and requirements. Alternatively, check out their website for online application options.
  3. Complete application form: Obtain and accurately fill out the loan application form. Attach all required documents and provide the necessary details about you and your business.
  4. Submit the application form: Submit the completed application form to the microfinance bank along with supporting documents. Make sure you keep copies of all submitted documents for your records.
  5. Loan Assessment: The microfinance bank will review your application, conduct a credit assessment, and assess the viability of your loan application against its internal criteria.
  6. Loan Approval and Disbursement: If your application is approved, you will be notified of the terms and conditions of the loan. Upon acceptance, the loan amount will be released to your nominated bank account.

Remember to repay the loan on agreed terms to maintain a good credit history and strengthen your relationship with your microfinance bank.

Note that specific requirements and processes may vary for different microfinance banks. It is advisable to contact the chosen microfinance bank directly or visit its website for accurate and up-to-date information on its loan application process.

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