LAPO Microfinance Bank: All About It
LAPO Microfinance Bank Ltd (LAPO MfB) was established in the late 1980s with the goal of providing low-income families with financial and social empowerment services. LAPO MfB obtained its license as a Microfinance Bank in 2010 and has grown to become one of Nigeria’s largest microfinance institutions, serving more than one million customers. This article explains all you need to know about LAPO Microfinance Bank.
Watch the below video on LAPO Microfinance Bank:
Obtaining funding is the goal.
In Nigeria, the Federal Monetary Agency (FMO) has decided to lend EUR 7.5 million in local currency to LAPO MfB, a prominent pro-poor financial institution. The five-year loan will be used to offer funding to micro- and small-business clients in order to increase financial inclusion in the community.
What is the purpose of the funding?
Providing low-income Nigerians with long-term access to responsible financial services is the mission of LAPO MfB, which was established in 2009. When it comes to microfinance, Nigeria is still a young country, with over half of the population unable to access financial services at this time. This FMO credit facility would enable LAPO MfB to promote financial inclusion and the development of high-quality financial services in Nigeria, despite the fact that the company had given up on the aim of CPP certification.
Its headquarters are in Benin, with other offices in Lagos and other cities throughout Africa. It seeks to alleviate poverty by empowering low-income individuals socially and economically through the provision of access to long-term financial products and services.
Lapo provides unsecured loans up to NGN500,000 for small businesses and up to NGN5,000,000 for small and medium-sized enterprises (SMEs).
Individuals who do not have access to traditional financial institutions can obtain financial services through microfinance lending. The loans are designed for persons who have been judged “unbankable” by larger financial institutions in the past. Numerous borrowers have poor incomes, reside in rural areas, have no credit histories, or do not match the “conventional conditions” established by banks.
It is not appropriate to use microfinance loans in situations where debt or dependency is perpetuated. It is considered unethical to take out a loan in order to pay off another loan.
PROS
* A flexible repayment schedule
* Minimal paperwork
* All borrowers are insured for the duration of the loan term
CONS
Guarantors are required.
* Coverage is limited to the states of Lagos and Edo.
ELIGIBILITY
(national identification card, driver’s license, voter’s card, or international passport) 4 recent passport-size photographs of yourself with your current utility bill
Establish a list of your top priorities.
Identify your financial objectives before developing a financial strategy. We all desire to put money aside for our golden years. If you have children, you’re undoubtedly thinking about putting together a My-Pikin-and-I savings plan. Do you, on the other hand, intend to purchase a car by the end of the year?
It is vital to take into account both short- and long-term objectives. Take a trip with your family or surprise your parents with a special anniversary dinner.
The financial gurus advise that you “write out your goals and offer them to your financial counselor.” The more detailed you can be, the better. This guarantees that your strategy covers all of your bases.
Make an appointment with yourself for an annual review if you don’t have a consultant. This is an opportunity to reevaluate your objectives and financial situation. Your income and expenses, as well as your progress toward reaching your financial objectives, should all be reviewed. Have you received a raise? What has changed in terms of mortgage, electricity, and other expenses? How did you fare in terms of finances last year? What exactly happened?
Examine your financial objectives every time you experience one of those “Hallmark card” moments. College, a promotion, a marriage, or a move are all examples of life events that have an impact on one’s financial situation. If you haven’t reviewed your budget recently, something is amiss.
LAPO Microfinance Bank: Conclusion
Financial planning, according to experts, is important for everyone, not just those who are about to retire. It’s never too early to start thinking for the future. Make a plan, and remember to keep it up to date as events unfold.
