How to apply for Lapo Mfb loan and type of loans

LAPO is a leading microfinance institution in Nigeria that plays a significant role in empowering individuals and communities to rise above poverty through financial inclusion and social development programs.

In this article, we will explore the intricate details of LAPo loans, including eligibility criteria, application procedures, required documentation, loan types, and tips for a successful application. By the end of this content, you will have a comprehensive understanding of how to apply for LAPo loan application process

Read: How to apply for Ab Microfinance bank loan and type of loan

Features of LAPO MfB

• Loan Products:
  • Microloans: Small loans for micro-entrepreneurs and individuals with limited collateral.
  • SME Loans: Larger loans for established small and medium-sized enterprises.
  • Group Loans: Loans provided to groups of individuals who collectively guarantee repayment. 
  • Agriculture Loans: Specialized loans for agricultural activities and businesses.
  • Education Loans: Support educational pursuits of individuals and their families.

How do I qualify for a LAPO loan?

To qualify for a LAPO loan, you need to meet the following general eligibility criteria:

• Be a Nigerian citizen or legal resident.
• Be at least 21 years old.
• Have a verifiable source of income or a viable business.
• Reside or operate your business within LAPO’s coverage areas. Currently, LAPO operates in 34 states across Nigeria.
• Provide valid identification and proof of address. 
  Read: How to check Union Bank of Nigeria account balance

  ELIGIBILITY CRITERIA

  • 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

Specific requirements may vary depending on the loan type you’re interested in. Here’s a breakdown of some of the most common loan types and their specific requirements:

• Microloans:

  • No mandatory savings or deposits required.
  • No audited financial statements needed.
  • Flexible collateral options depending on loan size (household goods, business equipment, inventory, vehicles, property, etc.).

• SME Loans:

  • Business must have been in operation for at least 12 months.
  • Provide business registration documents and tax clearance certificate.
  • Audited financial statements might be required for larger loan amounts.
  • Collateral is required.

• Public Sector Loans:

• Other Loans (e.g., Education, Agriculture):

  • Specific requirements will depend on the type of loan.
  • Generally, you’ll need to provide documents related to the purpose of the loan (e.g., school fees receipts for education loans).

Read:How to contact Opay Customer Service via phone and WhatsApp

Type of Lapo Loan

LAPO Microfinance Bank offers a diverse range of loan products designed to cater to the varying needs of individuals and businesses in Nigeria. Some of the most common loan types include:

• Microloans: These are small, short-term loans designed for micro-entrepreneurs and small businesses with limited collateral. They typically require minimal documentation and can be used for various business purposes such as working capital, inventory purchase, and equipment acquisition.

• SME Loans: These are larger loans targeted at established small and medium-sized enterprises (SMEs) looking to expand their operations or invest in growth opportunities. They come with longer repayment terms and competitive interest rates, but often require more comprehensive documentation and collateral. it support you with a credit facility up to N5,000,000 to expand the enterprise..

• Group Loans or Regular loan: Designed for groups of individuals, typically women, who come together to guarantee each other’s loans. This model promotes collective responsibility and helps individuals with limited access to traditional collateral secure financing ranging from  N30,000 (minimum) to N150,000

• Agriculture Loans: These specialized loans cater to the needs of farmers and agricultural businesses, supporting activities like crop production, livestock farming, and agro-processing. range between N50,000 to N500,000

• Education Loans: These loans assist individuals in financing their education or that of their children, covering expenses such as tuition fees, books, and other educational materials Loan range ‒ NGN 20, 000 to NGN 200, 000

• Health Loans: Aimed at improving access to healthcare, these loans help individuals cover medical expenses such as hospital bills, surgeries, and medication costs.

• Asset Finance Loans: This loan enables customers to acquire assets (cars, generators, etc.) needed to grow their businesses.

• LAPO Agent Banking Loans: These loans are specifically for LAPO agents to finance their operations and expand their businesses.

• Nano Loans (pCash): This is a quick and easy loan product accessible via the LAPO mobile app, offering instant access to small amounts of cash for immediate needs.

Read: How to register and activate FCMB ussd code

How to apply for lapo mfb loan

There are two main ways to apply for a LAPO Microfinance Bank loan:

1. Online Application (Initiation Only)

This method allows you to start the loan application process online, but you’ll still need to visit a branch to complete it.

• Go to the LAPO Microfinance Bank website
•  Click on the “Loans” tab or section on the website.
• Select the loan product that best suits your needs (e.g., Microloan, SME Loan, etc.).
• Click on “Apply Now This will typically lead you to an online application form or a page with further instructions.
• Provide your personal and/or business information, the desired loan amount, and the purpose of the loan.
• Review the information and submit the form.
•  You will likely be contacted by a LAPO representative to schedule a visit to a branch to complete the application process, provide necessary documents, and finalize the loan agreement.

2. In-Person Application at a Branch

This is the traditional method where you complete the entire application process at a LAPO branch.

• Locate your nearest LAPO Microfinance Bank branch.
•  Inform the loan officer about the type of loan you’re interested in and your loan requirements.
•  The loan officer will provide you with an application form. Fill it out accurately and completely.
• Provide all the necessary documents as per the loan officer’s instructions. This may include identification, proof of address, business registration documents (if applicable), bank statements, and any other relevant documents.
• The bank will review your application and inform you of the decision.