Fairmoney is a digital microfinance bank that provide instant loans with no stress out.
FairMoney is a digital microfinance bank that provides instant loans and financial services to individuals and small businesses in Nigeria. It was founded in 2017 with the aim of providing affordable financial services to underserved communities in Nigeria.
FairMoney uses technology to offer quick and easy loan applications, approvals, and disbursements to its customers. Customers can apply for loans through the FairMoney mobile app, which is available on Android devices. The app analyzes the customer’s creditworthiness based on their transaction history and other data points, and then provides them with a loan offer.
FairMoney also offers other financial services such as savings and investment products, bill payments, and airtime top-ups. The company is focused on financial inclusion and aims to provide access to financial services to everyone, regardless of their income level or location.
FairMoney has received several accolades for its innovative approach to financial services, including being named the Best Consumer Finance Mobile App in Nigeria at the 2020 Global Business Outlook Awards.
A microfinance bank loan is a small-scale loan provided by microfinance banks to individuals or small businesses that do not have access to traditional banking services. Microfinance banks typically offer loans to low-income individuals, micro and small businesses, and other underserved groups who do not meet the requirements for loans from commercial banks.
The loans provided by microfinance banks are typically smaller in size compared to commercial bank loans and are tailored to meet the specific needs of the borrower. They may be used for a variety of purposes such as business start-up, expansion, or investment in assets.
Microfinance bank loans often have flexible repayment terms, with weekly or monthly repayments that are affordable for the borrower. Interest rates on microfinance bank loans are typically higher than those of commercial bank loans, as the cost of lending to small businesses and low-income individuals is higher due to the higher risk involved.
To obtain a microfinance bank loan, borrowers must meet certain eligibility criteria, such as having a steady source of income, providing collateral or guarantors, and demonstrating the ability to repay the loan. Microfinance banks may also require the borrower to participate in financial literacy training programs to help them manage their finances and repay the loan on time.
The steps to access a microfinance bank loan may vary depending on the specific microfinance bank, but generally, the following steps may be involved:
- Research: Research and identify the microfinance bank that offers the type of loan you need, and that is suitable for your business or personal financial goals.
- Meet the eligibility criteria: Ensure you meet the eligibility criteria set by the microfinance bank. Eligibility criteria may include minimum age, residency, source of income, credit score, collateral, or guarantors.
- Prepare documentation: Prepare the necessary documentation required by the microfinance bank. This may include government-issued identification, bank statements, proof of income, business registration documents, or collateral documents.
- Submit application: Complete and submit the loan application form either online or at the microfinance bank’s office.
- Wait for approval: Wait for the loan application to be reviewed and approved. This may take a few days to a few weeks, depending on the microfinance bank.
- Disbursement: If the loan application is approved, the funds will be disbursed to your account, or you will be given a cheque or cash depending on the mode of disbursement.
- Repayment: Repay the loan according to the repayment schedule agreed upon with the microfinance bank. Make sure to repay on time to avoid default and negative credit ratings.
It is important to note that before taking a microfinance bank loan, it is important to understand the terms and conditions of the loan, including interest rates, fees, and repayment schedules. It is also advisable to compare different loan options and choose the one that best suits your financial situation.