LAPO Microfinance Bank is a microlending institution that provides loans and other financial services to empower individuals, communities and small businesses that are underserved and otherwise deemed not credit-worthy.
This article explores LAPO loan services and how each of these solutions is helping to fuel business success. We will examine popular offerings like Small & Medium Enterprise (SME) Loans, Agricultural Loans and Regular Loans, analyzing features, eligibility requirements and success stories. We will also take an in-depth look at other loans offered by LAPO such as the Education Loan and SUFEN (Supporting Female Entrepreneurs) Loan, highlighting their social impact.
By exploring the loan application process and approval criteria, this guide aims to educate entrepreneurs and individuals on LAPO loan services and how they can be able to access them easily.
How To Apply For A LAPO Loan
Accessing financing from LAPO Microfinance Bank one of the top 10 microfinance banks in Nigeria, starts with submitting a loan application. The process is designed to be straightforward while carefully evaluating each request. Applying only takes a few simple steps, which we will outline below:
- Check Eligibility: Before applying, ensure you meet the eligibility criteria for the specific loan product you are interested in, such as SME loans, agriculture loans, or education loans.
- Gather Documents: Collect necessary documents, including personal identification (national ID, driver’s license, voter’s card, or international passport), proof of income or business (such as payslips, bank statements, or business registration documents), and utility bills. Some loans may require additional documents like guarantors, business plans, or evidence of agricultural activities.
- Fill Out Application: Obtain and complete the loan application form, either by visiting a LAPO Microfinance Bank branch or through online submission for certain loan types. Ensure all information provided is accurate and complete.
- Submit Application: After filling out the form and attaching all necessary documents, submit your application to a LAPO branch. Some loans may allow for online submission. LAPO will then process your application, which may involve a credit check, document verification, and possibly a visit to your business or home for assessment.
- Approval and Disbursement: If your loan application is approved, LAPO will inform you about the terms of the loan, including interest rates, repayment schedules, and other relevant details. Upon acceptance of these terms, the loan amount will be disbursed to your account. Adhere to the agreed repayment schedule. For certain loans, such as the Public Sector Personal Loan, repayments may be deducted from your salary.
LAPO SME Loan
LAPO Microfinance Bank offers the SME Loan, a financing solution tailored specifically to support growing businesses.
The SME Loan provides loan amounts of up to ₦5,000,000 to entrepreneurs operating in various sectors including trading, manufacturing, services and more. The facility has a flexible duration of 12 months, allowing borrowers adequate time to utilize the funds and repay from increased business cashflows.
Importantly, the SME Loan does not require collateral, removing a major hurdle that often prevents SMEs from accessing bank loans. LAPO understands that many growing businesses do not have landed assets, yet they deserve access to capital that can help take them to the next level.
In addition to funds for working capital or asset acquisition, SME Loan clients benefit from LAPO’s business development support services. These include training in financial management, business planning, customer relations and more. Entrepreneurs also receive expert advice from LAPO officers to help strengthen their operations.
To apply for the SME Loan, businesses need to submit a loan application letter, a completed form, two guarantors and valid identification documents. Current utility bills and recent passport photos are also required. The process aims to be straightforward and efficient to get capital into the hands of SMEs fast.
LAPO Agricultural Loan
Agriculture is the backbone of Nigeria’s economy, with over 70% of rural households dependent on farming and livestock rearing for their livelihoods. Recognizing this, LAPO Microfinance Bank provides the Agricultural Loan to support those involved in primary production.
With loan amounts ranging from ₦50,000 to ₦500,000 and tenors of 1-12 months, the Agricultural Loan enables farmers to invest in inputs, equipment, livestock and other assets vital for agricultural activities. A grace period of 30-60 days is also provided.
Eligible applicants include individual farmers as well as cooperatives and corporate farms. They must present evidence of existing farm investments to qualify. Importantly, no collateral is required, opening access to financing for those unable to provide landed assets.
In addition to capital, beneficiaries gain from LAPO’s agricultural expertise. Officers provide guidance on modern farming techniques, market linkages, insurance and more. This helps farmers boost yields, and income and build sustainable enterprises.
To apply, clients submit a completed form, identification documents and contact details of two guarantors. The process aims to be fast-tracked to ensure funds are disbursed during planting seasons.
By providing the means to invest and expand operations, LAPO is helping cultivate prosperity across rural Nigeria. The future looks bright for those with access to innovative products like the Agricultural Loan.
