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Microfinance Bank

NIRSAL Facilitates N128B Loans For Agribusinesses

Published

3 years ago

on

NIRSAL Microfinance Bank- Investors King

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending says it has about three million farmers on its database and has facilitated over N128 billion for agriculture and agribusiness across the country since its inception.

The Managing Director/CEO of the agency, Aliyu Abdulhameed, made this known in Akpabuyo during the agency’s Credit Risk Guarantee-backed project launch with Gbagolo Farm Ltd and TOAJ Nigeria Ltd.

NIRSAL guaranteed a total commercial bank loan of N81.8m from Union Bank to Gbagolo Farm Limited involved in poultry production, with NIRSAL credit guarantee cover of 50 percent, while the agency also guaranteed a total commercial bank loan of N150m from Sterling Bank to TOAJ Nigeria Limited involved in cocoa sourcing, aggregating and sales with NIRSAL credit guarantee cover of 50 percent.

While Gbagolo Integrated Farms Limited will use its N81.8 million Term Loan to finance the purchase of 25,000 points of lay birds, 25,000 capacity battery cages and feeding complements, TOAJ Nigeria Limited will channel its N150m Export/Trade Finance facility towards the sourcing and purchase of cocoa for export, Abdulhameed said.

He added that both projects were testaments to the fact that NIRSAL Plc in its bid to realize its vision of transforming the economy supported all sizes of businesses, whether small, medium, or large across the length and breadth of the country.

He added that, as a guarantor, NIRSAL Plc’s intervention positively impacted both the lender and the borrower, as well as the overall economy.

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Microfinance Bank

LAPO Microfinance Bank Wins 9th Consecutive “Microfinance Bank of The Year” Award at BAFI 2023

Published

6 months ago

on

October 31, 2023

By

LAPO Microfinance Bank has been honored with the prestigious “Microfinance Bank of The Year” award for the 9th consecutive year at the 2023 Businessday & other Financial Institutions (BAFI) Awards.

This remarkable achievement underscores the bank’s steadfast commitment to social and economic empowerment for low-income households and micro, small, and medium enterprise (MSME) owners across Nigeria.

For over three decades, LAPO Microfinance Bank has diligently pursued its core mission of uplifting communities and fostering economic prosperity, and this latest accolade reaffirms their consistent efforts.

This award recognizes LAPO’s outstanding contributions to the microfinance sector and its pivotal role in improving the livelihoods of countless individuals and businesses.

The management of LAPO expressed deep gratitude to Businessday media, the organizers of the BAFI awards, and extended their dedication to the bank’s staff and clients.

They recognize that this accomplishment would not have been possible without the collective contributions of these invaluable stakeholders, who have been instrumental in the enduring success of LAPO Microfinance Bank.

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Microfinance Bank

Lapo Ussd Code for Loans, Repayment and More

All they need to do is to follow Lapo Microfinance Bank’s instructions on how to borrow a loan or perform other transactions once they dial *371#.

Published

2 years ago

on

June 5, 2022

By

Loan - Investors King

Lapo USSD Code allows instant transactions for all customers of Lapo microfinance bank. These transactions include loan procurement, repayment, savings account opening and many more.

An Unstructured Supplementary Service Data (USSD) code is a mobile phone or SIM card programmed code that ensures instant financial transactions without a smartphone or internet connection, Investors King reports.

Lapo USSD Code is *371#

With the Lapo USSD code, customers of Lapo Microfinance Bank can repay their loans, apply for loans and make other transactions.

All they need to do is to follow Lapo Microfinance Bank’s instructions on how to borrow a loan or perform other transactions once they dial *371#.

It is imperative to note that to use Lapo USSD Code your bank will charge you N6 as agreed by Nigerian regulators and telecommunications companies.

Lapo Microfinance Bank Loan Types

According to information available on the Lapo Microfinance Bank website, Lapo loans attract a nominal interest rate of 2.5% and above. However, it is imperative to double-check with the lender before taking any of the microfinance bank loans to avoid issues.

Lapo Microfinance Bank offers loans from N10,000 to 5 million for ordinary consumption and for Small and Medium Enterprises, projects, assets, buildings, etc. Below are the type of loans Lapo Microfinance Bank offers.

