When it comes to loan, there are many choices you could go with. There’s the traditional bank loan, online loan lenders, and secured loan; the list goes on and on. Today, I want to talk about a loan option that might be just the thing for you: LAPO loan.
LAPO loan is designed to help individuals access quick and affordable financial assistance in times of need. Compared to traditional bank loan, LAPO loan come with much lower interest rates and fewer restrictions and can be applied for and processed quickly.
In this article, I will break down all the types of LAPO loan available and provide some tips so you can easily get your hands on one. So if you need financial assistance and want to get your money fast, read on to learn more!
Types of LAPO Loan
LAPO stands for “Lift Above Poverty Organization, LAPO loan is a type of loan that offers fast, easy and convenient access to credit for individuals and businesses. It was created to provide quick access to finance without the usual multiple layers of eligibility and documentation checks associated with other types of loan.
To help both individuals and groups, LAPO Microfinance Bank offers a variety of direct lending options. The asset-based lending option is one of LAPO’s many specialised loan services. You’ll probably receive competitive interest rates if you apply for a LAPO loan.
LAPO is one of the biggest loan companies in Nigeria, with a customer base of over 3 million people.
Anyone can visit any of LAPO’s more than 500 operating branches, which are dispersed around the nation.
You can apply for some of the loan online and most offline, making it easily accessible for all kinds of borrowers. The interest rate for LAPO loan is competitive compared to traditional loan from banks and other lenders in the market.
Here are the types of LAPO loan available, their features and their requirements:
LAPO Asset Loan
To assist customers in buying assets like generators, solar, sewing machines, refrigerators, grinding machines, welding machines etc., LAPO Microfinance Bank has aimed its LAPO Asset Financing program at its existing clients.
The Features of this Loan include the following:
- Loan amounts: N20,000 – N400,000
- Loan Type: Individual and group
- Loan Duration: 11 months
- Grace period: 1 month
- Flexible repayment structure
- No collateral
- Low-interest rate
To get the LAPO Asset Loan, here are the Requirements:
- A valid means of ID (national ID, driver’s license, voter’s card or international passport)
- 2 guarantors
- Savings account with LAPO MfB
- Duly completed application form
- 2 recent passport-size photographs
- Current utility bill
Once you have met the LAPO Asset Loan requirements, you can apply for your loan.
LAPO Regular Loan (Personal Loan)
A loan product specifically designed to function in a group (union) mode is the regular loan offered by LAPO Microfinance Bank. The LAPO loan is, therefore, only available to union members.
Those in unions with self-selected members can receive loan with the group’s guarantees. The LAPO Regular loan is intended for borrowers that require working capital to operate their small enterprises.
The Features of this Loan include the following:
- Loan amount: N30,000 (minimum) to N150,000 (maximum)
- Type: Individual lending but group liability
- Loan Duration: 8 months
- Grace period: 2 weeks
- Repayment frequency: Weekly
- No collateral
- Flexible repayment structure
To get the LAPO Regular Loan, here are the 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)
Once all the requirements have been submitted, you can then apply.
LAPO SME Loan
Doing business without enough capital can be quite challenging. But luckily, there are different types of loan you can access to aid your business, one of them being the LAPO SME Loan.
The LAPO SME Loan offers you access to finance to help grow and scale your business. The loan amount is between NGN 5,000,000 and NGN 10 million, with no collateral needed. You can get the loan fast and enjoy a flexible repayment tenor.
The Features of this Loan include the following:
- Loan Amount: N5,000,000 – N10,000,000
- Loan Type: Individual
- Loan Duration: 12 months
- No collateral
- Flexible repayment structure
To get the LAPO SME Loan, here are the Requirements:
- You must be at least 18 years of age to apply for this loan.
- A Commercial bank account details. This account will be credited with the requested loan amount when your loan is approved.
- 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
You can apply for the LAPO SME Loan if you meet all these requirements.
LAPO Agric Loan
What is a LAPO Agric loan? It’s an agriculture loan designed to help farmers and agro-producers get good working capital for their businesses. This loan helps them purchase farm inputs, pay for labor and manage cash flow, so they can grow the quality of their produce and expand the scope of their production.
