AB Microfinance Bank Nigeria loans: 2023 Review

Ab Microfinance Bank Nigeria

AB Microfinance Bank Nigeria loans at a glance

AB Microfinance Bank Nigeria loan packages are aimed at individuals who run intensive businesses that have been around for more than a year. Entrepreneurs who own small and medium-sized enterprises (SMEs) can benefit from AB Microfinance Bank Nigeria’s quick and affordable SME loans.

Even though there are different categories of loan packages from AB Microfinance, all of them can be used by entrepreneurs. Thus some of the advantages are:

  • Focused attention that satisfies the needs of entrepreneurs
  • Interest rates reduce on reducing balance
  • High maximum loan amount

A few of the disadvantages, however, are:

  • Only available to residents of Lagos, Oyo, Anambra, Abia, and Ogun
  • Lenders must show 12 solid months of business activity before they can be considered for a loan
  • Both Collateral and a Guarantor are needed

Do I qualify for an AB Microfinance loan?

You qualify for an AB Microfinance loan if you are an entrepreneur with an active business of over 12 months. You do not need to have savings or a bank account at AB Microfinance Bank to qualify for a loan. All you need to have is an existing and viable business. 

Some other basic requirements include that you must:

  • Be either 21 years old or above
  • Be a resident of Nigeria
  • Own a business, and this business must be located in the current operating areas of AB Microfinance bank (Lagos, Oyo, Ogun, Anambra, Ondo, Abia, Ibadan, Abeokuta, Ota, and Onitsha)
  • Have proof of steady activity (for 12 months)
  • Have good credit history

How to apply for an AB Microfinance loan?

Visit the AB Microfinance Bank website here and fill out the form to request a loan. Some of the details you will need to apply include the following:

  • Your name
  • Phone number
  • Email (this is optional)
  • Valid ID (Driver’s license, National I.D Card, International passport, or voters card)
  • Certificate of Incorporation
  • A valid form of collateral
  • One Guarantor

Your loan request will be evaluated on-site by AB Microfinance Bank’s lending staff who will determine whether or not your request can be granted within two days. If approved, your loan will be disbursed into the account of your choice within three working days.

How much can I borrow from AB Microfinance?

There are three major categories of loan packages available at AB Microfinance bank:

Each category has a wide variety of loan packages for different needs, but the general minimum amount you can borrow is ₦15,000 while the maximum is ₦3,000,000 for housing loans, ₦20,000,000 for micro-loans, and ₦30,000,000 for SME loans.

AB Microfinance Interest rate and loan tenure

Just like the lending limits, interest rates and tenures differ from loan package to loan package. The minimum duration for a microloan is one month; SME loans have a minimum duration of 6 months while housing loan tenures can be flexible. Microloan interest rates range from 5.0% to 6.6%. SME loan interest rates range from 2.8% to 4.7% while housing loans rate interests range from 4.0% to 4.5%. The general maximum tenure, however, is 24 months.

Customers who repay their loans on time are guaranteed interest rate discounts.

Other loan fees and penalties

There is always a one-time 1% disbursement fee and a one-off 1.5% (0.6% for SME loans) insurance fee on the disbursed amount. Customers are rewarded for repaying loans on time, while customers who do not pay their loans will be punished with lower loan limits and slower processing times.

Benefits of AB Microfinance loan

AB Microfinance loans are dedicated to entrepreneurs. This makes it easier for entrepreneurs (no matter how small your business is) to finance their businesses as long as they have the right documentation. Reducing interest rates makes it easier to repay loans on time and this, in turn, helps entrepreneurs to build a good credit history.

A very low minimum loan amount and high maximum loan amount ensure that entrepreneurs can receive the help they need no matter how small or big their businesses are.

Where AB Microfinance can still improve

AB Microfinance Bank can improve on the loan application and approval times. Most individuals who seek loans sometimes seek loans with urgency, and having to wait 3 – 5 days before receiving funds will never be a solution as opposed to other lenders who process applications and disbursements at faster rates.

The process of asking for both a guarantor and collateral is also needless as either one should do. Other lenders would either require you to have at least one (or even none) when applying for a loan. AB Microfinance bank loans can ask for either collateral or guarantors to help entrepreneurs process loans faster.

Regardless, AB Microfinance remains a top-tier lender option for entrepreneurs in Nigeria because of its dedicated approach to financing businesses that have solid transaction and credit records. With all the documents and requirements in place, you can enjoy loan benefits from AB Microfinance banks that most other lenders in Nigeria cannot boast of.

Frequently Asked Questions (FAQ)

How do I make a loan complaint?

Call (+234) 902 496 9999 or (+234) 902 496 9778 to lodge your complaints directly to a customer care service representative. You can also send an email to [email protected] or visit the main branch 28, Akintoye Shogunle Street, Ikeja, Lagos or any branch nearest to you to physically submit your complaint. AB has 16 branches all over Lagos, 4 branches in Ibadan, 4 in Anambra, and one in Abeokuta, Ota, Ondo, Onitsha, and Abia state, so you are likely to find a branch near you.

Can I apply for an AB Microfinance loan from my mobile phone using USSD?

Yes. Dial 389755# to apply for a loan with your phone. There are no charges on the transaction. You will, however, need to have an AB Microfinance bank account to use this service.

Does AB Microfinance loan have a mobile application?

Yes. AB Microfinance has an application on Google Play called MyABMobile that requires your device to have an Android 4.1 and up operating system, and an application on the Apple Store called myABmobile. To use these applications, however, you will be required to have (or create) an account with AB Microfinance.

Do I need collateral to apply for an AB Microfinance bank?

Yes. The collateral required is always flexible, however, and it depends on the loan size you wish to obtain, ranging from business equipment or products to household goods.

Who can access AB Microfinance Bank’s Housing loans?

Apart from business owners who have access to all of AB microfinance bank’s loan packages, salary earners who wish to own their own homes also have the opportunity to take advantage of the package. The housing loan can be used to purchase a new shop, renovate an existing shop or home, or construct new infrastructure for business or personal purposes.