The Nigerian banking system has always been tagged as a system that retards rural development and is harmful to SMEs. Several examples exist to underscore this, ranging from the high interest rates on loans, refusal to give loans without collateral, and absence of moratorium when loans are given out. Big banks are typically guilty of these. But what most people don't know is that even so-called "SME-friendly" microfinance banks are equally terrible and guilty of the above. In fact, the case of the popular LAPO Microfinance Bank is particularly more annoying and terrible.

Microfinance banks are typically setup as grassroots financial institutions to provide some banking service to people that are effectively covered by conventional banks. I'll spare you the nitty-gritty of what they do, but just know that they are supposed to be way friendlier than traditional banks to SMEs and people of kow income.

However that's not the case with LAPO. Instead, LAPO runs a parasitic banking system in rural locations that is equivalent to loan-sharking or usury. But don't take my word for it, keep reading.

When a person loans money from LAPO, LAPO requires that person to bring a guarantor to ascertain the credit-worthiness of the borrower. This offsets the fact that they don't request for collateral. And truthfully, it's not a bad thing. But the next part is, keep reading...

LAPO doesn't give a grace period (moratorium). LAPO wants its money, with its interest, paid every week beginning from the very next week after they loaned you the money. #LoanSharking! They don't care when the returns on the business you loaned money for will start coming. Meanwhile, all business, big or small, do not make returns immediately. But LAPO doesn't care!

Like a loan shark, the very day LAPO expects you to start paying, and you don't show up after even a few minutes, you get a visit of embarrassment. LAPO staff specialize in embarrassing customers who are yet to pay their debt or are late to pay their debt by even one minute. That's right! They'll gather themselves like a swarm of bees and march down to the borrower's house or shop (because they know their customers extremely well). They'll cause rancour and commotion, and some of them with the nuts in their brains unscrewed, would even try to fight the customer. That embarrassment would continue for that week until the customer pays.

And to top it off, the interest rates on these loans ain't cheap or low! It freaking above 30% or thereabout! What the hell! But most people in the rural areas have no choice. Even shop owners in Lagos use their services because the traditional banks won't loan them a dime. And even if they wanted to, tomatoes, frozen fishes and other perishable items the people sell can't serve as collateral. So the LAPO loan sharks win!

Most people I spoke with about LAPO often criticise the bank as being devilish, exploitative, etc. One person said "those people dey use juju. The minute you borrow money from them, you no go know wetin you use the money do. Before you know, you don turn debtor".

Although nobody forced anybody to borrow from LAPO, it is still terrible how they operate. So if you know anybody "banking" with LAPO, advise that person to pull out and never return, or else na so so gbese they go dey enter oooo....

https://abubaka./2017/03/26/lapo-microfinance-bank-is-a-devilish-loan-shark/

That's not true. Lapo is a world renowned mfb. Micro loans are not for all types of business. Lots of people borrow Lapo funds to pay rents and school fees without investing in money making Ventures that bring daily returns

Hahahhaa Lapo, Credit Direct, and of course all banking and lending institutions are Shylock.

You go to them at your risk.

obua:
That's not true. Lapo is a world renowned mfb. Micro loans are not for all types of business. Lots of people borrow Lapo funds to pay rents and school fees without investing in money making Ventures that bring daily returns

To the best of my knowledge, depending on the amount borrowed, LAPO expects start to collecting its money within a maximum of 30 days with interest.
So if a person borrows for rent, not bad. But what about the small business owners. Though some make some money to meet weekly payouts, but the hassle LAPO staff put on them is just overwhelming.
My own argument is that the absence of moratorium and the unprofessional nature of LAPO staff causes trouble for customers...

If you must take loans from lapo and you know you have to start payments the next week, then common sense should Tell you to invest in a business with daily or weekly returns. I know people who take loans from lapo and I have come to the conclusion that most of them take loans that their businesses do not have the capacity to pay back from its profits. Why should you take a loan of N700k when you can't use your own N200k wisely? Some use their businesses as a front and take such loans to buy cars or lands or build houses, when the money is not invested in your business, how do you plan to meet up with the weekly payments from a business that could previously not buy you that car.

FYI, there are so many other micro finance banks that give interests of 3% to 5%. Do your research, ask questions, there is so much going on under our noses that we are not aware of.

egopersonified:
If you must take loans from lapo and you know you have to start payments the next week, then common sense should Tell you to invest in a business with daily or weekly returns. I know people who take loans from lapo and I have come to the conclusion that most of them take loans that their businesses do not have the capacity to pay back from its profits. Why should you take a loan of N700k when you can't use your own N200k wisely? Some use their businesses as a front and take such loans to buy cars or lands or build houses, when the money is not invested in your business, how do you plan to meet up with the weekly payments from a business that could previously not buy you that car.