The Features of this Loan include the following:
- Loan size: ₦30,000- ₦1,000,000
- Loan Type: Individual, group and corporate
- Loan Duration: 1-12 months
- Grace period: 30-60 days
- Loan applicants must be practising farmers with verifiable evidence of existing farm investments.
- No collateral
- Provides capital for farming activities
- Flexible repayment structure
- Low-interest rate
To get the LAPO Agric Loan, here are the Requirements:
- 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)
After submitting your documents, it usually takes about two weeks for your application to be processed and for you to receive an approval or denial decision. Once approved, you can get up to N1 million in working capital, depending on your needs and credit level. A LAPO Agric loan provides fast access to funds, which could be a lifesaver if you’re looking for ways to bolster your farming business cost-effectively!
LAPO Educational Loan
Are you looking for an educational loan to cover your tuition fees and other educational expenses? Look no further than a LAPO Educational Loan. The LAPO Education Loan is intended to assist parents in covering the costs of their children’s or wards’ education and for owners of educational institutions to upgrade their infrastructure.
LAPO’s education loan are divided into two categories: school fee loan and school improvement loan.
Parents and guardians who wish to send their children to private schools may apply for a School Fees Loan. This loan program is intended to assist parents with the cost of tuition, uniforms, books, and transportation (School Bus).
The Features of LAPO’s School Fees Loan include the following:
- School Fees Loan range ‒ NGN 20,000 – NGN 200,000
- Grace period ‒ 1 Month moratorium (Approximately 30 days after disbursement
- Interest rate ‒ 4%
- Reducing Balance (48% per Annum Reducing Balance)
- Repayment Mode ‒ Monthly
- Loan period ‒ Loan can be disbursed all year round
Although the LAPO School Improvement Loan is for owners of low or medium-income private schools, from Nursery Schools to Secondary Schools, to assist them in improving their schools in improved Learner Enrollment & Quality Education. This loan aims to meet the school’s needs for operating cash, building renovations, and purchasing fixed assets that boost student learning.
The Features of LAPO’s School Improvement Loan include the following:
- Loan amounts: NGN250,000 – NGN 10,000,000
- Grace period: 3 -18 months
- Interest rate ‒ 4%
- Reducing Balance (48% per Annum Reducing Balance)
- Repayment Mode ‒ Termly (Repayment will be based on the school’s cash flow)
- Loan period ‒ loan can be disbursed all year round.
With these requirements in mind, getting a LAPO Educational Loan is easier than ever! Just apply and get started today!
LAPO Public Sector Loan (Salary Loan)
LAPO’s Public Sector Personal Loan (PSPL) is a credit product that provides personal loan to Nigerian civil servants through payroll lending at the state and federal levels.
Deduction-based PSPL is used in LAPO. Hence, repayments to LAPO Microfinance Bank come before salary payments to wage employees. Although LAPO doesn’t require a personal guarantor for this loan, monthly repayments are automatically debited from your account each month as soon as your salary is deposited.
The Features of this Loan include the following:
- Loan amounts: N20,000 – N3,000,000
- Loan Type: Individual (Payroll Lending)
- Loan Duration: 1- 12 Months
- No personal Guarantor is required
- The borrower must be a Civil Servant under State or Federal Government establishment
- No collateral
- No Bank Account opening required
- Flexible repayment structure
- Interest Rate: 2.95% Flat Monthly
- Quick loan in 6 hours
To get the LAPO Public Sector Personal Loan, here are the Requirements:
- Duly completed application form
- The client must have at least two years left in public service
- 2 recent passport-size photographs
- Last three months’ payslip
- Last three months’ bank statement
- A valid means of ID (national ID, driver’s license, voter’s card or international passport)
The good news is that LAPO Public Sector Loan (Salary Loan) can be applied for online, and you can get approved within 24 hours of application. All you need to do is fill out an online application form and upload all necessary documents (ID card and proof of salary). The loan amount will be transferred to your bank account within 24 hours after successful verification.
LAPO Special Loan
The LAPO Special Loan is a quick, affordable way to get the money you need when urgent needs arise. LAPO’s Special Loan addresses the credit needs of existing customers who need larger loan amounts to grow their businesses.
The Features of this Loan include the following:
- Loan amount: N50,000 – N250,000
- Loan Type: Group
- Loan Duration: 6 months
- Grace period: 1 month
- No collateral
- Access to a higher loan to fund your business enterprises
- Flexible repayment structure
- Low-interest rate
Once approved, expect your funds in your bank account within minutes.