LAPO Asset Loan
LAPO Microfinance Bank’s Asset Loan is designed to assist existing clients in purchasing assets such as generators, refrigerators, grinding machines, and more to enhance the productivity of their enterprises. The loan features a facility range from N20,000 (minimum) to N400,000 (maximum) and operates under both individual and group methodologies. With a duration of 11 months and a grace period of 1 month, this loan offers quick access to funds for the purchase of business assets, a flexible repayment structure, low-interest rates, and expert financial advice.
Additionally, it requires minimal documentation, including a savings account with LAPO MfB, a completed application form, 2 guarantors, 2 recent passport-size photographs, a current utility bill, and a valid means of ID (national ID, driver’s license, voter’s card, or international passport).
In addition to the Asset Loan, LAPO Microfinance Bank offers other specialized loan products to cater to the diverse needs of its clients. The SME Loan is specifically designed to support Small and medium-scale enterprises (SME) operators in Nigeria, providing them with the financial assistance they need to grow their businesses. The Agricultural Loan is tailored to support the agricultural sector, recognizing its importance in the socio-economic development of the nation. Furthermore, the Special Loan product is available to meet the credit needs of existing regular loan clients who require larger loan sizes to strengthen their businesses.
LAPO Microfinance Bank also provides premium customer support, offering personalized services, long-term business financial planning, extended-hours access to specialized business service teams, and the convenience of a combined monthly statement for all business accounts.
LAPO Special Loan
The LAPO Special Loan product is specifically designed to meet the credit needs of existing regular loan clients who require larger loan sizes to strengthen their businesses. This loan was developed to accommodate the expansion of business activities for regular loan clients, providing them with higher loan amounts to sustain and grow their enterprises. The Special Loan product also offers a monthly loan repayment frequency, which is more convenient for these clients as their businesses expand.
The Special Loan features a facility range from N50,000 (minimum) to N250,000 (maximum) and operates under a group methodology. It has a duration of 6 months and a grace period of 1 month. The benefits of this loan include no collateral requirement, access to higher loan amounts, training in basic financial management, business planning, and customer relations, a flexible repayment structure, low-interest rates, and expert financial advice.
To apply for the Special Loan, clients must have demonstrated excellent repayment performance while accessing the Regular Loan. The required documentation includes a duly completed application form, 2 guarantors, 2 recent passport-size photographs, a current utility bill, and a valid means of ID (national ID, driver’s license, voter’s card, or international passport).
LAPO Microfinance Bank also provides premium customer support, offering personalized services, long-term business financial planning, extended-hours access to specialized business service teams, and the convenience of a combined monthly statement for all business accounts.
LAPO Educational loan
LAPO Microfinance Bank offers an Education Finance Loan tailored to support parents in meeting education expenses for their children and to assist educational institution owners in enhancing their facilities. This loan product is designed to protect the cash flow of clients’ businesses and is accessible to clients who are members of a group (Union).
The Education Finance Loan comprises two main product offerings. The School Fees Loan, with a range from NGN 20,000 to NGN 200,000 and a grace period of 1 Month Moratorium, is aimed at economically active parents or guardians who seek to educate their children in private schools. This product is specifically designed to bridge the gap between the financial needs of the child and what the parent can afford in terms of school fees, uniforms, books, and transportation (school bus). The interest rate for this loan is 4% Reducing Balance (48% per Annum Reducing Balance), and the repayment mode is monthly.
Additionally, the School Improvement Loan, ranging from NGN 250,000 to NGN 10,000,000, offers a grace period of 3 to 18 months. This loan is targeted at proprietors of low or medium-income private schools, from Nursery to Secondary level, to enhance their schools in terms of increased learner enrollment and quality education. It is structured around the classification of school needs such as working capital, building improvement/renovation, and procurement of fixed assets that enhance learning. The interest rate for this loan is 4% Reducing Balance (48% per Annum Reducing Balance), and the repayment mode is termly, according to the school’s cash flow.
The Education Finance Loan features a facility range of N20,000 to N200,000 (maximum) and operates on a group methodology with a duration of 8 months and a grace period of 1 month. It offers benefits such as no collateral requirement, a flexible repayment structure, and a low-interest rate. The documentation required for this loan includes a loan application letter, a completed application form, 2 guarantors, a valid means of ID, a current utility bill, and passport-size photographs.
This loan product provides a convenient and accessible way for parents and educational institutions to meet their financial needs related to education, ensuring that children have access to quality education and that educational institutions can enhance their facilities for improved learning experiences.
