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 :

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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Written by Jide Ogunsanya

Pro Nigerian Blogger, Digital Marketer and Web designer. I help business owners to grow their businesses online. You can join my Facebook Group here or join my Telegram Group here.

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  1. 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

  2. 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 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

  3. I need a loan to boost my business and I’ve to LaPorte for loan they say I will have to join one union before they can offer me the loan place help me. Thanks sir

  4. The opportunity is second to none. But LAPO will be helping people better if the loan repayment periods can be extended or elongated to make monthly repayment more attractive as low as everyone can afford.

  5. my name is kassim adam a yourngman runing rechage card retail business at gambia street portharcourt river state, i need a loan of 300000 naira from lapo i have more customers and my capital is smale i need help for loan,thank you.

  6. Wait. You said you open an account with them of about 10% of the fund you want to collect and again pay10% again with another 0.5% as administration free ND in surface premium. Using the N150k example you gave, you are saying I will open account with 15k and then pay and 15k as administration free and then N750 as insurance. Then on every month I will pay 29,800 till I am done.
    So in other words for me to collect a loan of 150k, I need to spend N30750 and then also pay interest.

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