LAPO Microfinance Bank Limited is one of the major microfinance banks in the country. The bank empowers low-income households by providing access to responsive financial services on a sustainable basis.
Initially, LAPO bank was established in 1987, as a Non-Governmental Organization (NGO) by Godwin Ehigiamusoe in response to the effects of the implementation of the Structural Adjustment Programme (SAP) in 1986.
In 2010, LAPO MfB was approved by the Central Bank of Nigeria (CBN) to operate as a state microfinance bank and in 2012. Over the last decade, the bank has grown to become one of the leading financial institutions in the country.
LAPO Microfinance Bank: How It Works
The head office of LAPO MfB is located at LAPO Place, 18, Dawson Road, Benin City, Edo State, Nigeria, West Africa.
The bank also has an office in Lagos located at Irorun Plaza, 2nd Floor, Kudirat Abiola Way, Oregun, Ikeja, Lagos State.
In the post, we take a look at some of the services offered by LAPO Microfinance Bank and how you can access it.
Let’s get started.
1. Regular loan
This type of loan is designed for entrepreneurs. Any new business can receive some capital to support or to start an enterprise and the deadline to pay back is 32 weeks. In order to pay back, you’re expected to pay a part of the loan every week.
The minimum amount you can borrow is N30,000 while the maximum is N150,000. Typically, there are 2 weeks of grace period for repayment. This loan is available to those who belong to a trade union.
You are expected to provide the following documents before you can access the loan. These include
- Duly completed application form (2 guarantors are required)
- Two recent passport type photos
- Current electricity bill
- Your ID
2. SME loan
This loan type is used to support small or medium scale business. The loan program can give you up to N5,000,000 and the loan term is 12 months.
The requirements for this loan include:
- Loan application letter
- Current utility bill
- Duly completed application form (2 guarantors are required)
- Your ID
- Four passport-type photo
3. Small Business loan
If you’re looking for funds for development, you can go for the small business loan. The minimum amount for this loan is N50,000 while the maximum is N500,000
4. Individual loan
The term of the individual loan is 1-12 months and the requirements include:
- Loan application letter (2 guarantors are required)
- Duly completed application form
- Your ID
- Four recent passport-type photos
- Current utility bill
5. Festival loan
The festival loan is designed for entrepreneurs who want to sustain their enterprises during the festive period. The minimum you can borrow is N50,000 while the maximum is N250,000. The term of the loan is 4 months.
The requirements include
- Duly completed application form
- An application letter (2 guarantors)
- Two recent passport-type photos
- Current utility bill
- Your ID
6. Lapo Agric loan
This is a special loan for farmers or those who want to develop a business in a rural area. The schedule of repaying the loan is dependent on the factors affecting the farming cycle. The minimum you can borrow is N50,000 while the maximum is N500,000.
The loan is available for Individuals, and groups and the term of the loan are 1 to 12 months. It is available to only practicing farmers.
The loan requirements include:
- Duly completed application form (2 guarantors)
- Two recent passport-type photos
- Current utility bill
- Your ID
7. Asset loan
The asset loan is designed for those who want to invest assets and generate some income. The minimum you can borrow is N20,000, while the maximum is N400,000. The loan is available for individuals and groups and the loan term is 11 months.
The requirements include:
- Savings account with LAPO MfB
- Duly completed application form (2 guarantors)
- Two recent passport-type photos
- Current utility bill ID
8. Education loan
The education loan covers all the expenses of studying usually in Primary and Secondary schools. The minimum you can borrow is N15,000 while the maximum is N40,000. The term of the loan is eight months.
The requirements include:
- Loan application letter
- Duly completed application form (2 Guarantors needed)
- Your ID
- Current utility bill
- Four recent passport-type photos
9. Overdraft loan
This loan is designed for a householder or those with business needs. It is useful, especially in an emergency situation. The maximum amount is N500,000. The term of the loan 1-90 days
The requirements include:
- Loan application letter
- Duly completed application form (2 guarantors needed)
- Your ID card
- Current utility bill
- Four recent passport-type photos
10. Special loan
If you have paid back any of the aforementioned loan, you can apply for the special loan. The minimum you can borrow is N50,000 while the maximum is N250,000 and the term of the loan is six months.
The requirements include:
- Duly completed application form (2 guarantors needed)
- Two recent passport-type photos
- Current utility bill ID
In general, before you apply for any of these loans, it is important that you’re sure of what you need so that you apply appropriately.
11. SME loan
SME Loan is designed for support Small and Medium Scale Enterprises (SMEs) operators in Nigeria irrespective of the sector in which they operate. LAPO MfB can provide a credit facility of up to N5,000,000 to expand your business.
The duration of this loan is 12 months and the benefits include;
- No collateral
- Access to funds for your business expansion
- Flexible repayment structure
- Basic training on financial management, business planning and customer relations
- Top notch financial advice available when you need it
Other services offered by LAPO MfB include:
-
Agent Banking
LAPO Microfinance partners with the Nigerian Postal Service (NIPOST) to enhance inclusive growth by extending financial services to Nigerians and support the financial inclusion campaign of the Central Bank of Nigeria.
The agent banking platform includes 75 NIPOST locations which cater to potential and existing clients in rural areas.
-
BRANCHLITE initiative
BRANCHLITE is a simple and convenient solution that enables Client Support Officers (CSOs) post field transactions directly to CBS. This means that CSOs no longer have to print field Collection Sheets to union meetings since they can now use their tablet which contains an electronic version of Collection Sheets.