Lapo Microfinance Bank Review – What You Should Know
LAPO Microfinance Bank is a leading microfinance bank in Nigeria. It was founded in 1993 with the mission to provide financial services to low-income Nigerians. LAPO Microfinance Bank has over 10 million customers and over 2,000 branches across Nigeria.
Thank you for reading this post, don't forget to subscribe!What products does Lapo Microfinance Bank offer?
- Savings accounts: LAPO offers a variety of savings accounts with different features and interest rates, including individual savings, savings plan accounts, Xpress savings accounts, and My Pikin & I savings accounts.
- Loans: LAPO offers a variety of loans for individuals and businesses, including SME loans, asset loans, education loans, public sector loans, and SUFEN loans (Supporting Female Entrepreneurs).
- Microinsurance: LAPO offers a variety of microinsurance products, including life insurance, health insurance, and property insurance.
- Money transfer: LAPO offers a money transfer service that allows customers to send money to other LAPO customers or to bank accounts in Nigeria.
- Mobile banking: LAPO offers a mobile banking app that allows customers to view their account balances, transfer money, pay bills, and more.
Here is a table of the interest rates for LAPO’s savings accounts:
| Account type | Interest rate |
|---|---|
| Individual savings | 0.10% |
| Savings plan accounts | 0.30% |
| Xpress savings accounts | 0.50% |
| My Pikin & I savings accounts | 1.25% |
Here is a table of the interest rates for LAPO’s loans:
| Loan type | Interest rate |
|---|---|
| SME loan | 18% |
| Asset loan | 20% |
| Education loan | 12% |
| Public sector loan | 15% |
| SUFEN loan | 10% |
Please note that these are just some of the products that LAPO Microfinance Bank offers. For more information, please visit their website or contact their customer service department.
What are the advantages of Lapo Microfinance Bank?
Lapo Microfinance Bank is a leading microfinance bank in Nigeria that offers a variety of financial products and services to individuals and businesses. Some of the advantages of using Lapo Microfinance Bank include:
- No collateral required for loans: Lapo Microfinance Bank does not require collateral for most of its loan products, making it easier for small businesses and individuals to access financing.
- Flexible repayment terms: Lapo Microfinance Bank offers flexible repayment terms on its loans, which can be tailored to the borrower’s financial situation.
- Low interest rates: Lapo Microfinance Bank offers low interest rates on its loans, which can help borrowers save money on their financing costs.
- Wide network of branches: Lapo Microfinance Bank has a wide network of branches across Nigeria, making it easy for borrowers to access their accounts and services.
- Customer-focused approach: Lapo Microfinance Bank is committed to providing excellent customer service to its borrowers.
Here are some additional advantages of Lapo Microfinance Bank:
- They offer a variety of savings products, including a savings plan account with a low minimum balance requirement.
- They have a mobile banking app that makes it easy to manage your account and make transactions.
- They offer financial education programs to help their customers make informed financial decisions.
- They have a strong commitment to social responsibility and support a number of community development initiatives.
Overall, Lapo Microfinance Bank is a good option for small businesses and individuals looking for access to affordable financing and financial services. They offer a variety of products and services, competitive interest rates, and a customer-focused approach.
What are the disadvantages of Lapo Microfinance Bank?
Lapo Microfinance Bank is a popular microfinance bank in Nigeria that provides loans to low-income individuals and businesses. However, there are some disadvantages to using Lapo Microfinance Bank, including:
- High interest rates. Lapo Microfinance Bank has some of the highest interest rates in Nigeria. For example, their personal loan interest rate is 20% per annum, and their business loan interest rate is 25% per annum. These high interest rates can make it difficult to repay the loan, especially if you are on a low income.
- Group loans only. Lapo Microfinance Bank does not offer individual loans. Instead, they only offer group loans, which means that you will need to find at least 5 other people to apply for the loan with you. This can be difficult, especially if you do not know many people who are also looking for a loan.
- Guarantor required. In addition to requiring group members, Lapo Microfinance Bank also requires each member to have a guarantor. This guarantor is someone who agrees to repay the loan if the borrower defaults. This can be a challenge, especially if you do not have a close friend or family member who is willing to be your guarantor.
- Short loan terms. Lapo Microfinance Bank loans typically have a maximum term of 1 year. This means that you will need to repay the loan quickly, which can be difficult if you are on a low income.
Overall, Lapo Microfinance Bank can be a good option for low-income individuals and businesses who need a loan. However, it is important to be aware of the high interest rates, group loans only requirement, guarantor requirement, and short loan terms before you apply for a loan from Lapo Microfinance Bank.
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Here are some additional things to consider before applying for a loan from Lapo Microfinance Bank:
- Make sure you understand the terms and conditions of the loan, including the interest rate, repayment schedule, and any fees.
- Be prepared to provide collateral for the loan.
- Have a plan for how you will repay the loan.
- Consider other options for financing, such as a bank loan or a credit union loan.
If you are still considering a loan from Lapo Microfinance Bank, I recommend that you speak to a financial advisor to get personalized advice.
What are Lapo Microfinance bank loan requirements?
The loan requirements for Lapo Microfinance Bank vary depending on the type of loan you are applying for. However, some general requirements include:
- You must be a Nigerian citizen.
- You must be at least 18 years old.
- You must have a valid national ID card or passport.
- You must have a fixed address in Nigeria.
- You must have a source of regular income.
- You must have two guarantors who are also Nigerian citizens and have a fixed address in Nigeria.
- You must provide a copy of your guarantors’ national ID cards or passports.
- You must provide a copy of your guarantors’ utility bills.
In addition to these general requirements, there may be other specific requirements for the type of loan you are applying for. For example, if you are applying for an education loan, you will need to provide proof of enrollment in a recognized educational institution.
Lapo Microfinance Bank does not require collateral for its loans. However, you may be required to pay a processing fee. The interest rates on Lapo loans are also relatively high, so it is important to make sure that you can afford the monthly repayments before you apply for a loan.
To apply for a loan from Lapo Microfinance Bank, you can visit the nearest branch or apply online. You will need to provide the required documentation and meet the eligibility criteria in order to be approved for a loan.
Here are the specific loan requirements for some of the most popular Lapo Microfinance Bank loans:
- Regular Loan: This loan is available to individuals who need funds for a variety of purposes, such as business, education, or personal expenses. The loan amount ranges from NGN30,000 to NGN150,000. The repayment period is 8 months.
- SME Loan: This loan is available to small and medium-sized businesses that need funds to expand or grow their businesses. The loan amount ranges from NGN500,000 to NGN5,000,000. The repayment period is up to 3 years.
- Education Loan: This loan is available to students who need funds to pay for their tuition, books, and other educational expenses. The loan amount ranges from NGN250,000 to NGN10,000,000. The repayment period is up to 5 years.
In Conclusion:
our bank offers a variety of loan options to cater to different needs and circumstances. Whether you are an individual looking for personal financing, a business owner seeking funds to expand, or a student in need of educational support, we have tailored loan solutions to suit your requirements. Our competitive interest rates, flexible repayment periods, and efficient loan processing make us the ideal choice for all your financial needs. Contact us today to discuss your loan options and start your journey towards financial success.
