Best Microfinance Banks in Nigeria 2023

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If you are seeking to secure a loan for your business in Nigeria and you are unsure of the best microfinance banks that can provide quick credit loans to finance your business, this post is for you.

Nigeria has the highest number of microfinance banks in the continent, and this number is expected to increase as more people seek ways to improve their lives, businesses, and finances.

These microfinance banks are spread across the country, and it can be daunting if you are unfamiliar with how they operate or their interest rates. Nonetheless, microfinance banks or SME loans serve as the backbone of many businesses, and the process is relatively straightforward compared to obtaining a loan from a commercial bank.

For decades, microfinance banks have been serving Nigerians, especially small and medium-sized businesses. Many of them are regulated to provide loans, and some have even gone digital, allowing you to download their app and submit your application.

In this post, we will discuss the best microfinance banks in Nigeria and help you make a better decision when seeking ways to finance your next project.

I understand that sometimes things may go awry, and we may need to resort to financial institutions or services to help us resolve our financial troubles.

What is a Microfinance bank?

A microfinance bank is a financial institution that provides quick credit facilities to small and medium-sized businesses, typically with minimal collateral requirements. Microfinance banks are more likely to approve loan requests than traditional banks, but the interest rates they charge are usually higher.

In Nigeria, microfinance banks charge annual interest rates ranging from 40% to 65%. This high interest rate is considered too much for the average Nigerian who is just starting a new business. For example, NIRSAL microfinance bank, a CBN-approved bank, offers loans at an interest rate of 9% per month.

It’s important to note that different microfinance banks have their own rules and regulations. Some may charge lower interest rates than others, while some may charge more.

What are the best microfinance banks in Nigeria?

Let’s begin our search for the best loan options so that you can make an informed decision when looking to finance your business.

1: NIRSAL Microfinance bank

The first on the list is NIRSAL Microfinance Bank, which is a CBN-licensed bank. It offers loans with a 9% interest rate, one of the lowest rates in the country. Established in 2013, the bank is a federal government financial institution that caters to the needs of small and medium-sized businesses in Nigeria.

2: Lapo Microfinance bank

When it comes to discussing the best banks that provide quick loans to their customers, Lapo Microfinance Bank can be a lifesaver. It is one of the most popular banks in Nigeria, which helps Nigerians deal with the difficult economic situation associated with securing a loan. Established during the regime of General Ibrahim Babangida in the 80s, Lapo has become the leading microfinance bank in Africa, due to its commitment to ensuring that low-income earners and SMEs have access to loans and finance.

To make an informed decision, it is advisable to visit the official Lapo website to learn more about the bank, its loan offers, and tenures.

3: Kuda Bank

Kuda is a digital bank that has gained immense popularity in Nigeria for its easy banking solutions accessible to anyone with an internet-connected smartphone from anywhere in the country. It was established as Kudimoney in 2016, and by 2020, the bank was already making plans to change its name, resulting in the Kuda bank that it is known as today.

Since its establishment, Kuda has raised over 100 million dollars and has become popular among every Nigerian. The good news is that Kuda is not just a bank with impressive banking capabilities but also a microfinance bank that offers personal and business loans to its customers, and the process is effortless.

All you need to do is visit their website, familiarize yourself with the necessary information, and create a bank account to start enjoying the numerous benefits that come with being a Kuda customer. Visit the website to get started.

4: ACCION Microfinance Bank

ACCION Microfinance was established as a national financial institution to provide loans to low-income earners and empower business owners by offering loans at a low interest rate. The bank is popular on both the East and West sides of Nigeria, and some of its loan offers include small business loans, school loans, home equity loans, and others.

Furthermore, ACCION has a mobile banking USSD system that provides customers with the right opportunity to experience the benefits it has been providing for many years.

5: VFD Microfinance Bank

Next on the list is VFD Microfinance Bank, popularly known as V-bank, which is a banking platform similar to Kuda Bank. V-bank provides loans starting from small business loans, home equity loans, personal loans for regular customers, and others. The bank was established in 2009 and obtained a license to spread its wings across many states in Nigeria by 2011, with its headquarters in Lagos.

