A Microfinance bank is a type of bank that offers small loans, or microloans, to individuals, entrepreneurs and small businesses. These banks typically function to provide opportunities to low-income regions where small amounts of money can go a long way.
Simply put, Microfinance banks ultimately provide credit to those who are unable to access the type of capital needed to develop businesses or kick-start their entrepreneurial dreams.
According to the Apex Bank, Central Bank of Nigeria (CBN), there are 898 Microfinance banks in Nigeria.