How To Get Loan in Nigeria Without Collateral at LAPO

This is a guest post compiled by Oluwayomi Obadina for OgbongeBlog

LAPO (Lift Above Poverty Organization) established in 1987, is an NGO in Nigeria that runs a micro-finance bank (MFB); which is one of the Nigerian banks that give out loans without collateral. The LAPO Microfinance Bank Limited is a pro-poor financial institution committed to improving the quality of life of the poor through the provision of credit, savings instruments and other financial services.

If you are still wondering if it is really possible to borrow money without collateral in Nigeria, well, it is for REAL. Someone very close to me here in Nigeria was recently granted a business loan by LAPO without collateral. So, in this post, I will be sharing with you where you can get the loan to start a small scale business, the benefits, the requirements and the repayment plan.

Benefits of becoming a LAPO client

  1. Small amount of installment, therefore making  repayment schedule least stressful.
  2. Transactions cost minimal, banking services to the door step of clients
  3. Low cost of service
  4. No collateral is needed
  5. No extensive documentary work needed
  6. Benefit from diversified clients training programme.

Requirements for LAPO Trader's Loan

==> Fill a registration form

==> Open account with 10% of the amount you want to get as loan.

==> Two Guarantors (Note: They will be visited by LAPO laison officer). Your two guarantors must be on ground on the day the loan will be disbursed to you.

==> LAPO laison officer will also visit your shop to assess it.(Note: This will play a vital role in how much the trader will get because they are going to assess the shop).

After the above processes, you can then pay 10% and 0.5% of the approved loan amount for administrative fee and Insurance premium respectively and you will also be trained for two days.

LAPO Loan Repayment Plan and Interest Rate

Apart from taking the this loan without collateral, you are also going to enjoy a very small interest rate that is very affordable. The loan is been given out with an interest rate of 2.2% only as at the time of publishing this post and the repayment is up to 8 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 quickly do small mathematics.

Take for example: If you get a loan of N150,000 from LAPO, remember the interest rate is 2.2% and you decide to pay it back in 6 months.

Total Interest for 6 months = 150,000 x 2.2% x 6 months = 19,800.

Monthly loan payment = (19,800 + 150,000) / 6 = 28,300

Monthly contribution = 1% x 150, 000 = 1,500

Therefore, Total monthly payment = 28,300 + 1,500 = 29,800

In conclusion, if you take a loan of N150,000, you will have to pay N29,800 monthly for 6 months.

Just to wrap it up, only collect the LAPO loan amount that you can afford to pay back without stress.

You have to follow your repayment plan religiously because you will be fined if you don't pay back at the right time, the fine should be around N1,500 daily till you pay.

Please don't divert the loan to use it for online investments especially HYIP.

LAPO has over 300 branches in Nigeria. LAPO helps in improving lives and committed to the empowerment of low-income individuals. You can check LAPO website at : http://www.lapo-nigeria.org.

I hope you make the best of this post. Feel free to ask questions via comments.

This post was written by +Oluwayomi Obadina . He is the owner of Internet Investment Ideas blog. You may visit his blog for tips and like his page on Facebook.

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  1. Jumoke6/26/2013

    Wow! used to believe this is not possible ooo but please can salary earners also get loan from LAPO without collateral?

    1. Not for salary earners. Just for people willing to start small scale businesses

  2. I hate them seriously ,,,,,,,to be candid

    1. because they are not giving out the loan to salary earners or what?

    2. I don't know why you hate them but you will hardly find commercial banks in Nigeria that give out unsecured loans that is, loan without collateral....we call it free money when I was marketing for a bank....*SMILES*
      Anyway, I am sure you have your reasons.

  3. It is a lift for the less privilege in our society, they are doing their best. Getting the loan is one thing, wisely utilizing it is another.

    1. You are right bro. That's why LAPO visits clients shops, organize training for them etc.

  4. can LAPO be found in abuja?if yes where in abuja thanks

    1. Yes, they have branches in Abuja, you can click on the link below to get the branch that is closest to you. http://www.lapo-nigeria.org/lapomfb/abuja-region

  5. Anonymous7/09/2013

    my p.man also is a member of LAPO and honestly its working well for him. the fact i like about them is that they don't require collateral for granting of loan. you can also check this post about how to secure loan from bank of agriculture without collateral

  6. Can one get a loan of up to #500,000?

  7. Anonymous12/08/2013

    I think the interest rate is too much for the poor people when we consider the run away and galloping inflation in the Nigeria economy. #150,000.00 with the #29,000.00 ou are payment plan is as if you put the poor people into slavery.. Please in the name of God, set them free if truly you are helping the poor masses . Adekanbi

  8. cosmas ik1/09/2014

    When sombody meets your requirements to obtain a loan, how long does it take for to be received?

  9. Anonymous2/14/2014

    Can someone that does not have a shop but want to start a bizness get loan from you

  10. Hi Jide, you are really doing a wonderful job in this blog, in fact, i really commend your effort for opening Nigerian eyes to better opportunities that could change their life for better. Concerning the issue of getting loan without collateral, i will like to advise the loan seekers to exercise patience in choosing any finance company or finance institution to secure their loan because there are lot of available options to choose from, you need to think about their terms and conditions, the nature of your business, is your business an existing one or newly start-ups?, what is your financial pay-back capability? Payback duration convenience also needs to be taken into consideration. Never limit your search to a particular domain, check round and find out the one that is best & suitable for your own business. Obtaining loan is not a problem, but paying back is the issue.it is advisable to peruse various sources of obtaining loan without collateral before make your final decision. You may find this link helpful in your quest to obtain loan without collateral www.loanfreepackage.blogspot.com

    1. vickie3/13/2014

      I stongly agree with you, I want a loan for a new business but I don't think I can cope with this their interest rate and mode of payment

  11. Anonymous4/24/2015


  12. Anonymous5/27/2015

    Plz were is LAPO in Port Harcourt

  13. This serve as advantage for the less privilege in our society so as to start small or medium scale business , and it should be utilized wisely.

  14. Anonymous8/11/2015

    What if my husband want to get a loan of 850,000 is that possible?

    1. I doubt if LAPO can give you such. You can visit them at their office for more info

    2. I dont have a shop i just want to start a business can they borrow me

  15. Anonymous8/31/2015

    hmmmm can i get #300,000 frm them

  16. If someone get a loan let's say in September, must the payment commence in the same month?

  17. Pls do one need to provide guarantors with
    post dated cheque before disbursement?

  18. Hello Sir, I have a good business plan which am very sure will succeed. can I access a start up loan from LAPO? Chuks Uche

  19. Hello Sir, I have a good business plan which am very sure wil succeed. Can I access a start up loan of about 400,000 from LAPO?

  20. Arowolo kemi3/15/2016

    So many dumb question from dumb people,you guys already read the requirement whystill asking if they can give you loan ?

  21. Lapo is really the best mfb in Nigeria today and their interest rate is second to none. I have used them and can proudly say they are the best. kindly visit any of their offices and make your enquiries. thank you.

  22. Anonymous9/20/2016

    Please I am a road side seller, can I still apply for the loan

  23. please were is lapo office in port Harcourt?

  24. I want to be member
    how do I start?

  25. Can a driver have access to the loan, the vehicle is faulty and loan to get back to business 100k


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