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Update on LAPO Loans: How to Apply, Eligibility Requirements and Loan Packages

By Oluchukwu Ikemefuna

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Lapo Loans – Lapo Microfinance, headquartered in Benin City, Edo State, with a branch in Lagos State, is a national financial institution dedicated to poverty reduction through a pro-poor movement. This movement empowers low-income individuals socially and economically by providing them with accessible and sustainable financial services.

Overview of Lapo and its Loan Products

Lift Above Poverty Organization (LAPO) originated in the late 1980s as a non-governmental organization dedicated to providing services that uplift individuals from the middle or low-class levels, enabling them to achieve financial stability.

Lapo loans

In 2010, the organization obtained a microfinance bank license, marking its transition into a microfinance bank. Today, Lapo stands as one of Nigeria’s leading microfinance banks.

Throughout its 25-year journey, Lapo has played a pivotal role in revitalizing struggling businesses and empowering entrepreneurs to elevate their enterprises to higher levels of efficiency and productivity. This support has enabled them to offer improved services to society effectively.

Lapo Microfinance Bank operates branches across 25+ states in Nigeria, showcasing its widespread presence and impact. The bank’s commitment to financial inclusion was recognized when it received the Most Financially Inclusive Bank Award in December 2022.

This track record highlights Lapo Microfinance Bank’s resilience in assisting both existing customers and potential clients through its diverse range of loan products.

One of Lapo’s key offerings is unsecured loans, with amounts reaching up to NGN 500,000 for small businesses and NGN 5,000,000 for small and medium-scale enterprises.

Microfinance lending fills the gap for those who lack access to traditional financial services like banks. These loans target individuals previously deemed “unbankable” by larger banking institutions, such as those operating with small daily sums, residing in remote areas, lacking credit histories, or not meeting traditional banking requirements.

It’s essential to note that microfinance loans should not perpetuate cycles of debt or dependency. Taking out a loan to repay another loan is strongly discouraged.

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

Types of Lapo Loans and Products

Lapo Microfinance Bank, renowned for its organized structure and impactful support in business growth, offers a variety of loan products that have significantly contributed to the expansion of many businesses.

Lapo Asset Loan

One of these essential loan products is the Lapo Asset Loan. Designed to assist Lapo’s customers in acquiring business assets, this loan aims to enhance operational efficiency, leading to increased income generation.

The assets eligible for financing under the Lapo Asset Loan include generating sets, refrigerators, grinding machines, delivery vehicles, and more.

Key features of the Lapo Asset Loan:

  • Loan Amount: Ranging from NGN 20,000 to NGN 400,000.
  • Loan Duration: 11 months with a grace period of 1 month.

This loan product plays a crucial role in empowering businesses by providing them with the necessary tools to improve their productivity and revenue streams.

See also: Tala Loan app: How to Apply for a Loan

Asset Loans Requirements

To obtain the Lapo Asset Loan product, applicants must fulfill the following requirements:

  1. Provide two guarantors.
  2. Maintain a savings account with Lapo Microfinance Bank.
  3. Complete the loan application processes.
  4. Submit two recent passport photographs.
  5. Provide a current utility bill as proof of address.
  6. Present a valid means of identification, such as a Voter’s card, Driving license, or other acceptable forms of ID.

Lapo Education Loan

The Lapo Education Loan is designed to enhance the quality of education by assisting parents and guardians in meeting their children’s tuition fees. Additionally, owners of schools and educational institutions can also benefit from this loan product.

The educational loan product is further categorized into two types:

  1. School Fee Loan:
  • Targeted at working parents and guardians who aspire to enroll their children or wards in private schools.
  • Loan Amount: Ranges from NGN 20,000 to NGN 200,000.

School Fees Loan Requirements

To apply for the Lapo School Fee Loan product, applicants must meet the following requirements:

  1. Obtain Two Guarantors.
  2. Complete the loan application processes.
  3. Submit four recent passport photographs.
  4. Provide a valid means of identification.
  5. The application must be made by a parent or guardian.
  6. Include the name of the beneficiary.
  7. Specify the name of the beneficiary’s school.

Also Read: Tala Loan Limit

School Improvement Loan

The School Improvement Loan offered by Lapo Microfinance Bank is designed to empower school owners to enhance the quality of their teaching facilities.

