Estate Microfinance Bank Website ... the best within your reach

1. What is Microfinance? Microfinance is the supply of loans, savings, and other basic financial services to the less privileged people. People living in poverty, like everyone else, need a diverse range of financial instruments to run their businesses, build assets, stabilize consumption, and shield themselves against risks. Financial services needed by category of people include working capital loans, consumer credit and savings, pensions, insurance, and money transfer services.
2. What are microfinance loans? The Central Bank of Nigeria (CBN) defines microfinance loans as small loans granted to micro enterprises by finance intermediaries on the basis of the borrower’s cash flow.
3. How many people in the world are poor? Experts estimate that about half of the world population; 3 billion people, lives on less than $2 per day.
4. What is a Microfinance Institution? A microfinance institution (MFI) is an organization that renders microfinance services to the less privileged people, by providing financial products (such as micro credit loans, insurance and access to savings) to them (micro-entrepreneurs — the working poor who previously were without access to financial services).
5. What types of businesses do micro-entrepreneurs operate? Micro-entrepreneurs run extremely diverse businesses known as micro enterprises. These endeavors are usually very small-scale, typically just supporting a single staff person — the micro-entrepreneur. However, sometimes businesses are successful enough to employ additional employees. Types of business vary widely by geographic location and may include shining shoes, selling items as a street vendor, selling agricultural products, raising chickens, selling milk to neighbors, weaving, sewing, or baking.
6. What are the roles of Microfinance Bank? Like the conventional Commercial Banks, Microfinance Bank basically performs financial intermediation, that is, servicing or financing the Deficit Economic Unit through the resources derived from the Surplus Economic Unit and at reduced interest rate. But, unlike the commercial banks, provides financial services such as credits and financial advisory to the active poor who ordinarily would not have access to such services due to its perceived characteristic risks level.
7. Who Are the Clients of Microfinance? The clients of microfinance—female heads of households, pensioners, displaced persons, retrenched workers, small farmers, and micro-entrepreneurs—fall into four poverty levels: destitute, extreme poor, moderate poor, and vulnerable non-poor.
8. Who is Estate Microfinance Bank? Estate Microfinance Bank (EMB) is a microfinance institute in Nigeria which is aimed at providing financial services to the less privileged, supports the delivery of very small, uncollaterized or less-than-normally collaterized loans, or other financial services, such as savings or insurance, for low-income clients.
*9. Must the clients of the EMB* provide physical Collateral/Security when lending?** It should be noted that groups and individual guarantees are acceptable as collaterals for microfinance loans.
*10. How do financial services rendered by the EMB* help the poor?** Poor people, with access to savings, credit, insurance, and other financial services, are more resilient and better able to cope with the everyday crises they face. Even the most rigorous econometric studies have proven that microfinance can smoothen consumption levels and significantly reduce the need to sell assets to meet basic needs. With access to micro insurance in EMB, poor people can cope with sudden increased expenses associated with death, serious illness, and loss of assets.
11. Can a cosigner borrow from EMB ? The restriction prohibiting a bank from lending to someone who has co-signed or otherwise guaranteed a loan from the same bank does not apply to EMB.
12. *Are the deposits in the EMB* safe and insured?** The Nigerian Deposits Insurance Commission one of the safety nets engenders the public confidence by insuring all deposits in the EMB . So, there is a high safety level in the EMB.
*13. What are the prospects of EMB?* The prospects of microfinance Banks among others are; i. The readiness of CBN/NDIC Management in providing the enabling environment ii. Relative Macro Economic Stability iii. This will further enhance productivity and economic development iv. Reduce the unemployment’s rate and vis-à-vis fight against corruption and crime.
14. What are the challenges of the MFB? The challenges of MFB among others are: i. Public risks aversion due to their previous experience(s) with failed related microfinance banks. ii. The business of MFB is relatively new, hence, faced with the problems associated with such. iii. The microfinance business has lots of inherent risks, and therefore makes its management more complicated and demanding than that of the commercial bank.
15. What is the difference between micro credit and microfinance? Microcredit refers specifically to loans and the credit needs of clients, while microfinance covers a broader range of financial services that create a wider range of opportunities for success. Examples of these additional financial services include savings, insurance, housing loans and remittance transfers. EMB also offer microfinance plus activities such as entrepreneurial and life skills training, and advice on topics such as health and nutrition, sanitation, improving living conditions, and the importance of educating children.
16. Why do you focus on women? Women have proven to be the best poverty fighters. Experience and studies have shown that they use the profits from their businesses to send their children to school, improve their families’ living conditions and nutrition, and expand their businesses.
17. Do very poor people repay their loans? Yes, Estate Microfinance Bank (EMB)clients are excellent credit risks. The repayment rate is between 95 and 98 percent.
18. Do people really get out of poverty? Estate Microfinance Bank(EMB) is not a silver bullet. It will not defeat global poverty by itself. But, it is an important part of the solution. EMB provides a stable and sustainable source of income that enables clients to climb steadily out of poverty, while providing better living conditions and opportunities for their families. For some, that progress means moving from a house made of mud to one made of wood. For others, it means better nutrition and the money to finally send their children to school.