How to access loan from Baobab Microfinance Bank
March 5, 2021
How to access loan from Baobab Microfinance Bank
Baobab Microfinance – If as a business owner or student resident in Lagos Nigeria and other cities as will be mention, you’re in need of funding to execute a business project, you may just have arrived at the right web page.
Funding for businesses has never been easier in the past, that said, the needle appears to have moved North-wide giving how almost stress free one can access funding these days at the strap of shoes strings.
You are on this webpage because you probably want to know the process flow and dynamics involved in accessing a business loan with Baobab Microfinance Bank.
With that taken care of, let me take you into a journey of discovery on easy loan facility.
About Baobab Microfinance Bank
Baobab is a Microfinance bank licensed by the Central Bank of Nigeria, based in Lagos and a few cities.
The bank offers financial services to small and medium sized businesses in Africa and beyond.
It’s been tailored with financial inclusion in its top gear, with a vision to become the partner of choice for entrepreneurs and objective enshrined into helping its customers unleash their potentials through availability of funding.
Who can access loan with Baobab Microfinance bank?
From the list above, it can easily be drawn that Baobab loan scheme covers virtually all sensitive aspect that aids financial inclusion in the nation’s economy.
Ranging from the entrepreneurial class to ordinary traders then the much desired students, who most often are in need of funding for small businesses to at least start off having been to the nation’s ivory towers.
Requirements for accessing Baobab loan
- To apply and be considered at this time, you must live or work in Lagos Nigeria, Oyo, Ogun, Kaduna and Abuja since the management in her own wisdom deems it a geographical risk appetite.
- You should have two valid guarantors in place.
By this statement, it suggests that despite not required to produce collateral, you sure need someone to stand in and vouch for your credibility.
A credible guarantor is usually required to stand in and pay off whatever balance you owe the bank should you fail to meet your repayment.
Guarantors usually are people who are ready to take risks on your behalf, affirming that they can stand in to settle your outstanding should need be.
That said, not everyone is accepted as a guarantor, the bank will in its own position communicate you on what class of persons she deems credible guarantors.
- Two completed signature cards
- An application form filled by you according to instruction therein sequel to your loan consideration.
- You must be between the ages of 22-58
- You are required to make available a copy of your utility bill not later than 90 days/three months.
Similarly, every loan package has its ups and downs, I make bold to advise you to get yourself acquainted with possible benefits and disadvantages of this loan.
Where the advantage outweighs the disadvantage, it should be perceived as an affirmative nod, however as it suits and fits your financial outlay, how much you’re willing to let go and all what have you.
Upside of Baobab MFB loan
- The loan is very flexible
- You are allowed to make your repayment at a very convenient mode as agreed initially
- Interest rate charged on reducing balance;
This is a practice where the interest you’re expected to pay while repaying the loan goes down as the principal balance reduces.
Assuming you received a loan of N1 million naira from Baobab at an interest rate of say 7%.
If by instance you were supposed to make a monthly repayment of N150,000.
The interest rate may move down a bit from 7% to 6.9% percent subsequently as you continue to pay back your loan, but strictly as deemed fit by the bank.
It goes down gradually till you pay off. Most people prefer this type of loan since it reduces your interest rate accrued over time.
Downside of Baobab MFB loan
- Guarantors are key to accessing this loan, which is not always easy to come by, considering clauses and demanding phrases attached to the guarantor’s form.
Those who can vouch for you are people who hold your financial reliability to a great esteem.
- This loan can only be accessed by Lagos residents, Oyo, Ogun, Kaduna and Abuja who live and work in these cities.
If you stay outside Lagos or any of the aforesaid cities this may not be ideal loan for you, if you however meet the geographical requirement, why not shoot your shot and see how far it can go.
- You are required to pay upfront a loan application fee of N4000
- You are to leave 10% of the loan amount in your savings account accordingly.
Products by Baobab MFB
- Micro loan
- Micro+ Loan
- SME Loan
|Loan Type||Min – Max Loan||Duration||Class of borrowers|
|Mini Micro Loan||N20,000 – N100,000||6-12 months||Accessible to business owners|
|Micro Loan||N100,000 – N500,000||6-12 months||Accessible to business owners|
|Micro+ Loan||N500,000 – N2,000,000||6-18 months||Accessible to business owners|
|SME Loan||N2,000,000 – N10,000,000||6-18 months||Accessible to business owners|
How to apply for a loan
Step 1. Click here to apply
Step 2. Fill the form as seen then submit
Step 3. Service will call you back and redirect you to the nearest branch
Step 4. Endeavor to visit the branch with your valid ID card
Step 5. An account will be opened for you, where your loan disbursement will be credited.
Frequently asked questions on Baobab Microfinance bank
Q1. What are your loan requirements?
Ans. To access the facility, you are required to have a business which location should be within the bank’s lending area (Lagos, Oyo, Kaduna, Abuja and Ogun)
Your business must have been an existing one.
Read also: How to access VFD Bank loan in simple steps
Q2. How long does it take to get a loan?
Ans. It doesn’t take longer so long necessary requirements are adequately met, usually less than three working days.
Q3. What is the interest rate?
The interest rate differs based on the lending amount, found somewhere around 7%.
Q4. Where can I find the bank branches in Lagos?
1. Ajah Branch -Roxy Plaza KM 20 Lekki-Expressway, Ilaje Bus stop, Ajah Lagos.
2. Alaba Branch – No 130 Olojo Drive Alaba International Market Road, Lagos
3. Broad Street Branch – 95, Broad Street Island, Lagos
4. Egbeda Branch – 65 Egbeda Adimu Road, Beside Primal Tech Plaza.
5. Garki Branch –No 38 Ladoke Akintola Boluevard Garki II
6. Ikeja Branch – Plot 114, Obafemi Awolowo Road Lagos
7. Ikorodu Branch – 41, Lagos Road Benson Bus Stop, Ikorodu Lagos.
8. Ikotun Branch – 142/144 Ikotun Egbe Road Cele Bus Stop, Ikotun Lagos
9. Kachia Branch – 7A Kachia Road Kaduna
10. Kafanchan Branch – A9 Kagoro Road, Kafanchan, Kaduna
11. Kawo Branch – RA 2, Zaria Road, Hayin Banki Kawo, Kaduna
12. Mushin Branch – 21 Palm Avenue Mushin Lagos
13. Nyanyan Branch – 20A Idiroko Road, Sango Ota, Ogun
14. Trade Fair Branch – Block A Opposite Balogun Gate, BBA Market Trade Fair Lagos
15. Tudun Wada – No 2 Poly Road Tudunwada Kaduna
16. Wuse Branch – Plot 2135 Herbert Macaulay Way, Wuse Zone 5 Abuja
17. Yaba Branch – Plot 314 Herbert Macaulay Way, Sabo Yaba Lagos
18. Zaria Branch – 3, Main Street, Near PZ Zaria, Kaduna
There’s no limit to what you can achieve, every funding you’d ever thought exists out there could just be a perfect opportunity to oil your business, Baobab microfinance may just work out for you as an alternative funding opportunity.
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