You might be familiar with the financial institution Lapo if you’re a Nigerian. Lapo Microfinance Bank is a well-known financial organization in Nigeria that provides quick loans to businesses and low-income earners. Please continue reading to learn about Lapo loans, their types, and how to apply for them.
Types of Lapo loans
SME loans
Both big and small businesses require loans. The LAPO Microfinance Bank “SME Loan” is a credit line designed specifically to support Small and Medium Scale Enterprises (SMEs) operators in Nigeria. Irrespective of your business sector, LAPO microfinance bank will support you with a credit facility of up to N5,000,000 to expand your enterprise. Nigerian SMEs can now optimize their potential with the SME Loan available (at a low-interest rate) to expand their businesses.
Features of SME loan
- You can get up to N5,000,000
- It is for Individuals
- Repay within 12 months.
Benefits of SME loans
- No collateral is required.
- Grants access to funds for business expansion
- Flexible repayment scheme
- Training on customer relations, basic financial management, business planning, and Expert financial advice available
Requirements for SME loans
- Loan application letter
- Duly completed application form
- Two guarantors
- A valid means of ID (NIN, driver’s license, voter’s card, or international passport)
- Recent utility bill
- 4 recent passport-size photographs
Regular LAPO loan
This loan service is designed for a group (union). A union is a self-selected group of individuals who access loans personally but have group guarantees. This type of loan is created to help meet the working capital needs of small business clients.
Features of regular loans
- Ranges from N30,000 to N150,000
- Individual lending but group liability
- 8 months repayment plan
- Weekly clients must belong to a union.
Benefits of regular loans
- You don’t need a collateral
- Create funds for business expansion
- Create business loan products to strengthen clients’ enterprise, e.g., Mid-term and Asset loans.
- Flexible repayment plan
- Provides training on basic financial management, customer relations, and business planning
- A low-interest rate on loans
- Expert financial advice is available
Documentation requirements
- Duly filled application form
- 2 guarantors
- 2 recent passport-size photographs
- Current utility bill
- A valid means of ID (national ID, driver’s license, international passport, and voters card)
Special loan
LAPO MFB Special loan package is developed to meet the credit needs of existing regular loan clients who need bigger loan sizes to expand their businesses. The development of this product is necessitated by the fact that after funding regular clients for some time, their business expands to the point where they need higher loans to sustain their business. These clients also require monthly loan repayment frequency as it is more convenient.
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Features of special loan
- Loan ranges from N50,000 to N250,000
- Available for individuals in a group
- 6 months repayment plan
- A grace period of 1 month
Benefits of special loans
- No collateral
- Access to more loans to fund your business enterprises
- Training in basic financial management and customer relations
- Flexible repayment structure
- Low-interest rate
- Expert financial advice is available
Documentation and requirements of special loans
- You must have had an excellent repayment record while receiving a Regular Loan
- Duly completed application form
- 2 guarantors
- 2 recent passport photographs
- Current utility bill
- A valid means of ID (NIN, driver’s license, voter’s card, or international passport).
Agricultural Loan
Agricultural financing is created to help farmers achieve better results by providing agricultural loans.
Features 0f agricultural loans
- Ranges from N50,000 to N500,000.
- Available for Individual, group, and corporate
- The repayment plan is between 1-12 months
- The grace period is between 30-60 days
- Applicants must be a practicing farmer with verifiable evidence of existing farm investments.
Benefits of agricultural loans
- No collateral
- Provides capital for farming activities
- Flexible repayment plan
- Low-interest rate on loans
- Expert financial advice is available
Documentation and requirements
- A duly completed application form
- 2 guarantors
- 2 recent passport-size photographs
- Current utility bill
- A valid means of Identification (national ID, driver’s license, voters card, or international passport)
Asset Lapo Loan
Asset loan, as the name implies, is targeted to help existing clients of LAPO purchase assets such as generators, grinding machines etc. that will further enhance the productivity of their business.
Features of asset loans
- Funds ranges from N20,000 to N400,000
- Available for Individual and group
- 11 months repayment plan
- A Grace period of 1 don’t
Benefits of asset loans
- No collateral
- Quick access to funds for purchasing business assets
- Flexible repayment structure
- Flexible repayment plan
- Low interest rate
- Expert financial advice available
Requirements and documentations
- You must have a savings account with LAPO MFB
- Duly completed application form
- 2 guarantors
- 2 recent passport-size photographs
- Current utility bill
- A valid means of identification (NIN, driver’s license, voter’s card or international passport)
Public sector Loan
The Public Sector Loan product provides personal loans through payroll lending to civil servants with regular employment and income.
SUFEN Lapo loan (Supporting Female Entrepreneurs)
The Lapo SUFEN Loan package is a unique product created specially to assist female entrepreneurs. In essence, this product provides loans to female business owners for their enterprises.
Education loan
These loans are provided to enhance the quality of education. It supports parents to meet education requirements for their kids and owners of educational institutions to enhance their facilities. Education loans are aimed at protecting the cash flow of clients’ businesses. This loan can be accessed by a client who is a member of a union group. Education Finance Loan is categorized into school fees loans and school improvement loans.
How to apply for a Lapo Loan
To apply for any type of loan from this microfinance bank, follow these steps:
- Visit the nearest Lapo branch around you.
- Request for a personal loan application form
- Lastly, fill out the application form given to you, attach the necessary documents to the completed form, and submit it.
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Final thoughts
Lapo loan products come in different varieties. In essence, each of these products is uniquely created to satisfy the requirements of the average person who can’t access bank loans. Also, they don’t demand collateral, which makes the application procedure simple. Be sure you have the necessary plans in place to pay back any loans you intend to ask for by the due date or earlier.
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