Understanding Microloans

Need funding but don’t qualify for a big bank loan? Microloans offer a simple, flexible way to access small amounts of money — especially for business needs.

  • What are microloans? Small loans, usually ₦5,000 to ₦500,000, designed to help individuals start or grow a small business.
  • Why they matter: They’re a great option for people with little or no credit history — especially in informal sectors.
  • Easy to access: Fewer documents, faster approval, and lower barriers than traditional loans.
  • Income boost: A microloan can help you buy tools, stock products, or expand services — all of which can raise your income.
  • Great for first-time borrowers: Repaying on time builds trust and opens doors to bigger loans later.
  • But be careful: Interest rates can be high, and missed payments lead to debt traps. Borrow only what you’re confident you can repay.

Microloans are powerful when used wisely. They’re not free money — they’re a stepping stone to financial growth if managed with care.