Key features of the Lapo School Improvement Loan include:

  • Loan Amount: Ranging from NGN 250,000 to NGN 1,000,000.
  • Grace Period: Varies between 3 and 18 months, depending on the loan amount.

School Improvement Loan Requirements

To obtain the Lapo School Improvement Loan, follow these requirements:

  1. Write an application letter addressed to Lapo Microfinance Bank, requesting the School Improvement Loan product.
  2. Complete the loan application processes as specified by Lapo Microfinance Bank.
  3. Obtain two guarantors who can vouch for your ability to repay the loan.
  4. Provide a valid means of identification, such as a National ID, Driver’s License, or International Passport.
  5. Submit your current utility bill as proof of address.

Lapo Public Sector Loan

The Lapo Public Sector Loan is exclusively designed for civil servants working at both the Federal and State levels. This loan can be accessed through Lapo Microfinance Bank’s Payroll Lending Structure, where repayments are automatically deducted from the customer’s salary account before disbursement.

Key features of the Lapo Public Sector Loan:

  • No requirement for a guarantor.
  • Loan Amount: Ranging from NGN 20,000 to NGN 3,000,000.
  • Loan Duration: 1 to 12 months.

Lapo Agric Loan Product

The Lapo Agric Loan product is tailored to support farmers by providing loans to enhance their farming operations. It is specifically designed for farmers looking to expand their agricultural businesses.

Through this product, farmers can access funds to acquire additional seedlings, fertilizers, and machinery, leading to improved farm produce. The loan amount for the Lapo Agric Loan ranges from NGN 300,000 to NGN 1,000,000.

Key features of the Lapo Agric Loan Product:

  • Loan Duration: 12 months.
  • Grace Period: Minimum of 1 month and maximum of 2 months.

Lapo Agric Loan Requirements

To apply for the Lapo Agric Loan, applicants must meet the following requirements:

  1. Be a practicing farmer.
  2. Provide two copies of photographic passport photographs.
  3. Complete the loan application processes as specified by Lapo Microfinance Bank.
  4. Obtain two guarantors who can vouch for your ability to repay the loan.
  5. Provide a valid means of identification, such as a National ID, Driver’s License, or International Passport.
  6. Submit your current utility bill as proof of address.

Lapo Regular Loan Product

The Lapo Regular Loan product is designed for individuals who meet Lapo’s loan qualifications and are part of a group or union. In addition to other requirements, being in a group or union is necessary to access this loan product.

Key features of the Lapo Regular Loan Product:

  • Loan Amount: Ranging from NGN 30,000 to NGN 100,000.
  • Loan Duration: 8 months.
  • Grace Period: 14 days.

Lapo Regular Loan Requirements

To obtain the Lapo Regular Loan, you need to fulfill the following requirements:

  1. Provide two copies of photographic passport photographs.
  2. Complete the loan application processes as specified by Lapo Microfinance Bank.
  3. Obtain two guarantors who can vouch for your ability to repay the loan.
  4. Provide a valid means of identification, such as a National ID, Driver’s License, or International Passport.

Lapo Special Loan Products

Lapo Microfinance Bank offers special loan products for its regular customers, aimed at boosting their businesses. These special loans provide larger amounts compared to standard loans. The Lapo Special Loan product ranges from NGN 50,000 to NGN 250,000.

Lapo Special Loan Requirements

To qualify for the Lapo Special Loan, you must meet the following requirements:

  1. Complete the loan application processes as specified by Lapo Microfinance Bank.
  2. Provide a valid means of identification, such as a National ID, Driver’s License, or International Passport.
  3. Submit your current utility bill as proof of address.
  4. Provide two copies of photographic passport photographs.
  5. Demonstrate a track record of timely repayment of previous loans.

Lapo Small Medium Scale Enterprise Loan Product (SME)

The Lapo SME Loan Product is tailored to support Small and Medium Scale Enterprises (SMEs) in expanding their businesses. Customers can obtain loans as high as NGN 5,000,000 under this product, with a loan duration of 12 months.

Lapo SME Loan Requirements

To qualify for the Lapo SME Loan, you need to fulfill the following requirements:

  1. Write an application letter addressed to Lapo Microfinance Bank requesting the loan.
  2. Complete the loan application processes as specified by Lapo Microfinance Bank.
  3. Provide a valid means of identification, such as a National ID, Driver’s License, or International Passport.
  4. Be at least 18 years old to access this loan.
  5. Submit four copies of photographic passport photographs.
  6. Provide details of your other bank accounts.
  7. Obtain two guarantors who can vouch for your ability to repay the loan.

