In today’s dynamic business environment, small and medium-sized enterprises (SMEs) play a crucial role in driving economic growth. However, access to adequate funding remains one of the significant challenges faced by SMEs. Thankfully, financial institutions like LAPO Microfinance Bank offer tailored solutions like the SME loan to empower and support entrepreneurs.
In this article, we will explore all aspects of the Lapo SME loan, from what it is to how you can apply and benefit from it.
How to borrow money from LAPO Microfinance Bank?
To apply for an SME loan from LAPO, click here to visit the LAPO Microfinance Bank SME loan section. Click “Apply Now”, enter your BVN, and follow the prompt.
Ensure you read the SME loan requirements and terms and ensure your business meets the necessary criteria before proceeding.
What are the requirements to borrow money from LAPO?
LAPO ensures that its small business loans are accessible to a wide range of entrepreneurs and supports them with a credit facility amounting up to N10,000,000 [AO1] Iand the period of time specified for the repayment of the loan is 12 months. The following documents are required in the loan application process
● Loan application letter: As part of the application process, potential borrowers are typically required to submit a loan application letter. This letter serves as a formal request for the loan and provides essential details about the borrower’s business and the purpose of the loan.
● A valid means of ID: Applicants must provide a valid means of identification, such as a national ID card, driver’s license, voter’s card, or international passport. This verification helps establish the borrower’s identity and ensures compliance with regulatory requirements.
● 4 recent passport-size photographs: The loan application typically requires applicants to provide four recent passport-size photographs. These photographs are often used for record-keeping and identification purposes.
● Duly completed application form: The LAPO SME Loan application form must be completed accurately and comprehensively. This form collects essential information about the applicant’s business, financial details, and intended use of the loan.
● Current utility bill: Applicants are usually required to submit a current utility bill as proof of their address. This can be a recent electricity bill, water bill, or any other official document showing the applicant’s place of residence or business location.
● 2 guarantors: The LAPO SME Loan require two individuals to act as guarantors for the loan. These guarantors are typically individuals with good financial standing who vouch for the borrower’s ability to repay the loan as agreed.
Recommended reading: How to Get Business Loans Without Collateral
What are the advantages of LAPO SME loans?
● No collateral loan is required
● Easy access to funds for business expansion
● Flexible repayment structure
● Operate with a low-interest rate.
● Training on basic financial management, business planning and customer relations
● Expert financial advice available
What are the disadvantages of LAPO SME loans?
● 2 guarantors are required for SME loans.
● The SME loan has a maximum duration of one year.
Does LAPO need collateral?
No, LAPO doesn’t require collateral. However 2 guarantors have to be provided.
What is LAPO’s monthly interest rate?
Nigerian SMEs can now maximize their potentials with the SME Loan for the expansion of their businesses. The bank considers a number of factors in deciding on interest rates. It provides loans to SMEs at an affordable interest rate.
Recommended reading: 7 Best Funding Sources for Your Business in 2023
Can I borrow from LAPO online?
Yes, you can borrow from LAPO online. To apply for an SME loan from LAPO, click here to visit the LAPO Microfinance Bank SME loan section. Click “Apply Now”, enter your BVN, and follow the prompt.
The LAPO SME Loan is a reliable funding source for entrepreneurs due to its accessibility, streamlined application process, and commitment to inclusive financial practices. By providing tailored financial support, LAPO empowers entrepreneurs to turn their business visions into reality, creating a positive impact on local communities and contributing to economic development.