To access a microfinance bank loan in Nigeria through the V-bank app, simply sign up. For more information on the firm’s products and services, please visit their website.

6: Assets Microfinance Bank

The list of notable microfinance banks in Nigeria would be incomplete without mentioning Assets Microfinance Bank, which is the pioneer of lending in the country and remains one of the most popular institutions in the sector. Despite the numerous changes that have occurred over the years in the financial services industry, this bank has left an indelible mark in Nigeria by serving businesses and individuals for decades, thanks to its unique products that aim to empower Nigerian entrepreneurs.

Read: Top 10 Best loan Apps in Nigeria with Low-Interest rates 2023

The bank was founded by the Nigeria Central Bank and offers various loan products, including personal loans, business loans, and payday loans. As long as applicants meet the basic requirements, they can obtain any type of loan they need.

Moreover, the company provides deposit, savings, and investment services. Those interested in learning more about their loans, products, and services can visit their website.

7: AB Microfinance Bank

Another great option on our list is AB Microfinance Bank, a Lagos-based firm that provides financial services to small and medium-sized business owners in the heart of Lagos state. The firm claims to be a socially responsible bank of choice for micro and small businesses.

AB Microfinance bank offers microloans, small business loans, housing loans, and other financial products that are not mentioned in this article. To learn more about their loan offers and products and services, visit their website.

8: BoI Microfinance Bank

This bank is a subsidiary of Nigeria’s oldest development bank. BoI Microfinance Bank claims to provide a variety of financial services to small and medium-sized businesses as well as low-income earners. The company aims to promote entrepreneurship and make simple financial obligations accessible to Nigerians. In addition to loans, BoI microfinance bank also offers deposit and savings services.

9: Mutual Trust Microfinance Bank

Mutual Trust is another popular and well-organized microfinance bank in Nigeria that always prioritizes the needs of businesses. Since 2016, the company has been pioneering the evolution of microfinance in Nigeria and continues to thrive due to its unique services to people. Mutual Trust Microfinance takes pride in its ability to provide exceptional financial services using cutting-edge technology and highly skilled personnel.

Customers can complete their loan application in under 10 minutes, thanks to the straightforward procedures. Loan applications are also reviewed and approved in less than ten hours, and that’s not all.

The greatest aspect is that the organization offers a highly flexible repayment plan that enables consumers to easily and stress-free return their debts.

10: Fina Trust Microfinance Bank

Fina regards itself as the pioneer of microfinance in Nigeria and calls itself “the number one choice in Nigeria for loans and finances.” The firm was founded in 2009 and is believed to have affiliations with a company in Sri Lanka. Fina offers a range of financial products and services, including rapid loans, salary advances, SME loans, school loans, financial asset financing, and others. Additionally, it has a variety of savings accounts, current accounts, and fixed deposit accounts. You can visit the website to learn more about its products and services before making a decision.

Can I get a loan from Microfinance banks in Nigeria?

If you are a Nigerian citizen, you can obtain a loan from any of the Microfinance banks listed above. To make an informed decision, visit their websites and learn more about their services. Additionally, you can return to this page at any time as we will discuss each Microfinance bank in detail and provide step-by-step instructions on obtaining a loan. The basic requirements for obtaining a loan are not as challenging as those required by traditional commercial banks. Therefore, the answer is an unequivocal yes, you can receive a loan if you meet their minimum requirements.


Obtaining a loan is a straightforward process, provided that you meet the necessary prerequisites and fulfill the requirements. It is crucial to note that microfinance banks typically require you to hold an account with them to increase your chances of securing a loan, whether it is a personal, business, or payday loan. It is also necessary to be a customer for a limited duration before seeking a loan. Additionally, the following are some of the leading microfinance banks in Nigeria, although the list may be subject to change periodically.

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