How To Apply For A Lapo Loan | Lapo Loan USSD Code (2024)

Last Updated on Mar 23rd, 2024

Individuals and small businesses alike need quick, convenient loans. LAPO Microfinance Bank is a leading financial institution in Nigeria. It understands this need.

It offers an innovative solution: loans accessible through a simple USSD code. This service revolutionizes the way people access financial support. It makes it faster, easier, and more accessible than ever before.

Lapo Personal Loan
Lapo Personal Loan

An Overview of Lapo Personal Loan

A personal loan is a specific amount of money you have access to borrow and use for numerous purposes.

The Lapo personal loans give you quick access to up to N500,000 for your personal needs. You can use this money to take care of your personal needs or run your business.

Also, this loan is collateral free and this makes it easily accessible to the underbanked population in Nigeria.

Types of Lapo Loan

1. SME loans

LAPO’s SME loans aid the growth and expansion of small and medium-sized enterprises. These loans usually offer larger amounts of funding.

This can be instrumental for businesses. They are looking to scale, purchase new equipment, or expand their operations. The requirement for collateral depends on the specific terms of the loan.

These loans have longer repayment periods compared to standard loans. This gives businesses more time to manage their finances.

They can also use the funds effectively. The aim is to support the entrepreneurial spirit and contribute to the growth of the SME sector.

2. Agriculture Loans

Agriculture loans are specifically tailored for farmers and agricultural businesses. These loans support various farming activities. They can be used for buying seeds, equipment, and other essential farming inputs.

These loans have lower interest rates, making them more affordable for farmers. This is one of their key advantages. Also, they might come with government subsidies.

This eases the financial burden on farmers even further. These loans are crucial. They aid the growth and sustainability of the agricultural sector.

They ensure that farmers have the necessary capital to maintain and grow their operations.

<<RecommendedHow To Get Agric Loans in Nigeria

Public Sector Loans

LAPO offers Public Sector Loans to government employees who need personal loans. These loans are unique. These loans are directly deducted from the borrower’s salary.

The repayment process is straightforward and hassle-free. This structure eliminates the need for a guarantor, simplifying the loan process.

These loans are especially helpful for civil servants. They need quick access to funds without the complexities of traditional loan applications.

Regular Loans

Regular Loans from LAPO are for individuals and small businesses. They need a modest amount of money for their daily operations.

The repayment terms for these loans are relatively short, ranging from 6 to 12 months. These loans operate on a group or union basis. Individuals within a group can access loans. The group guarantees the loans.

This system is designed to make it easier for small businesses and individuals to access capital for business and personal needs.

Asset Loans

Existing LAPO customers can get Asset Loans to buy generators, refrigerators, grinding machines, etc. These assets boost business productivity.

The loan amounts range from NGN 20,000 to NGN 400,000, with a maximum repayment period of 11 months.

There’s also a one-month grace period before the repayment starts. This provides customers with some flexibility to organize their finances.

Education Loans

There are two forms of Education Loans: School Fees Loans and School Improvement Loans. School fee loans are designed for parents or guardians to cover the education expenses of their children in private schools, whereas School Improvement Loans are targeted at owners of educational institutions looking to upgrade their facilities.

These loans are vital in ensuring access to quality education and in aiding the development of educational infrastructure.

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Special Loans

Special Loans cater to the needs of regular LAPO customers. They need larger loan amounts to expand their businesses.

These loans are a step up from regular loans, offering higher amounts ranging from NGN 50,000 to NGN 250,000.

The repayment period for these loans is 6 months, with a grace period of one month. They support business growth among LAPO’s loyal customer base.

Public Sector Personal Loan (PSPL)

The PSPL is a credit product tailored for Nigerian civil servants. It is available through payroll lending at the state and federal levels. The loan amounts are significant. They range from NGN 20,000 to NGN 3,000,000.

The repayment structures are flexible. This loan has easy access and repayment. It does not require a personal guarantor. Repayments are made directly from the borrower’s salary.

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Nano Loan (pCash)

Nano Loans, also known as pCash, are small, short-term loans. They are designed for urgent financial needs, such as medical bills or tuition fees.

These loans provide immediate financial relief for unexpected expenses. They are easily accessible. This ensures that borrowers can promptly meet their urgent financial needs.

How To Apply For a Lapo Loan

1. Try to meet the requirements before applying

Before applying, ensure you meet the eligibility criteria for the LAPO loan product you are interested in. Each loan type, such as SME loans, agriculture loans, or education loans, has its own set of requirements.

2. Gather necessary documents

You will need to provide personal identification, such as a national ID, driver’s license, voter’s card, or international passport.