How Much Can LAPO Borrow?
You never have to worry about borrowing too much or too little from LAPO. There are different types of loan available with LAPO, and the amount you can borrow depends on the type you choose.
You can borrow between NGN5,000 and NGN10,000,000 for personal usage, small or large-scale business enterprises, SME lending, asset enhancement, educational expenses, and salary loan.
What is LAPO Loan Interest Rate?
You may be wondering what the interest rate on a LAPO loan is. The answer depends on which type of loan you’re getting and other factors, such as your credit score.
Generally, LAPO loan have competitive interest rates ranging from 2.5%; this is lower than many other forms of financing. Plus, the rates are fixed, and there are no hidden fees or costs, which means you always know exactly how much you’ll pay.
The illustration below provides a clearer understanding of LAPO Loan’s interest rates across all of its products.
How do I qualify for a LAPO loan?
If you’re considering a LAPO loan, here are the qualifications you’ll need to meet. Depending on the type of loan you’re taking out, there can be additional criteria.
You may be eligible for one if you apply for a LAPO loan and have a strong credit score. Depending on the type of loan, there may be additional requirements. Still, the basic ones are a properly filled application form, two guarantors, two recent passport-size photos, a current utility bill, and a legitimate form of identification, such as a passport, driver’s license, voter card, or national ID.
How to Apply for a LAPO Loan?
Getting a LAPO loan is quite straightforward; visit a LAPO office branch or contact LAPO customer service to apply for a loan. But you can apply online for the LAPO Business Loan and the LAPO Salary Loan (Public Service Loan).
Does LAPO give Students loan?
Have you ever wondered if LAPO offers student loan? Currently, LAPO does not offer student loan to higher education institutions. Nonetheless, LAPO provides an education loan with a maximum amount of 200,000 naira for parents of children in kindergarten, primary and secondary institutions.
How to Get a LAPO Loan Online
The LAPO SME loan and the LAPO Salary loan (Public Service Loan) are the only ones you may now apply for online using an online application form. You must fill out an application in person at a LAPO office branch to apply for other forms of LAPO loan.
If you’re looking to get a LAPO loan online, the process is quite simple:
- Visit the LAPO website and fill out their secure lending form. This will help them assess your creditworthiness and ability to repay the loan.
- Upload documents like proof of ID, your address, source of income and any other relevant documents. All of this information is kept confidential and secure.
- Once their team has verified your application, they’ll contact you to discuss the next steps in the process.
- Then you can set up specific payment terms that work for you, and your budget LAPO makes it easy to pay back your loan in manageable instalments over time.
- After all, that’s done, you’ll soon have the money transferred into your bank account; it’s really that simple!
So if you need fast and easy access to cash without getting stuck with a huge APR or ridiculous fees, a LAPO loan online could be exactly what you need!
FAQs About Obtaining a LAPO Loan
LAPO loan is a type of loan specifically tailored to the needs of low-income earners. It is designed to provide easy access to short-term credit for those who may not have access to traditional sources of finance.
If this sounds like something you’d be interested in, here are some FAQs about obtaining a LAPO loan:
What is LAPO Loan code, LAPO USSD Code?
There isn’t a specific loan code or USSD code for borrowing money at LAPO.
Where can I see the LAPO Loan Calculator?
LAPO does not currently provide loan calculators on its website or mobile application.
How do I contact LAPO?
If you have any questions or concerns, you may reach out directly through their customer care line at +234 813 984 0230 or on Whatsapp at +234 815 055 3264.
What Happens If I Am unable To Pay Back A LAPO Loan?
The lender offers various payment arrangements depending on your current financial situation. Therefore, you must reach out and discuss with them if you cannot make timely payments for them to help develop a payment plan that works for you.
If you still have questions about getting a LAPO loan, contact their customer service team today, and they’ll be happy to help you!
Conclusion
You now have a good understanding of the various types of LAPO loan and their features. With this knowledge, you can decide which type of loan is best for you and how to proceed with getting one.
Like other forms of credit, taking out a LAPO loan should be calculated. Be sure to compare different lenders, their interest rates and terms, and customer service. With the right LAPO loan, you can enjoy the financial flexibility to achieve the goals you have in mind.
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