Credit Products – Ifelodun Microfinance Bank

Welcome to Ifelodun Microfinance Bank Limited , Ikirun, Osun State.

Aibio-Business Support Programme

Under our business support programme, we concentrate on granting credit to the unemployed youth and the active poor/groups in all our operational coverage areas.

The maximum credit is subject to single obligatory limit but ranges from N25,000 and N250,000 to individual and groups respectively with evidence of good business plan, realistic cash flow and character reference at a rate of 3% per month on reducing balance

The loan duration is for a maximum period of 6 months and is made available to the transporters; petty traders; artisans; technicians and to support other business ventures.

The loan repayment pattern is supported by a compulsory savings plan with at least 10% of the repayment installments transfer to Planet C-Loan Repayment Comfort Account.

Aibio-Micro Insurance Deposit Account

Through this product, the bank will secure insurance policy for all loan clients of the bank, against accident or any unforeseeable hindrance that may affect easy repayment plan as proposed by the client. A fractional sum charged on their loan as loan administration fee shall be used to pay individual insurance premium to cover the loan duration.

Aibio-Micro Agriculture Support Scheme

This scheme is meant for subsistence farmers either on individual or group basis to finance the purchase of seedlings; farming tools; chemicals and fertilizers for planting of cash crops and its eventual harvest running between 6 to 12 months. The loan is facilitated through the Central Bank under Micro-Small Medium Enterprises Development Fund Scheme. The interest rate and other operational guidelines is determined by the CBN; however, the bank would be jealously guided by Know Your Customer guideline (KYC).

Aibio-Micro Health Support Scheme Account

Through this product, the bank secure health insurance policy for all loan clients of the bank, against any health-related unforeseeable hindrance. The scheme is anchored by a recognized Health Management Organization with a special rate. Client of the bank operating under the scheme will have access to first aid medical attention as and when necessary to enable them carry out their daily business activities. A fractional sum charged on their loan as loan administration fee is to pay individual insurance premium to cover the loan duration.

Aibio-Micro Lease Scheme

This is tailored to artisans and small-scale manufacturers; the bank will devote 5 – 15% of loan-able funds to leasing. Such equipment include aggro-allied machines like cassava grater, palm kernel cracker, palm oil processing machine, pepper grinding machine etc. Transportation incorporate Motor cycle and Motor Vehicle. Office machine and equipment like computer, photocopier, and spiral binding equipment will also be procured and leased to clients. Operating clients under this scheme must form themselves into group. A special focus on artisan customers through equipment leasing is embarked upon. The bank encourages its clients to save gradually towards leasing of an asset or equipment of choice with option of buy back. Clients are required to have saved at least 20% of the cost of the asset/equipment before the bank advanced the balance for the purchase of the asset/equipment. The micro lease period ranges from six months to nine months at 3% per month on the reducing balance.

Aibio-Salary Advance for Civil Servants

Our preliminary studies have revealed that majority of low-income earner are civil servants. This is a unique group, hence the bank provides micro salary advances in form of loans to Teachers and Civil Servants to support their monthly salaries when there are urgent financial needs before the pay day.
The facility is more than 30% of the customers’ net monthly pay. The loan is repayable within two months at 3% per month reducing balance.

Aibio-Event Booster Credit

This product is designed for interested pilgrims to Mecca or Jerusalem however, customers can also save towards wedding ceremony, graduation ceremony, burial ceremony, children/ward school fees and many more. Customers save towards the events while bank support with outstanding balance close to D-day. The loan is repayable within six months at 3% per month on the reducing balance.

Aibio-Educational Advancement Scheme

The bank facilitates the above scheme to Students that have open and operate a target savings account either solely or jointly with parent(s) Repayment plan can be spread over a period of one term or session. A regular savings scheme must be in operation to support the repayment plan. Interest charged on the facility is not be more than 3% per month on reducing balance basis.

Aibio-L.P. O & Contract Financing

L.P.O sourced from blue chip companies and government agencies are accorded financing taken appropriate measure to secure its repayment. The duration of any credit exposure on Local Purchase Order or Contract Financed is not more than 3-Months with 5% flat charge per month.
The bank adopts group and individual lending methodology, however more effort is to be placed on group lending to support repayment plan and take care of the collateral issue.