Small and Medium Enterprises (SME) Loan

As stated above, small and medium businesses can access as much as N5 million loan or credit facility to expand their businesses. Please note that SME loans apply to all sectors.

It is important to note that this particular loan is specifically designed to support small businesses operating in Nigeria. Meaning that bigger establishments with more capital needs will need to look into other categories.

SMEs Loan Features

  • Facility amount up to N5,000,000
  • Methodology: Individual
  • Duration: 12 months

SMEs Loan Benefits

  • No collateral
  • Access to funds for business expansion
  • Flexible repayment structure
  • Training on basic financial management, business planning and customer relations
  • Expert financial advice is available

SMEs Loan Documentation

  • Loan application letter
  • Duly completed application form
  • 2 guarantors
  • A valid means of ID (national ID, driver’s license, voter’s card or international passport)
  • Current utility bill
  • 4 recent passport-size photographs

Agricultural Loan

Lapo Microfinance Loan also makes provision for Agricultural financing. Farmers across Nigeria can approach any Lapo Microfinance Bank for a loan size between N30,000 to N1,000,000.

For more details regarding Agricultural Loan contact the lender’s Customer Service center

Features

  • Facility range: N50,000 (minimum) to N500,000 (maximum)
  • Methodology: Individual, group and corporate
  • Duration: 1-12 months
  • Grace period: 30-60 days
  • Prospective clients must be practicing farmers with verifiable evidence of existing farm investments.

Benefits

  • No collateral
  • Provides capital for farming activities
  • Flexible repayment structure
  • Low interest rate
  • Expert financial advice available

Documentation

  • Duly completed application form
  • 2 guarantors
  • 2 recent passport-size photographs
  • Current utility bill
  • A valid means of ID (national ID, driver’s license, voter’s card or international passport)

Regular Loan

This loan product is designed to operate on a group (union) methodology. A union is a self-selected group of people who access loans individually, but have group guarantees. Regular Loan is created to help meet the working capital needs of clients that run small businesses.

Features

  • Facility range: N30,000 (minimum) to N150,000 (maximum)
  • Methodology: Individual lending but group liability
  • Duration: 8 months
  • Charitable Trusts
  • Grace period: 2 weeks
  • Repayment frequency: Weekly
  • Clients must belong to a union

Benefits

  • No collateral
  • Access to funds for business expansion
  • Access to other business loan products to strengthen client’s enterprise, e.g. Mid-term and Asset loan
  • Flexible repayment structure
  • Training on basic financial management, business planning and customer relations
  • Low interest rate
  • Expert financial advice available

Documentation

  • Duly completed application form
  • 2 guarantors
  • 2 recent passport-size photographs
  • Current electricity bill
  • A valid means of ID (national ID, driver’s license, voter’s card or international passport)

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Microfinance Bank

Nigerian Microfinance Bank Subsector Assigns 3.0 Risk Score

Published

2 years ago

on

May 24, 2022

By

Global Banking - Investors King

The Nigerian Microfinance Bank (MFB) subsector has been assigned a financial institutions risk score of 3.0, 0.5 below the 3.5 assigned for Nigerian Deposit Money Banks (DMBs).

According to the GCR rating, the 0.5 difference was necessary to reflect the disparities in terms of weaker governance, different accounting standards/Basel adoption, lower barriers to entry, lack of access to Central Bank of Nigeria (CBN) funding and other external funding sources.

Also, asset quality tends to be weaker for the MFBs given their exposures to largely the informal sector. Total number of licensed players have been quite volatile as players are usually susceptible to license withdrawals by the CBN, with anticipation for further reduction in the players due to ongoing recapitalisation.

Positively, MFBs are not exposed to foreign exchange risk like the DMBs, and loan portfolio is usually well diversified.

Explaining the modalities for its rating, GCR stated that the Financial Institutions’ sector risk score (ranging from 0 to 15) is a key factor in the operating environment component score.

The core of the GCR Ratings Framework is based on GCR’s opinion that an entity’s operating environment largely frames its creditworthiness. As a result, the operating environment analysis anchors the underlying risk score for the GCR rating methodology.

GCR combines elements of the country risk and sectoral risk analysis, blended across countries for entities operating across multiple jurisdictions, to anchor an insurer to its current operating conditions. For more details on the above, please read the related criteria and research listed below.

 

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