Different Types of Lapo Loan – Everything you need to know About Lapo Loan can be accessed below.
Lapo Microfinance Bank is a well-known financial institution in Nigeria dedicated to providing instant loans to the underbanked population. They offer a range of loan products tailored to the diverse needs of businesses and low-income households. In this guide, we’ll delve into the various types of Lapo loan products and provide insights into their features and requirements.
An Overview of Lapo Loan
Established in April 2007 and licensed by the Central Bank of Nigeria, Lapo Microfinance Bank has grown to become a National Microfinance Bank with a vast network of over 500 branches. Their financial products cater to both businesses and low-income earners, aiming to empower individuals who may not have access to traditional banking services.
Types of Lapo Loan Products
Lapo offers nine distinct loan products to meet the financial needs of their diverse clientele:
1. SME Loan
Maximum Amount: N5,000,000
Loan Tenor: 12 months
The SME Loan is designed to provide financial support to Small and Medium Scale Enterprises (SMEs) in Nigeria, regardless of the sector they operate in.
Required Documents:
- Loan application letter
- Duly completed loan application form
- Two guarantors
- Valid means of ID (e.g., national ID, driver’s license, voter’s card, international passport)
- Current utility bill
- Four recent passport photographs
2. Agricultural Loan
Loan Amount Range: ₦30,000 – ₦1,000,000
Loan Tenor: 1-12 months (with a 30-60 day grace period)
The Agricultural Loan supports farmers by providing loans to enhance their farming activities. Applicants must demonstrate evidence of farm investments to qualify.
Required Documents:
- Duly completed application form
- Two recent passport-size photographs
- Two guarantors
- Valid means of ID
- Current utility bill
3. Regular Loan
Loan Amount Range: ₦30,000 – ₦150,000
Loan Tenor: 8 months (with a 2-week grace period)
The Regular Loan operates on a group (union) basis, where individuals have individual access to loans but with group guarantees. It caters to clients operating small businesses.
Required Documents:
- Duly completed loan application form
- Two recent passport photographs
- Two guarantors
- Recent electricity bill
- Valid means of ID
4. Asset Loan
Loan Amount Range: ₦20,000 – ₦400,000
Loan Tenor: 11 months (with a 1-month grace period)
The Asset Loan assists existing Lapo customers in purchasing assets such as refrigerators, generators, and grinding machines to improve their businesses’ productivity.
Required Documents:
- Savings account domiciled with Lapo MfB
- Duly completed loan application form
- Two guarantors
- Two recent passport photographs
- Current utility bill
- Valid means of ID
5. Education Loan
a. School Fees Loan: Loan Amount Range: ₦20,000 – ₦200,000
Grace Period: 1 month
Interest Rate: 4%
b. School Improvement Loan: Loan Amount Range: ₦250,000 – ₦10,000,000
Grace Period: 3-18 months
Interest Rate: 4%
The Education Loan package supports parents in meeting education expenses for their children and helps educational institutions improve their facilities.
Required Documents:
- Loan application letter
- Duly completed loan application form
- Two guarantors
- Valid means of identification
- Recent utility bill
- Four recent passport-size photographs
7. Special Loan
Loan Amount Range: ₦50,000 – ₦250,000
Loan Tenor: 6 months (with a 1-month grace period)
The Special Loan is designed to cater to regular Lapo loan customers who require larger loan amounts to boost their businesses. Eligibility depends on an outstanding repayment performance while accessing the Regular Loan product.
Required Documents:
- Duly completed application form
- Two recent passport-size photographs
- Current utility bill
- Two guarantors
- Valid means of ID
8. Public Sector Loan
The Public Sector Loan offers personal loans through payroll lending to steady income earners in the civil service.
9. SUFEN Loan (Supporting Female Entrepreneurs)
The SUFEN Loan is designed to support female entrepreneurs by providing loans for their businesses.
Bottom Line
Lapo Microfinance Bank offers a diverse range of loan products, each tailored to meet the needs of individuals who may not have access to traditional bank loans. These loans are collateral-free, simplifying the application process. When applying for any Lapo loan, ensure you plan adequately for timely repayment to benefit fully from these financial solutions.
