As a small business owner in Nigeria, getting a loan can be difficult. If you approach the regular banks, there’s a high chance that these financial institutions will scare you with tough financial conditions. Besides, these banks might also require collateral or excess paperwork.
With the availability and proliferation of microfinance banks in Nigeria, relief has come to many people and businesses. These financial institutions focus on lending money to small businesses and even low-income households across the country.
Today, LAPO Microfinance Bank stands as one of the top money lenders in Nigeria. With its loan, it has helped several Nigerians to meet various financial needs.
Profile Summary of LAPO Microfinance Bank LTD
LAPO is an acronym for Lift Above Poverty Organisation. LAPO Microfinance Bank is a financial institution that provides financial services to low-income families and small businesses. Launched in the 80s by Godwin Ehigiamusoe PhD., the LAPO Microfinance Bank started its business as a non-government organization. But as time passed, the institution has grown into a national microfinance bank that serves over 5 million people across Nigeria and other countries.
What is LAPO Loan?
LAPO Loan is a money-lending service from LAPO Microfinance bank. Under this loan, you have the SME Loan that caters to people with small businesses. However, instead of offering the loans directly to individuals, it focuses on members of larger groups.
How Does LAPO Loan Work?
LAPO Loan provides loans to applicants without requesting collateral. Although most of its categories focus on small businesses, the service also meets the needs of households. After a successful application for any of the loans, the bank transfers the requested sum to any of the accounts.
Eligibility and Requirements for LAPO Loan
To qualify for the various LAPO loans, you will have to meet the following requirements:-
- Must belong to a trade union
- Must own a business
- Valid means of identification
- Current electricity bill
- Completed application form
- 2 guarantors
- 2 recent passport photographs
What is the Interest Rate for LAPO Loan?
The monthly interest rate on the SME LAPO loan falls between 0.75% to 6%. As for the annual interest rates, it reaches up to 60%.
Is LAPO Loan Good?
Generally, a LAPO loan has its benefits. For instance, the service offers non-collateral loans with flexible repayment plans. But getting a LAPO loan might be slightly difficult as it requires applicants to have guarantors and join trade unions. Moreover, some users accuse them of aggressive recovery practices.
How to Apply for LAPO Loan
To apply for the LAPO loan, visit any LAPO bank branch with the required documents. Then submit your application to the bank. If you are eligible, the bank will approve your request and send the specified loan.
How Long Does it Take to Process LAPO Loan?
The LAPO Loan is approved as soon as you meet the requirements of the bank.
How to Pay a LAPO Loan?
For most of the loans, you can pay them back by visiting a branch of the bank. If you are not sure of the right steps for repaying the loan, ask the customer service staff via email or phone call. As for the Public Sector loan, the bank deducts the borrowed amount from an applicant’s salary account.