How To Get Loan Without Collateral in Nigeria From LAPO
Lift Above Poverty Organization(LAPO) is an NGO that has 300 branches in Nigeria and operate a micro-finance bank (MFB) that was founded in the year 1987; as of today, they are the Nigeria banks that offer loans without collateral. The LAPO Microfinance Bank Limited is a pro-poor financial institution that focused on improving the quality of life of the poor via the provision of credit, savings instruments, and other financial services.
So, in this post, We will be dishing out where you can get the loan to start a small scale business, their requirements, the benefits, and also the repayment plan.
Why you should choose LAPO(benefits)
- A small amount of the Interest Rate will be added to the money borrowed.
- Transactions cost minimal, banking services to the doorstep of clients
- Low cost of service
- Your collateral is not needed
- No extensive documentary work needed
- Benefit from the diversified clients training programme.
Here are what you will be required when you subscribed for LAPO Trader’s Loan
==> Fill in the loan registration form
==> You’ll need to Open an account with 10% of the money you want to get a loan.
==> At least Two Guarantors (Note: LAPO liaison officer will visit the guarantors). Your two guarantors will need to be available on the day you will be given the loan.
==> LAPO liaison officer would also pay a visit to your shop to assess it.
Having done with the processes mentioned above, you can then pay 10% and 0.5% of the approved loan amount for administrative fee and Insurance premium respectively, and you will also receive a 2days training.
LAPO Loan Repayment Plan and Interest Rate
As at writing this post, The loan is given out with an interest rate of 2.2%, and the repayment is always up to 8 solid months.
Mind you, 1% of the loan will be contributed by you monthly, and you can withdraw the total after you finish paying back the loan.
Let’s do some analysis.
For instance: You were loaned N150,000 from LAPO, remember the interest rate is 2.2% and made up with them that you’ll be refunding the money in 6 months.
So, Total Interest for 6 months = 150,000 x 2.2% x 6 months is = 19,800.
Monthly loan payment is = (19,800 + 150,000) / 6 = 28,300
Monthly contribution = 1% x 150, 000 = 1,500
So, Total monthly payment is = 28,300 + 1,500 = 29,800
In summary, if you get a loan of N150,000 from them, you will need to pay N29,800 monthly for six months.
So, our candid advise is to obtain a loan that you can afford without giving you stress.
Note: You will be fined N1,500 daily if you don’t pay back the loan at the agreed time.
Check out LAPO official website at : http://www.lapo-nigeria.org.