You’ll also need to provide proof of income or business. This can include recent payslips, bank statements, or business registration documents.

You’ll also need to provide utility bills. Some loans may require additional documents. These can include guarantors, business plans, or evidence of agricultural activities.

3. Fill out the loan application form

Get and fill out the loan application form. You can do this by visiting a LAPO Microfinance Bank branch.

For some loan types, you can complete an online form. Ensure that all the information provided is accurate and complete.

4. Submit the application

After filling out the form and attaching all necessary documents, submit your application to a LAPO branch. Some loans might allow for online submission.

Once your application is submitted, LAPO will process it. This may involve a credit check, verification of documents, and possibly a visit to your business or home for assessment.

5. Approval and disbursement

If your loan application is approved, LAPO will inform you about the terms of the loan. This includes interest rates, repayment schedules, and any other relevant details.

Upon acceptance of these terms, the loan amount will be disbursed to your account. Adhere to the agreed repayment schedule.

Repayments for some loans, such as the Public Sector Personal Loan, may be deducted from your salary.

Lapo Loan USSD Code

To apply for a LAPO loan using their USSD service, dial *371# from the SIM linked to your bank account. Follow the on-screen prompts, including entering your Bank Verification Number (BVN).

You can access loans up to NGN 500,000 without needing collateral. Upon approval, the loan amount will be deposited into your bank account.

Repayments are automatically deducted from the linked bank account on the due date. Ensure there are enough funds available.

<< You may also be interested in 10 Quick Loan Apps Without BVN in Nigeria

Lapo Loan Interest Rate

The interest rates for LAPO loans can vary. This depends on the type of loan and the specific terms of the loan agreement.

For loans accessed through the LAPO USSD Loan code (*371#), the interest rates can range from 2% to 25% of the requested sum.

However, these rates are subject to change and may vary based on the loan amount, tenure, and other factors.

For the most accurate and up-to-date information on LAPO loan interest rates, contact LAPO Microfinance Bank or visit their official website.

Requirements & Eligibility for Lapo Loan

To be eligible for a LAPO loan and successfully apply, you must meet certain requirements. The requirements vary depending on the specific type of loan you’re seeking.

Generally, the requirements across various LAPO loan types include:

  • Applicants must be at least 18 years old.
  • You should have an active bank account with any commercial bank in Nigeria.
  • Applicants must be Nigerian citizens.
  • A good credit history is required, indicating no defaults on previous loans.
  • Source of income
  • Identification and documentation: This includes a duly completed application form. It also includes a current utility bill for address verification. Also, a valid ID (such as a national ID, driver’s license, voter’s card, or international passport) is required. Finally, two guarantors are needed. The number of required passport-type photos varies but usually involves at least two.

Specific loan types, like the Regular Loan, SME Loan, and Small Business Loan, have specific requirements.

These can include a minimum and maximum loan amount, loan term duration, and specific eligibility criteria tailored to the loan’s purpose. For instance, the Agric Loan is specifically for practicing farmers.

How Much Can Lapo Borrow Me?

Lapo can borrow customers up to N5,000,000 or more depending on the outcome of its customer assessment.

Essentially, the higher your net worth and income source as an individual or customer, the higher the amount of loan they are willing to grant you.

How Long Does it Take to Process Lapo Loan?

Lapo loan processing takes a minimum of 24 hours and could span up to 72 hours before approval. Higher loan amounts can take more days like up to a week before disbursement.

How can I contact Lapo?

Here are the numerous ways that you can contact Lapo Microfinance Bank:

Head Office Address: LAPO Place, 15A Ikorodu-Ososun Road, Lagos State. 

Annex Office Address: 18, Dawson Road, Benin City, Edo State.

Phone Number: +(234) 813 984 0230

WhatsApp Number: 081 5055 3264

Email Address: info@lapo-nigeria.org

Website: www.lapo-nigeria.org

FAQs

How much can I borrow from LAPO the first time?

As a first-time borrower from LAPO, you can usually borrow amounts ranging from N30,000 to N500,000. The amount depends on the type of loan.

Does LAPO ask for collateral?

LAPO loans, especially small and micro-loans, generally do not require collateral. Larger loans, like SME loans, may require it.

Does LAPO give loans to salary earners?

Yes, LAPO offers loans to salary earners. These loans are offered particularly through their Public Sector Loan product.

Does Lapo have an app?

Yes, Lapo has an app available for download. The app was developed by LAPO Microfinance Bank. You can find the app on the Apple store.

Conclusion

Lapo personal loans are available to the underbanked population in Nigeria. They are also collateral-free, hence, you can access them with ease.

Just in case you need to get a loan for business or any other personal use, be sure to visit the Lapo branch closest to you and apply for one.  

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