Microcred Review: Legit Or Scam?

Microcred Nigeria, a subsidiary of the Microcred Group, has recently undergone a rebranding and is now known as Baobab Microfinance Bank. Baobab Microfinance Bank operates under the same financial institution umbrella across Africa and China. This rebranding initiative took place approximately three to four years ago. Initially established as a credit provider catering to micro-entrepreneurs, Baobab expanded its service offerings in 2018 to cater to a broader customer base. They now provide a range of savings and credit services to their customers.

Is Microcred (Baobab) Legit?

Microcred was founded by French investors in 2005 and received its national license in Nigeria in 2015. The approval was granted after Microcred bolstered its capital base to N1.4 billion in September 2015. With a long-standing history of regulatory compliance and licensing, Microcred (Baobab) is indeed a legitimate Microfinance Bank committed to offering hassle-free financial services to all its customers. The bank currently operates 11 branches in Lagos and seven in Kaduna. Since its inception in Nigeria in 2016, it has provided over N32 billion in credit facilities to 65,000 micro-entrepreneurs.

Services Offered By Microcred (Baobab)

  1. Unlocking Financial Potential for Entrepreneurs, Traders, and Students: Microcred (Baobab) understands the diverse financial requirements of entrepreneurs, traders, and students. To cater to their needs, the institution offers microloans, empowering individuals to secure funds of up to N1 million for their existing businesses. These microloans feature competitive interest rates, commencing at a minimum of 7%. The overall interest amount varies based on the loan’s duration, providing borrowers with valuable flexibility. Microcred (Baobab) operates with a commitment to financial inclusion, extending its services to individuals previously excluded from traditional banking. This category encompasses those who engage in daily financial transactions involving small sums of money, reside in remote and underserved areas, possess limited or no established credit history, or do not meet the conventional criteria imposed by larger financial institutions.
  2. Catalyzing Business Growth with Baobab’s Financial Support: Baobab Microfinance Bank is dedicated to fostering the growth and success of Small and Medium-sized Enterprises (SMEs) through its SME loans program. Entrepreneurs looking to consolidate or invest in their businesses can access substantial loans of up to N20 million. These loans are accompanied by flexible repayment terms, spanning a maximum of 24 months. The funds acquired through SME loans can be strategically utilized for working capital or the acquisition of essential fixed assets. Baobab recognizes the pivotal role played by SMEs in the economic landscape and aims to provide tailored financial solutions to support their endeavors.
  3. Account Opening
  • Current Accounts: Baobab Microfinance Bank offers a range of account types, each tailored to meet the diverse financial needs of its customers. The current account stands as a versatile option, enabling secure income management. With this account, individuals have the flexibility to make deposits and withdrawals as needed, ensuring that their financial resources remain easily accessible. This account is particularly well-suited for those seeking to efficiently manage their day-to-day financial transactions.
  • Savings Accounts and Savings Plans: Customers looking to maximize their income without incurring opening fees or transaction costs can opt for Baobab’s savings accounts or savings plans. These accounts provide a seamless pathway to increase savings and generate additional income. With zero-cost account opening and transactions, individuals can focus on growing their financial resources while enjoying the convenience and efficiency offered by Baobab.
  • Term Deposits: Baobab Microfinance Bank presents term deposits as an exceptional means of watching your money grow steadily. Upon deposit, your funds begin to accumulate at a consistent rate, ensuring a predictable and reliable growth trajectory. This financial tool allows customers to leverage their capital effectively and pursue their financial goals with confidence.

Pros Of Microcred (Baobab):

  1. Established Credibility: Boasting a substantial history and regulatory compliance, Microcred (Baobab) reinforces its legitimacy as a trusted financial institution.
  2. Comprehensive Financial Services: The institution offers a diverse range of financial services tailored to cater to the unique needs of micro-entrepreneurs and SMEs.
  3. Inclusive Microloans: Microcred (Baobab) extends accessible microloans to individuals who have limited or no access to traditional banking services.
  4. Flexible Loan Options: Borrowers benefit from flexible loan terms and competitive interest rates, enhancing financial adaptability.
  5. Branch Network: With a significant presence through 11 branches in Lagos and seven in Kaduna, Microcred (Baobab) provides physical accessibility to customers.
  6. Support for Micro-Entrepreneurs: The institution has disbursed substantial credit facilities, amounting to over N32 billion, to empower micro-entrepreneurs in Nigeria.

Cons Of Microcred (Baobab):

  1. Limited Documentation of Rebranding: The extent of rebranding and the precise changes in services following the transition from Microcred to Baobab have not been comprehensively documented, potentially leaving some customers uninformed. Considering the time since this rebranding occurred, it is possible that this issue has been addressed.
  2. Geographical Limitations: Microcred (Baobab) may have limited geographical coverage, potentially excluding customers residing outside of Lagos and Kaduna.

Microcred’s transformation into Baobab Microfinance Bank signifies its commitment to extending financial inclusion and support to micro-entrepreneurs and SMEs. With a diverse range of financial services, including accessible microloans and SME loans, the institution seeks to empower individuals who were previously underserved by traditional banking institutions. Baobab’s long-standing history, regulatory compliance, and extensive branch network in Lagos and Kaduna solidify its legitimacy and commitment to providing hassle-free financial services. However, customers should be aware of potential limitations in geographical coverage and seek detailed information regarding any changes in services resulting from the rebranding. For those within its reach, Baobab Microfinance Bank presents an enticing opportunity for financial growth and support.