LAPO USSD Code: How to Activate and Use it

“What is the LAPO USSD Code and how can you activate and use it ?”

That’s the question many people have on their lips since Lapo, a Microfinance bank, launched their USSD code to facilitate easy transaction on multiple services.

The Lapo USSD Code facilitates instant transactions for all Lapo Microfinance Bank customers. These transactions encompass loan procurement, repayment, savings account opening, and more.

An Unstructured Supplementary Service Data (USSD) code is a programmed code for mobile phones or SIM cards. It enables instant financial transactions without requiring a smartphone or internet connection.

Also Read: Faraja Loan: How to Borrow from Faraja

LAPO USSD Code

The Lapo USSD Code, *371#, empowers Lapo Microfinance Bank customers to repay loans, apply for new loans, and conduct various transactions.

To activate and use the LAPO USSD code, follow these steps:

Dial the USSD Code

• Open your mobile phone’s dialer and enter the code: *371#.

Follow the Prompts

• After dialing, you will receive a series of prompts. Follow these instructions to perform various transactions such as:
  • Applying for a loan
  • Repaying a loan
  • Opening a savings account
  • Checking your account balance

Register a Transaction PIN

If this is your first time using the USSD service, you may be prompted to register a 4-digit PIN for future transactions. Make sure to remember this PIN as it will be required for subsequent actions.

It’s important to understand that using the Lapo USSD Code incurs a charge of N6, as per the agreement between Nigerian regulators and telecommunications companies as of the time this article was written.

Also Read: Tala Loan Limit

Lapo Microfinance Bank Loan Types

Lapo Microfinance Bank offers a range of loan types with a nominal interest rate starting from 2.5% and above, as per information available on their website. It’s crucial to verify these details directly with the lender before proceeding with any loan applications to prevent potential issues.

The bank provides loans ranging from N10,000 to 5 million for various purposes such as ordinary consumption, Small and Medium Enterprises (SMEs), projects, assets, buildings, and more. Here are the types of loans offered by Lapo Microfinance Bank:

Small and Medium Enterprises (SME) Loan

Small and medium businesses can access up to N5 million in loans or credit facilities to expand their operations. It’s important to note that SME loans are applicable across all sectors but are specifically tailored to support small businesses in Nigeria. Larger enterprises with greater capital requirements should explore other loan categories.

Loan(SMEs) Features:

• Loan Amount: Up to N5,000,000
• Methodology: Individual
• Duration: 12 months

SMEs Loan Benefits:

• No collateral required
• Access to funds for business expansion
• Flexible repayment structure
• Training in basic financial management, business planning, and customer relations
• Expert financial advice is available

SMEs Loan Documentation:

• Loan application letter
• Completed application form
• 2 guarantors
• Valid ID (national ID, driver’s license, voter’s card, or international passport)
• Current utility bill
• 4 recent passport-size photographs

Agricultural Loan

Lapo Microfinance Bank also offers Agricultural financing, catering to farmers across Nigeria who require loans ranging from N30,000 to N1,000,000.

Features:

• Loan Range: N50,000 (minimum) to N500,000 (maximum)
• Methodology: Individual, group, and corporate
• Duration: 1-12 months
• Grace Period: 30-60 days

Prospective clients must be practicing farmers with verifiable evidence of existing farm investments to qualify for this loan.

Benefits:

• No collateral required
• Capital for farming activities
• Flexible repayment structure
• Low-interest rates
• Expert financial advice available

Documentation:

• Completed application form
• 2 guarantors
• 2 recent passport-size photographs
• Current utility bill
• Valid ID (national ID, driver’s license, voter’s card, or international passport)

Regular Loan

The Regular Loan product operates under a group (union) methodology, where a self-selected group of individuals accesses loans individually with group guarantees. It aims to support clients running small businesses by fulfilling their working capital needs.

Features:

• Loan Range: N30,000 (minimum) to N150,000 (maximum)
• Methodology: Individual lending with group liability
• Duration: 8 months
• Grace Period: 2 weeks
• Repayment Frequency: Weekly
• Clients must be part of a union

Benefits:

• No collateral required
• Access to funds for business expansion
• Access to other business loan products like Mid-term and Asset loans to strengthen enterprises
• Flexible repayment structure
• Training in basic financial management, business planning, and customer relations
• Low-interest rates
• Expert financial advice available

Documentation:

• Completed application form
• 2 guarantors
• 2 recent passport-size photographs
• Current electricity bill
• Valid ID (national ID, driver’s license, voter’s card, or international passport)

Also Read: Payday Loan Business: Find out How Payday Loan Works

FAQs about Lapo USSD Code and Microfinance Bank Loans

1. What types of loans does Lapo Microfinance Bank offer?
   Lapo Microfinance Bank offers a variety of loans, including Small and Medium Enterprises (SME) loans, agricultural loans, and regular loans.
2. What are the features of Lapo Microfinance Bank’s SME loans?
   The features of SME loans include a facility amount of up to N5,000,000, individual methodology, a duration of 12 months, no collateral required, access to funds for business expansion, and expert financial advice.
3. How much can farmers access through Lapo Microfinance Bank’s agricultural financing?
   Farmers can access loans ranging from N30,000 to N1,000,000 for agricultural activities.
4. What is the methodology for regular loans at Lapo Microfinance Bank?
   Regular loans operate on a group (union) methodology, where individuals access loans individually with group guarantees.
5. What are the benefits of Lapo Microfinance Bank’s loans?
   The benefits include no collateral required, flexible repayment structures, low-interest rates, access to funds for various purposes, and expert financial advice.
6. What documentation is required to apply for loans at Lapo Microfinance Bank?
   Required documentation typically includes a completed application form, guarantors, valid identification, recent photographs, and proof of address such as a current utility bill.

Conclusion

In conclusion, Lapo Microfinance Bank offers a diverse range of loan options tailored to meet the financial needs of individuals, small businesses, and farmers across Nigeria.

From SME loans supporting business expansion to agricultural financing empowering farmers, Lapo Microfinance Bank provides accessible and beneficial financial solutions. With features like no collateral, flexible repayment structures, and expert financial advice, clients can confidently navigate their financial goals with Lapo Microfinance Bank’s support.

Whether it’s enhancing business operations, investing in agricultural ventures, or addressing working capital needs, Lapo Microfinance Bank stands as a reliable partner in financial empowerment and growth.