5 Secrets acquiring a loan from Micro Finance Bank (part 2)

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I hope you enjoy the part 1 of this article . I will like you to digest this part 2 very well.

Secret No. 4: Flexible Loan Return Duration
Apart from the easy collateral and low interests, MFB loans can also be acquired and paid back in relatively comfortable amount of time. In fact, it is possible to get a loan and spread the pay back period from between one month to a year or more, depending on how much is borrowed as well as the agreement reached with the bank.
Some MFBs even allow loan to be paid back in installments, while the interest is divided and spread equally on each installment. E.g. if one borrows 90,000 naira, it is allowed back in three phases of 30,000 naira each, while the interest of six or seven percent is spread on top. So, one ends up paying about 32,000 or 32, 333.

Secret No. 5: Easier MFB Loan Eligibility Via Active Accounts
There are several benefits to be derived from being an MFB account owner as earlier mentioned in Secret No. 1. But beside this making one eligible for a loan, how active one’s bank account is helps to speed up chances of acquiring the loan.

This means that the bank tends to give great priority to those who show signs of being able to pay back promptly. For example, if after opening an account, one uses it regularly, saving and withdrawing from it, the bank tends to believe that whatever business one is doing is going on fine and would easily provide returns for whatever extra funds are injected into it. Hence, the management would not mind supporting such a business.

Therefore, to easily acquire an MFB loan, open an account with them and keep it active.
In all, with a minimum capitalization base of over 20 million naira each and about 612 of these microfinance banks currently registered with the CBN, both within and outside the country, sleepless nights over loan acquisition for business is now a thing of the past. For those in Lagos, CBN-certified MFBs in the city include, Susu MFB, which is situated at 34, Commercial Avenue, Sabo-Yaba and Integrated MFB (which was awarded the best MFB for the year 2007 by the Central Bank of Nigeria) located at 64, Adeniyi Jones Avenue, Ikeja.
Others include Wize Trade MFB that is at Investment House, 8th Floor, 21/25 Broad Street, Lagos Island and Ipodo-Ikeja MFB of 46, Obafemi Awolowo Road, Ikeja. A full list of the whole 612 can be obtained from CBN website, www.cenbank.org.

Step-by-step Guide On How To Apply For MFB Loan

Below are the necessary steps to take when applying for a microfinance bank loan.
l .Open a savings or current account for at least a month.
2. Write and send a letter to apply for the loan to the bank or go to the bank and apply in person.
3.Obtain 2 guarantor forms. l Take them to two persons who you are sure can stand for you as referees to fill.
4 .After filling the form, submit it to the bank with a cheque of an amount greater than what you are borrowing. (This cheque is your collateral. The bank does not withdraw the money immediately, but it would if you default in paying back the loan.)