FYI, there are so many other micro finance banks that give interests of 3% to 5%. Do your research, ask questions, there is so much going on under our noses that we are not aware of.

Valid points. But I didn't say that there weren't other microfinance banks that offered lower interest rates, I only focused on this one because of the unprofessional way their staff treat defaulters. And also to beam the light at the problems people are facing because of lack of grace periods for debt payment.

Lakpo ke

Lapo is an old heartless fraud.

Part of the reason my previous employers wound up.

#jabiLakeTrap

.

true talk LAPO is devilish very very, I was a victim in their Loan issues but God power pass devil own 100times.the don't have human sympathy at all if you are sick or in a Coma u must pay Lapo money the don't care. the use juju to loan money. infact the are very very wicked the will use sweet coated mouth to tell you to come and collect money from their bank.But to pay money na war God go punish them.very soon their cup go full all d money juju chop go go to d owners RUBBISH.

Disclaimer:
I'm not connected to LAPO in any way, I'm not their staff, I've never borrow or have anything doing what so ever with them. Only that I've been seeing their branches all over the places and I knew them as a registered financial institution.

@op, permit me to contribute my own view to the issue you raised. I don't think lapo is devilish as you opined, anything bank loans generally is not business friendly presently in Nigeria, be it commercial or microfinance banks. Look at the CBN policy monitary rate (MPR) at 14%, then what do you expect from other financial institutions? Though the difference is clear when you compare the lending rate of commercial banks to that of microfinance banks; yet go and check the bad loans history of commercial banks as well, can we now says commercial bank loans are devilish also for some business not to be able to repay their loans as well?
To every loan granted by either of the banks; there is an iota of risk. But microfinance loan by nature was designed mainly for existing petty trades and business, not for start up businesss, it's actually for business expansion; that's why LAPO will be expecting you a week after the loan was granted for your instalmental repayment and can't grant moratorium. Because the idea is you're already trading and making money daily or weekly before loan, so getting loan give you an opportunity to by more stocks through which you can be paying back gradually. But, financial indiscipline, loan diversion, bad characters in the side of some individuals and so on has been a major threat to loan repayment, apart from some fraudsters that do hide under the umbrella of microfinance banking to perpetrate their evil act, try to check how many microfinance banks that closed down in Nigeria due to bad loans and their inability to meet up with their financial obligations due to the lost they've suffered and put yourself in their shoes.

@egopersonified
explain ur last paragraph

abubaka101:
[s]The Nigerian banking system has always been tagged as a system that retards rural development and is harmful to SMEs. Several examples exist to underscore this, ranging from the high interest rates on loans, refusal to give loans without collateral, and absence of moratorium when loans are given out. Big banks are typically guilty of these. But what most people don't know is that even so-called "SME-friendly" microfinance banks are equally terrible and guilty of the above. In fact, the case of the popular LAPO Microfinance Bank is particularly more annoying and terrible.

Microfinance banks are typically setup as grassroots financial institutions to provide some banking service to people that are effectively covered by conventional banks. I'll spare you the nitty-gritty of what they do, but just know that they are supposed to be way friendlier than traditional banks to SMEs and people of kow income.

However that's not the case with LAPO. Instead, LAPO runs a parasitic banking system in rural locations that is equivalent to loan-sharking or usury. But don't take my word for it, keep reading.

When a person loans money from LAPO, LAPO requires that person to bring a guarantor to ascertain the credit-worthiness of the borrower. This offsets the fact that they don't request for collateral. And truthfully, it's not a bad thing. But the next part is, keep reading...

LAPO doesn't give a grace period (moratorium). LAPO wants its money, with its interest, paid every week beginning from the very next week after they loaned you the money. #LoanSharking! They don't care when the returns on the business you loaned money for will start coming. Meanwhile, all business, big or small, do not make returns immediately. But LAPO doesn't care!

Like a loan shark, the very day LAPO expects you to start paying, and you don't show up after even a few minutes, you get a visit of embarrassment. LAPO staff specialize in embarrassing customers who are yet to pay their debt or are late to pay their debt by even one minute. That's right! They'll gather themselves like a swarm of bees and march down to the borrower's house or shop (because they know their customers extremely well). They'll cause rancour and commotion, and some of them with the nuts in their brains unscrewed, would even try to fight the customer. That embarrassment would continue for that week until the customer pays.

