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NPF Microfinance Bank: See How to Get Loan from Microfinance Bank

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NPF Microfinance Bank: See How to Get Loan from Microfinance Bank

NPF Microfinance Bank: Are you are that there is a Microfinance Bank being operated by the Nigerian Police Force? Are you I need of a loan to upgrade your business? Have you thought of getting a loan anywhere?

Do you even know the process involved in getting a loan from any microfinance bank? This article will enlighten you about the NPF Microfinance Bank and how to get a loan from any microfinance Bank. Read through Carefully.

Microfinance banks in Nigeria are financial institutions that provide small loans to individuals or groups. They also give entrepreneurs and organizations, access to credit facilities for their businesses.

They grant loans to individuals and small scale enterprises (SMEs) to be paid back in small installments with a little interest.

NPF Microfinance Bank commenced business on 20th August 1993 at 1 Ikoyi Road Obalende, Lagos having obtained a provisional license to operate as a Community Bank on 12th July 1993 from Central Bank of Nigeria.

The bank obtained its full license to operate as a Community Bank on 24th January 2002. On 31st December 2007 the bank converted from its Community Bank status to a Microfinance Bank following Central Bank of Nigeria directive to all Community Banks.

The approval granted to the bank was a unique one as it allows the bank to open branches in all the states.

NPF Microfinance Bank: What is it all About?

NPF Microfinance Bank Plc (Formerly NPF Community Bank Ltd) was incorporated on the 19th May 1993 as a Limited Liability Company under the provision of the Companies and Allied Matter Act cap c20LFN 2004.

The bank provides Banking services to both serving and Retired Officers and men of Nigeria Police Force, its ancillary institution and the general banking public.

Over the years, NPF Microfinance Bank Plc has continued to live up to its dream of becoming the bank of first consideration for all Police businesses and selected other businesses.

Through its continued improvement in personalized service delivery, and most importantly, by employing committed and trustworthy personnel to deliver excellent financial results comparable to none in the industry.

At NPF Microfinance Bank Plc, a strong capital base, development of superior asset quality, professionalism and corporate governance are abiding principles. The bank’s customer-specific approach to customer services consistently reinforces its value creation processes towards assisting customers in their goals.

For more information, visit www.npfmicrofinancebank.com

NPF Microfinance Bank Salary Account Loan Requirement

  • Loan application letter.
  • Letter of introduction from the employer.
  • Letter of domiciliation of monthly salary to NPF Microfinance bank from the employer or MSS (Mechanized salary section).
  • Physical evidence of the loan purpose.
  • Two acceptable salary current account holder guarantors.
  • 3% mandatory deposit.
  • Credit bureau report.

NPF Microfinance Bank School Facility Loan Requirement

  • Loan application letter on the school official paper duly signed by the proprietress/proprietor of the school.
  • Ministry of education provisional approval.
  • Certificate of incorporation.
  • Cash flow statement of the school.
  • Site visitation and verification report.
  • Two properly executed personal guarantor form for non-salary guarantors while salary account guarantor can fill the bank guarantor form except the loan amount is ₦3million and above.
  • 30% equity contribution in case of asset acquisition facility for the school.
  • Letter of domiciliation of school fees to the bank.
  • Credit bureau report.

NPF Microfinance Bank Agricultural Loan Requirements

  • Loan application letter.
  • Two properly executed personal guarantor form for non-salary guarantors while salary account guarantor can fill the bank guarantor form except the loan amount is ₦3million and above.
  • Cash flow statement of the farm.
  • Farm report.
  • Site visitation and verification report.
  • Agriculture insurance policy of the farm with bank interest noted on it as the first beneficiaries (where applicable).
  • Credit bureau report.

NPF Microfinance Bank Transport Business Requirement

  • Loan application letter.
  • Two properly executed personal guarantor form for non-salary guarantors while salary account guarantor can fill the bank guarantor form except the loan amount is ₦3million and above.
  • Cash flow statement of the business.
  • The vehicle must be comprehensively insured with the bank’s interest noted on it as beneficiary.
  • Vehicle fitness report and vet by the credit officer or branch manager.
  • Credit bureau report.
  • Site verification and verification report of the customer residence.

NPF Microfinance Bank Corporate Institution Loan Requirement

  • Loan application letter on the company official paper duly signed by the managing director or the prime mover of the enterprise in case of one-man business.
  • Board resolution authorizing the company to borrow from the bank.
  • Certificate of incorporation.
  • Memorandum and article of association.
  • Company audited financial statements and cash flow statements.
  • Two properly executed personal guarantor form for non-salary guarantors while salary account guarantor can fill the bank guarantor form except the loan amount is ₦3million and above.
  • Guarantee of the prime- mover/or directors of the company.
  • Credit bureau report.
  • Site visitation and verification of report of the business location.

NPF Microfinance Bank LPO Financing Requirement

  • Loan application letter for the individual customers while on official paper for the corporate institutions.
  • Two properly executed personal guarantor form for non-salary guarantors while salary account guarantor can fill the bank guarantor form except the loan amount is ₦3million and above.
  • Copy of the local purchasing order (LPO) from the issuing company.
  • Copy of verification letter of the LPO.
  • Copy of domiciliation letter of LPO proceeds to the bank verified by the issuing company.
  • Credit bureau report.

