Types of Lapo Loan – Everything you need to know

If you are a Nigerian, you may be familiar with the financial institution, Lapo. Basically, Lapo microfinance bank is a prominent financial institution in Nigeria that offers instant loans to the underbanked population. In case you are wondering about the types of Lapo loan products, read further to learn more about them. 

An Overview of Lapo Loan

LAPO Microfinance Bank is a financial institution that offers a variety of financial products to businesses and low low-income households. Basically, they offer loan services to both businesses and low-income earners. 

The financial organisation was established in April 2007 and the Central Bank of Nigeria licensed it to function as a State Microfinance Bank in 2010. It became a National Microfinance Bank in 2012. Currently, Lapo boasts a wide network of more than 500 branches.

What are the types of Lapo loan products?

There are nine different types of Lapo loan products. These  products include: 

1. SME Loan

The “SME Loan” is one of Lapo loan products that was specially designed to render financial support to SME (Small and Medium Scale Enterprises) operators in Nigeria. Hence, as a small or medium-scale business owner, you can apply for a business loan, regardless of the sector your business is operating. 

What is the maximum amount of SME loan I can get from Lapo?

The Lapo SME loan offers you a maximum amount of N5,000,000. Also, for any SME loan you obtain, you get a loan tenor of 12 months

What documents do I need to obtain the Lapo SME Loan? 

Here is the documentation you need to obtain the Lapo SME loan:

• Loan application letter
• Duly completed loan application form
• 2 guarantors
• A valid and acceptable means of ID (national ID, a driver’s license, your voter’s card or even an international passport)
• Current utility bill
• 4 recent passport

2. Agricultural Loan

The Agricultural financing product is specially designed to assist farmers with loans to boost their farm work. The loan amount for the Lapo agric loan is between the range of ₦30,000- ₦1,000,000. To qualify for this product, you have to be a practising farmer with checkable evidence of some farm investments.

What is the loan tenor for Lapo agricultural loan?

For agricultural loans, this financial institution gives you a loan tenor between 1-12 months. Also, they grant you a grace period of 30-60 days. 

What documents do I need to obtain the Lapo Agric Loan?

Here is the documentation you need to obtain the Lapo agric loan:

• Duly completed application form
• 2 recent passport-size photographs
• 2 guarantors
• A valid and acceptable means of ID (national ID, driver’s license, voter’s card or international passport)
• Your current utility bill

Interesting Read: 5 Instant Loan Without BVN In Nigeria

3. Regular Loan

This loan product is designed to function on a group (union) procedure. A union is a group of people who have free access to loans individually, yet have group guarantees. Basically, the regular loan package was designed to help satisfy the working capital demands of clients in who operate small businesses. 

What are the minimum and maximum amounts of Regular loans I can get from Lapo?

The regular loan facility grants you a minimum of N30,000 and a maximum amount of N150,000. They give you a loan duration of 8 months for this loan and a grace period of 2 weeks.

What documents do I need to obtain the Lapo Regular Loan? 

Here is the documentation you need to obtain the Lapo regular loan:

• Duly completed loan application form
• 2 recent passport
• 2 guarantors
• Recent electricity bill
• A valid means of ID 

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4. Asset Loan

As the name implies, asset loan product aims to help existing customers of LAPO MfB buy assets such as refrigerators, generators, grinding machines etc. to further boost the productivity of their business.

What are the minimum and maximum amounts of Asset loans I can get from Lapo?

The asset loan facility grants you a minimum of N20,000 and a maximum amount of N400,000. Basically, Lapo gives you a loan duration of 11 months for this loan and a grace period of 1 month for this loan.

What documents do I need to obtain the Lapo Asset Loan? 

Here is the documentation you need to obtain the Lapo asset loan:

• Savings account domiciled with LAPO MfB
• Duly completed loan application form
• 2 guarantors
• 2 recent passport photographs
• Current utility bill
• A valid means of ID 

5. Education Loan

Lapo provides this loan package to improve the quality of education. Basically, it aims to help parents to meet the education expenses for their children. Also, this loan helps owners of educational institutions to improve their facilities. The Education Finance Loan package is dived into two major product offerings. They include:

a. School Fees Loan

School Fees loan is designed for working parents/guardians who want to educate their kids in private schools. This loan offer ranges between NGN 20, 000 to NGN 200, 000 while the grace period is for 1 month with a 4% interest.

b. School Improvement Loan

School Improvement Loan produce is specially designed for school owners to enable them to improve their school facilities. This loan offer ranges between NGN 250,000 to NGN 10,000,000

while the grace period is for 3 to 18 months with a 4% interest.

What documents do I need to obtain the Lapo Education Loan? 

Here is the documentation you need to obtain the Lapo education loan:

• Loan application letter
• Duly completed loan application form
• 2 guarantors
• A valid means of Identification 
• Recent utility bill
• 4 recent passport-size photographs

7. Special Loan

Lapo Special loan package was designed to satisfy the credit needs of regular Lapo loan customers who need bigger loan amounts to boost their businesses.

What are the minimum and maximum amounts of special loans I can get from Lapo?

The asset loan facility grants you a minimum of N50,000 and a maximum amount of N250,000. Basically, Lapo gives you a loan tenor of 6 months for this loan and a grace period of 1 month for this loan.

What documents do I need to obtain the Lapo Special Loan? 

Here is the documentation you need to obtain the Lapo special loan:

• Duly completed application form
• 2 recent passport-size photographs
• Current utility bill
• 2 guarantors
• A valid means of ID 

Lastly, to qualify for this package you must have had an outstanding repayment performance while accessing the Regular Loan product. 

8. Public Sector Loan

The Public Sector Loan product offers personal loans via payroll lending to steady income earners who are in the civil service.

9. SUFEN Loan (Supporting Female Entrepreneurs)

The Lapo SUFEN Loan is a special product that is specifically designed to support Female Entrepreneurs. Basically, this product offers female business owners loans for their businesses.

Bottom Line

There are various types of Lapo loan products. Basically, each of these products is specially designed to meet the needs of the common man who doesn’t have access to bank loans. Also, they don’t require any collateral and this makes the application process easy. If you plan to apply for any Lapo loans, ensure you make adequate preparation to repay them back on or before the due date. 

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