Afole Microfinance Bank Limited
1. Introduction
This Loan Policy ("Policy") sets out the general terms governing credit facilities offered by Afole Microfinance Bank Limited ("AfoleMFB", "we", "us", or "our") to individuals, micro-enterprises, and small businesses. It supplements our Terms and Conditions and applies to all loan applications, approvals, disbursements, and repayments.
Specific loan offers may include additional terms in your loan agreement, offer letter, or repayment schedule. Where there is a conflict, the signed loan agreement prevails for that facility.
2. Scope
This Policy applies to:
- New and existing borrowers applying for or holding credit with AfoleMFB;
- All loan channels including branch, agency banking, USSD, and mobile application;
- Renewals, restructures, and top-ups approved under our credit policies.
3. Loan Products
AfoleMFB offers the following loan products (availability may vary by location and appraisal outcome):
| Product | Description | Indicative Rate* |
|---|---|---|
| Micro Loan | Short-term credit for working capital and personal needs of active low-income individuals and micro-enterprises. | 4% per month (flat) |
| Esusu Loan | Credit linked to group savings (esusu/ajo) participation and repayment discipline. | 10% upfront / flat |
| SME Loan | Medium-term financing for registered and informal small businesses with demonstrable cash flow. | As per offer letter |
| Term Loan | Structured facility repaid over an agreed tenor with fixed or variable instalments. | As per offer letter |
| Overdraft | Pre-approved limit allowing account debit beyond available balance up to an agreed ceiling. | 10% per annum / as agreed |
| Credit Line | Revolving facility for repeat drawdowns within an approved limit and validity period. | As per offer letter |
*Indicative rates are subject to change based on risk assessment, tenor, and regulatory requirements. Your offer letter states the applicable rate for your facility.
4. Eligibility Criteria
Applicants must generally:
- Hold or open an active account with AfoleMFB;
- Meet minimum age, KYC, BVN, and NIN requirements;
- Demonstrate stable income, business activity, or savings history as applicable;
- Have no unresolved delinquency with AfoleMFB or other financial institutions (subject to credit bureau checks);
- Provide acceptable guarantor(s) and/or collateral where required by product policy;
- Not be on any sanctions, watchlist, or regulatory restriction list.
5. Application and Appraisal
Loan applications may be submitted at any branch, through authorized agents, or via approved digital channels including our loan application page. Required documents typically include valid ID, proof of address, business registration or activity evidence (for business loans), bank statements, and guarantor details.
All applications undergo credit appraisal including affordability assessment, credit bureau enquiry, and internal scoring. Approval is at the sole discretion of AfoleMFB and may be declined without obligation to state reasons.
6. Interest Rates and Fees
Interest, processing fees, management fees, insurance premiums (where applicable), and penal charges are disclosed in your loan offer before disbursement. Esusu and certain micro loan products may apply upfront interest as stated in the offer.
Additional charges may apply for:
- Late payment or default (penal interest as permitted by CBN guidelines);
- Loan restructuring or extension;
- Legal recovery and enforcement costs on defaulted facilities;
- Third-party valuation, search, or documentation fees where applicable.
7. Disbursement
Approved loans are disbursed to the borrower's AfoleMFB account or designated account after execution of the loan agreement and satisfaction of all pre-disbursement conditions including guarantor acceptance and collateral perfection where required.
Disbursement may be made in a single tranche or in instalments for term and SME facilities as specified in the offer letter.
8. Repayment
Borrowers must repay in accordance with the agreed schedule (daily, weekly, monthly, or bullet as applicable). Repayment may be made through cash deposit, account debit, standing order, USSD, mobile app transfer, or other channels we make available.
You authorize AfoleMFB to debit any account you hold with us for outstanding loan obligations where you have provided consent or where permitted by your loan agreement.
9. Security and Guarantees
Depending on the loan type and amount, we may require personal guarantees, group guarantees, post-dated cheques, movable or immovable collateral, lien on deposits, or salary domiciliation. You warrant that all security offered is free from encumbrance and agree to maintain insurance on pledged assets where required.
10. Default and Recovery
A loan is in default when you fail to:
- Pay any instalment or interest on the due date;
- Comply with material covenants in your loan agreement;
- Provide updated information when requested;
- Maintain required collateral or insurance coverage.
Upon default, AfoleMFB may:
- Apply penal interest and recovery charges as disclosed in your offer;
- Report the default to licensed credit bureaus;
- Engage guarantors and enforce security;
- Initiate internal and external collection including legal action where necessary.
11. Early Settlement
You may repay your loan in full before the maturity date subject to any early settlement terms in your loan agreement. Partial prepayments may be applied to reduce principal or future instalments as specified in your offer.
12. Credit Reporting
By applying for credit, you consent to AfoleMFB obtaining credit reports from licensed credit bureaus and reporting your repayment performance, including defaults, in accordance with CBN and credit bureau regulations.
13. Amendments
We may update this Policy to reflect changes in regulation, market conditions, or internal credit standards. Existing facilities remain governed by their signed agreements unless restructured by mutual consent.
14. Contact Us
For loan enquiries, applications, or complaints:
Afole Microfinance Bank Limited
Beside Owa's Palace, Isale Idofin, Otan Ayegbaju, Osun State, Nigeria.
Customer Care: 0815 332 9527, 0805 621 1257 / info@afolemfb.ng
Website: https://afolemfb.ng
© 2026 Afole Microfinance Bank Limited. All rights reserved.