NPF Microfinance Bank Consumer Loan Requirement

  • Loan application letter duly signed by the account holder and accompanied by a preform invoice from the management approved vendor.
  • Letter of introduction from the employer while in case of a police officer from his/her command.
  • Letter of domiciliation of monthly salary to NPF Microfinance Bank from the employer of MSS (police mechanized salary section).
  • Two acceptable salary current account guarantors.
  • Credit bureau report.
  • Assets comprehensive insurance with the bank’s interest noted on it as the first beneficiary (where applicable).
  • Asset to be purchased must be registered under the national collateral registry.
  • Credit bureau report.

NPF Microfinance Bank Sharp Loan Requirement

  • Loan application letter.
  • One guarantor.

NPF Microfinance Bank Micro Loan Requirement

  • Loan application letter.
  • Two guarantors.
  • 5% – 30% mandatory deposit.

NPF Microfinance Bank as a Business Bank

NPF Microfinance Bank Plc. is engaged in the business of microfinance banking and has emerged as one of the leading microfinance banking institutions in this sub-sector.

It is a professionally managed and conservative bank, providing a wide range of banking products and services to consumers at its various locations.

Some of the services provided include Retail Banking, Loans and Advances, Money Market Activities and Financial Advisory services (to members of its community and the larger society).

Their main service point is to create a product focus that will give our financial institution a competitive advantage in service delivery to customers.

The Bank’s leadership assets are manifested in the ability of our Managers to combine strands of knowledge to create fast action value for the customers.

They combine vision with precision, using creativity, skills, and ideas to expand their business reach into the lives of the customers by helping them fulfill their needs with incredible speed. Their services are:

  • NPF Services
  • Savings Services
  • Credit Services
  • Treasury Services
  • Non-Financial Services
  • Remittances

NPF Microfinance Bank Recruitment and Selection Policy

NPF Microfinance Bank Plc as a responsible corporate organization is an equal opportunity employee.

This document is developed to put in proper perspective the recruitment policy (process and procedures) of NPF Microfinance Bank Plc as a guide to future exercises.

As an organization that engenders trust and integrity, NPF Microfinance Bank Plc is committed to a fair and consistent approach to recruitment and selection through the promotion of equal employment opportunities in all aspects.

This is done by appointing and promoting the person best qualified for a role without discrimination through selection processes that are open, transparent and based on merit.

Steps on How to Get a Loan from Most Microfinance Banks

The roles of microfinance banks in the development and growth of a country’s economy cannot be overemphasized. They play key roles in poverty alleviation, agricultural development, and increase in small scale businesses and so on. Here, we will focus on how to get a loan from microfinance banks.

  • Have a Genuine Reason Or Project For The Loan

Microfinance banks will never loan you money for frivolities. If you want to get a loan from a microfinance bank, you must have a genuine reason for it.

It could be for business purposes or personal development, so long as your purpose for applying for the loan is important.

Microfinance banks only grant loans that fall into the category of small and medium enterprises (SMEs). They are also into business, and no business wants to run into a loss. Granting loans is a serious business.

Therefore, whatever you need credit facility for, must be a serious business or an important project, with a guaranty that you will repay your debt.

The kind of credit facility that most microfinance banks grant is loans for business purposes, asset procurement, agriculture, educational purposes and loans for salary earners. No microfinance bank will give you a loan if there is no money back guaranty.

You can further facilitate access to loan from a microfinance bank by presenting a document in respect of your reason for applying for that loan. It could be in the form of a document concerning a project you are working on, for which you need financial assistance.

For instance, if you are a contractor needing financial assistance to complete a project for which you have been paid in part, in which you will not be given the balance of your payment until the project is completed.

All you need to do is present the proposal for the contract, acceptance of your proposal, payment agreement and all other relevant documents. This will stand as a proof that your purpose for applying for the loan is genuine. It will also serve as a reference.

  • Open an Account With the Bank

The first thing you will be asked to do when you go to apply for a loan in a microfinance bank is to open an account with the bank. This is to show that you are serious and you are willing to be committed to the bank.

  • Service the Account For A Period Of Time

It does not just stop at you opening an account with the microfinance bank, you need to actively service the account i.e. paying and withdrawing money from the account constantly before you can be qualified to apply for a loan.

This will help them to build trust in you. It will also assure the bank that you will repay the loan if it is granted.

  • Present Collateral or Its Documents

You also need to present collateral when applying for a loan in a microfinance bank. This may not apply to small business loans for petty traders and individuals.

In fact, some microfinance banks do not require collateral e.g. Lift Above Poverty Level (LAPO). But, it will be necessary for business loans that fall into the category of assets acquisition, agriculture and other loans of a larger amount.

Your collateral must equate the amount of loan you are applying for or supersede it, but it cannot be lesser in money value to the loaned amount.

These are the basic steps to acquiring a loan from microfinance banks. It may vary from country to country, but this process is peculiar to Nigeria.

We believe this information on NPF Microfinance Bank is helpful to you? Why not share it with your friends out there by clicking on the share button on this website. You can as well subscribe to be updated for further information concerning this topic.

CSN Team.

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