Also Read: Update on Zenith Bank Virtual Card: How to Get Yours, Features and Requirements

Lapo Overdraft Loan Product

The Lapo Overdraft Loan Product is designed to cater to customers’ emergency financial needs, making it an ideal option for both enterprises and household emergencies. Customers can access loans of up to NGN 500,000 under this product, with a loan duration ranging from 1 to 12 weeks, and the grace period is negotiable.

Lapo Overdraft Loan Requirements

To obtain the Lapo Overdraft Loan, you must fulfill the following requirements:

  1. Provide two copies of photographic passport photographs.
  2. Complete the loan application processes as specified by Lapo Microfinance Bank.
  3. Obtain two guarantors who can vouch for your ability to repay the loan.
  4. Provide a valid means of identification, such as a National ID, Driver’s License, or International Passport.
  5. Submit your current utility bill as proof of address.

Lapo SUFEN Loan Product

The Lapo Support Female Entrepreneurs (SUFEN) Loan Product is specifically designed to support and empower female entrepreneurs. It aims to provide financial assistance tailored to the needs of female business owners.

FAQs: Lapo Loan Products and Services

  1. What types of loans does Lapo Microfinance Bank offer?
    Lapo Microfinance Bank offers a variety of loan products tailored to different needs, including Asset Loans, Education Loans, Agric Loans, Regular Loans, Special Loans, SME Loans, Overdraft Loans, and Support for Female Entrepreneurs (SUFEN) Loans.
  2. What are the eligibility criteria to obtain a loan from Lapo Microfinance Bank?
    The eligibility criteria may vary slightly depending on the loan product, but generally, applicants are required to provide valid means of identification, complete the loan application process, have guarantors (in some cases), and meet specific age requirements (e.g., being 18 years or older for certain loans).
  3. How long does it take to process a loan application with Lapo Microfinance Bank?
    The processing time for a loan application with Lapo Microfinance Bank can vary based on factors such as the type of loan, completeness of application documents, and verification processes. Typically, it can take anywhere from a few days to a couple of weeks.
  4. What are the interest rates and repayment terms for Lapo Microfinance Bank loans?
    Interest rates and repayment terms vary depending on the loan product. It’s important to consult directly with Lapo Microfinance Bank or refer to their official documentation for specific details regarding interest rates, loan amounts, repayment durations, and any applicable grace periods.
  5. Are there any special benefits or incentives for regular customers of Lapo Microfinance Bank?
    Yes, Lapo Microfinance Bank offers special loan products and benefits for regular customers, such as larger loan amounts, flexible repayment terms, and expedited processing for certain loan types. Regular customers may also enjoy priority access to new loan products and exclusive promotions.

Conclusion

In conclusion, Lapo Microfinance Bank stands as a beacon of financial empowerment, offering a diverse range of loan products tailored to meet the needs of various individuals and businesses. From small-scale farmers to aspiring entrepreneurs and established enterprises, Lapo’s commitment to providing accessible and affordable financial solutions has made a significant impact on the economic landscape.

Through innovative loan products like the Lapo Asset Loan, Education Loan, Agric Loan, SME Loan, and others, Lapo Microfinance Bank has facilitated growth, empowered communities, and contributed to the development of the Nigerian economy. The bank’s emphasis on inclusivity, flexibility, and customer-centricity has earned it recognition and trust among borrowers and stakeholders alike.

As Lapo continues to expand its reach and enhance its offerings, it remains dedicated to its mission of reducing poverty, promoting financial inclusion, and supporting the dreams and aspirations of individuals and businesses across Nigeria. Whether it’s helping a farmer expand their operations, enabling a student to access quality education, or supporting a female entrepreneur in realizing her business goals, Lapo Microfinance Bank continues to be a driving force for positive change and economic empowerment.

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Christian Maximilian
Christian Maximilian

I am a Software Engineer, technical writer, and overall tech enthusiast. For me, utilizing my skills as a Software Engineer to perform Technical Search Engine Optimization is not just a job, but something I gladly incorporate into my pastimes as well, and I have been doing this for over 3 years.

When I'm not coding or writing technical documentation, I enjoy listening to music and exploring new genres.

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