LAPO Public Sector Personal Loan
The Public Sector Personal Loan is designed to provide personal loans to Civil Servants at the State and Federal levels through Payroll Lending. This loan product is deduction-based, with repayments deducted at source before salary payments are made to the borrowers. The acquisition of LAPO’s PS Salary Access Deduction Code ensures the guaranteed monthly repayment of the loan.
The features of the Public Sector Personal Loan include a facility range from NGN 20,000 to 3,000,000, an individual methodology, and a duration of 1 to 12 months. No personal guarantor is required for this loan, and the client must be a Civil Servant under a State or Federal Government establishment.
The benefits of this loan product include no collateral requirement, no bank account opening required (as it is a Payroll Lending), training on basic financial management, business planning, and customer relations, a flexible repayment structure, a low-interest rate of 2.95% flat monthly, and the provision of quick loans within 6 hours.
To apply for the Public Sector Personal Loan, clients must submit a duly completed application form, have at least two years left in public service, provide 2 recent passport-size photographs, the last three months’ pay slip, the last three months’ bank statement, and a valid means of ID (national ID, driver’s license, voter’s card, or international passport).
SUFEN Loan
The SUFEN (Supporting Female Entrepreneurs) Loan is a program designed to empower women financially. Recognizing that female entrepreneurs face additional challenges in accessing capital, LAPO created SUFEN to support business ownership and self-sufficiency among women.
Through this loan, female entrepreneurs can obtain startup or working capital for their businesses with flexible repayment terms. Loan amounts range from 50,000 to 500,000 Naira, with interest rates lower than typical consumer loans.
Features Of LAPO Loans
These features below collectively make LAPO loans a viable and attractive option for individuals and businesses seeking financial assistance.
- Flexible Repayment Structure: LAPO loans offer flexible repayment options tailored to suit the individual needs of borrowers.
- No Collateral Required: Many LAPO loan products do not require collateral, making them accessible to a wider range of customers.
- Competitive Interest Rates: LAPO offers competitive interest rates on its loan products, ensuring affordability for borrowers.
- Diverse Loan Products: LAPO provides a variety of loan options, including SME loans, agriculture loans, education loans, and more, to cater to different customer needs.
- Convenient Application Process: Customers can apply for LAPO loans through various channels, including USSD codes, online platforms, and physical branches, making the application process convenient.
- Quick Disbursement: Upon approval, LAPO ensures quick disbursement of loan funds to successful applicants, allowing for timely access to financial support.
Requirements to Borrow Money From LAPO
Before you can borrow money from LAPO, you must meet the following requirements. The requirements are here below:
- You must be a citizen of Nigeria
- You must have a bank account that is open and linked to your BVN
- You must have good credits before you reach the age of 18.
- Have a real and sure source of income.
Documentations To Borrow Money From Lapo
Here below are the documents to borrow money from LAPO. Note, that the documentation is different from the requirements we listed before. This one is the documentation you need which will be listed below.
- Duly completed application form.
- Two guarantors.
- Two recent passport-size photographs.
- Current electricity bill.
- A valid ID card, driver’s license, and voter’s card for an international passport.
How Much Can LAPO Borrow You
Lapo can borrow up to N5,000,000 or more from customers based on the results of its customer assessment.
Basically, the higher your net worth and income source as an individual or customer, the larger the loan they are willing to give you.
LAPO Loan Interest Rate
The interest rates for LAPO loans can vary depending on the type of loan and the specific terms of the loan agreement. For loans accessed through the LAPO USSD Loan code (*371#), the interest rates can range from 2% to 25% of the requested sum.
It’s important to note that these rates are subject to change and may vary based on the loan amount, tenure, and other factors.
How To Repay Your Loans
The network (SIM) you used to obtain the loan is linked to your bank, so you do not need to worry about repaying it. This means that the loan will be deducted from your bank account instinctively on the due date. All you have to do is ensure that your bank account has enough money in it.
Conclusion
LAPO Microfinance Bank provides a wide range of loan products designed to meet the financial needs of individuals and businesses. With flexible repayment options, competitive interest rates, and convenient application processes, LAPO offers accessible and timely financial support.
By meeting the requirements and providing the required documentation, customers can access various loan options, including educational, agricultural, and public-sector personal loans. The bank’s commitment to quick disbursement and the use of innovative technologies, such as USSD loan codes, ensures a seamless borrowing experience for its customers.