Types Of LAPO Loan – Interest Rate and App Download

Buzorteam September 26, 2023

0 44 5 minutes read

Types Of LAPO Loan - Interest Rate and App Download

Do you know that LAPO Microfinance Bank provides you the opportunity to borrow money and allows you to pay back on amortization process, meaning that you’re allowed to pay back on a monthly installment method. I will tell you everything you need to know about this platform including types of LAPO loan, interest rate and app download.

LAPO Loan Overview?

Name: Live Above Poverty Organization (LAPO)
Founded: April 2007
Licensed By: Central Bank of Nigeria (CBN)
Website: www.lapo-nigeria.org
Sector: Financial Institution

LAPO Microfinance Bank is a loan lending organization that focus on lending funds to micro-entrepreneurs and low-income households. The platform is more suitable for earners and civil servants.

The organization was launched in 2007 and was licensed by the Central Bank of Nigeria in 2010 to operate as a regulated state microfinance bank and later become a National microfinance bank in 2012. The institution provides small and medium enterprise financial solution to help boost their businesses.

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How Does LAPO Loan works?

LAPO Loan provides small and medium enterprise, income earners and civil servants with financial opportunities. Businesses can borrow money in other to support their businesses and pay back on a monthly installment which is very impressive. LAPO offers wide range of loan product to various sectors of life to Nigerian residents. You can access the organization loan either by visiting the office address or through online procedures. LAPO offers Loan to individual that is between 18 years and above including students.

Types of LAPO Loan

LAPO microfinance Bank offers five (5) types of loans, you’re to choose base on your specific and purpose and meet the requirement before your request can be considered.

1. Regular Loan

This loan product is designed to operate on a group (union) methodology meaning that it’s meant for self-selected group of people who access loans individually, but have
group guarantees. Regular Loan is created to help meet the working
capital needs of clients that run small businesses.

Benefits

No collateral
Access to funds for business expansion
Access to other business loan products to strengthen client’s enterprise, e.g. Mid-term and Asset loan
Flexible repayment structure
Training on basic financial management, business planning and customer relations
Low interest rate
Expert financial advice available

Features

Facility range: N30,000 (minimum) to N150,000 (maximum)
Methodology: Individual lending but group liability
Duration: 8 months
Charitable Trusts
Grace period: 2 weeks
Repayment frequency: Weekly
Clients must belong to a union

Requirements

Duly completed application form
2 guarantors
2 recent passport-size photographs
Current electricity bill
A valid means of ID (national ID, driver’s license, voter’s card or international passport)

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2. SME Loan

LAPO SME Loan aids to support Small and Medium Scale Enterprises (SMEs) operators in Nigeria. this specific loan type is made for struggling SMEs in Nigeria. LAPO supports sector with a loan offer of up to ₦5,000,000.00 which is very lucrative so Small and Medium Business Enterprises can now apply for this loan offer.

Benefits

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

Features

Facility amount up to ₦5,000,000
Methodology: Individual
Duration: 12 months

Requirements

Loan application letter
Duly completed application form
2 guarantors
A valid means of ID (national ID, driver’s license, voter’s card or international passport)
Current utility bill
4 recent passport-size photographs

3. Agricultural Loan

This type of Loan is specifically made for farmers, the aim is help farmers achieve better results through the provision of agricultural loans. So struggling or farmers who needs financial solution at the moment can give this a tryout.

Benefits

No collateral
Provides capital for farming activities
Flexible repayment structure Low interest rate
Expert financial advice available

Features

Facility range: ₦50,000 (minimum) to ₦500,000 (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.

Requirements

Duly completed application form2 guarantors
2 recent passport-size photographs
Current utility bill
A valid means of ID (national ID, driver’s license, voter’s card or international passport)

Education Loan

loans made available to improve educational standards. It helps proprietors of educational institutions improve their facilities and parents pay for their children’s education. The purpose of an education loan is to safeguard the clients’ customers’ financial flow. Any client who belongs to the union can apply for this loan.

LAPO Education Finance Loans fall into one of two categories for product offerings;

i. School Fees Loan

This loan is specifically made to help enhance parent/guardian who wish to educate their children in private schools. This product is tailored to close the gap between the need of the child and what the parent can offer in regard to school fees/levies, uniforms, books and school bus fees.

ii. School Improvement Loan

The goal of the School Improvement Loan is to help owners of low- or middle-income private schools from nursery through secondary level develop their institutions in order to attract more students and provide higher-quality instruction.
The loan is set up according to how much money a school needs for things like operating capital, renovations and improvements to the facilities, and the purchase of fixed assets that promote teaching and learning.

To learn more about this loan click here to visit LAPO educational loan.

5. Special Loans

The LAPO MFB Special Loan Product was created to address the credit demands of current clients who already receive monthly loans but need larger loan amounts to grow their enterprises.

After providing regular loan clients with money for a while, their company operations grow to the point where they need larger loans to maintain their firm. This situation made the development of this product necessary. The monthly loan payback frequency is also required by these clients because it is more convenient for them.

Features

Facility range: ₦50,000 (minimum) to ₦250,000 (maximum)Methodology: Group
Duration: 6 months
Grace period: 1 month

Benefits

No collateral Access to a higher loan to fund your business enterprises
Training on basic financial management, business planning and customer relations
Flexible repayment structure
Low interest rate
Expert financial advice available

Requirements

You must have had an excellent repayment performance while accessing Regular Loan
Duly completed application form
2 guarantors
2 recent passport-size photographs
Current utility bill
A valid means of ID (national ID, driver’s license, voter’s card or international passport)

LAPO Loan Requirements

Before you can be able to access LAPO’s Loan, there are some requirements that must be met before you become eligible for LAPO Loan. Here are the requirements.

Be a Nigerian citizen and resident.
Be at least 18 years old.
Have a regular source of income.
Must have an active commercial bank account in Nigeria.
Must have a good credit score
Your bank statement must show a credible source of income for the past 30 days.
Be a member of a union or other group (for the Regular Loan).

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How to Apply For Loan Using LAPO USSD Code?

One of the easiest way to get loan from LAPO is via the USSD code. All you have to do is to dial *371# make sure that the line you’re using is attached to your bank account.

The maximum withdrawal to apply using this USSD code is ₦350,000.00. If you want anything more than that you have to visit the LAPO branch near you.

LAPO’s Loan Customer Care

For support and more details use the provided contact information to reach out LAPO customer care service;

Call Centre lines

Call: +(234) 813 984 0230
WhatsApp: 081 5055 3264
Email: info@lapo-nigeria.org

LAPO App Download

LAPO have mobile app available for both android and IOS users. The mobile app will enable to bank online with LAPO. To download the App use the link below;

LAPO Interest Rate

LAPO offers variety of loan products and each of these products has their own unique interest rate. Here is the full lists of LAPO loan interest rates;

Regular Loan – 2.95% per month
SME Loan – 3.25% per month
Agricultural Loan – 3.5% per month
Asset Loan – 3.75% per month
Education Loan – 4% per month
Public Sector Loan – 3% per month

Conclusion

It is safe to state that LAPO’s credit department is doing a great job given the absence of any collateral requirements, flexible payback schedules, and interest rates that are lower than anticipated.
However, several reports state that LAPO doesn’t deal well with loan defaulters; therefore, if you want to borrow money from them, make sure you have a solid repayment strategy in place.

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