Calculate microfinance loan costs for Africa's top MFIs. See monthly repayments, effective APR, total interest, and how it compares to a bank loan.
15 CountriesTop MFI RatesFree
Microfinance Loan Calculator
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Bank Loan Total
vs Bank Loan
Microfinance rates of 2-4%/month = 27-60% APR. This is higher than bank rates but much lower than informal lenders. MFIs serve customers who cannot access bank credit — if you qualify for a bank loan, it will be cheaper.
Frequently Asked Questions
What is microfinance?
Microfinance provides financial services (loans, savings, insurance) to low-income individuals and small businesses excluded from traditional banking. African MFIs like LAPO (Nigeria), FINCA, and Opportunity Bank provide small business loans with shorter tenors and group-based lending models. The sector has over 50 million clients across Africa.
Why are microfinance rates so high?
MFI rates are higher than bank rates because: high administrative costs per small loan, no collateral (higher risk), rural/remote delivery costs, and loan officer costs for individual relationship management. Despite high nominal rates, MFIs serve millions who would otherwise pay 20-50%/month to informal lenders.
Can I get a microfinance loan without collateral?
Yes — most MFIs use group lending (you guarantee each other's loans) or character-based credit assessment rather than physical collateral. In group lending, 5-10 members guarantee each other. Individual microloans typically require a guarantor or small pledge. LAPO and FINCA are well known for collateral-free group loans.