And to top it off, the interest rates on these loans ain't cheap or low! It freaking above 30% or thereabout! What the hell! But most people in the rural areas have no choice. Even shop owners in Lagos use their services because the traditional banks won't loan them a dime. And even if they wanted to, tomatoes, frozen fishes and other perishable items the people sell can't serve as collateral. So the LAPO loan sharks win!

Most people I spoke with about LAPO often criticise the bank as being devilish, exploitative, etc. One person said "those people dey use juju. The minute you borrow money from them, you no go know wetin you use the money do. Before you know, you don turn debtor".

Although nobody forced anybody to borrow from LAPO, it is still terrible how they operate. So if you know anybody "banking" with LAPO, advise that person to pull out and never return, or else na so so gbese they go dey enter oooo....

https://abubaka./2017/03/26/lapo-microfinance-bank-is-a-devilish-loan-shark/[/s]

this is a big lie! LAPO operates different types of financial assistance(loan) which includes; money lending, asset financing.
Money Lending is of 2parts:
1. Weekly Loan: You need to join a group or form a new one, you will be given a loan without any collateral & interest rate is 18% of amount borrowed. You will not pay a kobo the following after the loan grant but after 2weeks.
2. Monthly Loan: You only repay your loan each month after loan grant. You need to have a viable business & civil servant to stand as your guarantor.

Asset Finacing
You only need to visit Lapo office & request for asset financing, you will be guided through the process. You need 2 guarantor which includes anybody & at least a civil servant. Repayment is on monthly & interest rate is 18%.


THE ONLY WICKED MFB IS SEAP.

Get your fact right please

Pls who ever know any one in Lapp shld pls contact my on 08131360160.
I need a loan of 1million and I have collateral

router123:
Pls who ever know any one in Lapp shld pls contact my on 08131360160.
I need a loan of 1million and I have collateral

No be say na curse, dem no go give you because they know say that money go help change your condition.

Na like N10k dem go take hold people captive.

psucc:
No be say na curse, dem no go give you because they know say that money go help change your condition.

Na like N10k dem go take hold people captive.

Na serious matter here ooo
Any Lapo agent or any financial assistant company. I need 1 million and am dropping a collateral worth ten times the amount (a landed property) so I can't run.
I need d money for a period of 12 months.
I will be paying it off monthly with reasonable interest.
Thanks

08131360160

LAPO is a Devil,I was a victim before I rushed out..U can't succeed with Lapo

abubaka101:

To the best of my knowledge, depending on the amount borrowed, LAPO expects start to collecting its money within a maximum of 30 days with interest.
So if a person borrows for rent, not bad. But what about the small business owners. Though some make some money to meet weekly payouts, but the hassle LAPO staff put on them is just overwhelming.
My own argument is that the absence of moratorium and the unprofessional nature of LAPO staff causes trouble for customers...

They no longer send their staff. They now have small group of loanies who have a head. The head collects weekly returns from group members and send the money to workers at LAPO

abubaka101:
The Nigerian banking system has always been tagged as a system that retards rural development and is harmful to SMEs. Several examples exist to underscore this, ranging from the high interest rates on loans, refusal to give loans without collateral, and absence of moratorium when loans are given out. Big banks are typically guilty of these. But what most people don't know is that even so-called "SME-friendly" microfinance banks are equally terrible and guilty of the above. In fact, the case of the popular LAPO Microfinance Bank is particularly more annoying and terrible.

Microfinance banks are typically setup as grassroots financial institutions to provide some banking service to people that are effectively covered by conventional banks. I'll spare you the nitty-gritty of what they do, but just know that they are supposed to be way friendlier than traditional banks to SMEs and people of kow income.

However that's not the case with LAPO. Instead, LAPO runs a parasitic banking system in rural locations that is equivalent to loan-sharking or usury. But don't take my word for it, keep reading.

When a person loans money from LAPO, LAPO requires that person to bring a guarantor to ascertain the credit-worthiness of the borrower. This offsets the fact that they don't request for collateral. And truthfully, it's not a bad thing. But the next part is, keep reading...

LAPO doesn't give a grace period (moratorium). LAPO wants its money, with its interest, paid every week beginning from the very next week after they loaned you the money. #LoanSharking! They don't care when the returns on the business you loaned money for will start coming. Meanwhile, all business, big or small, do not make returns immediately. But LAPO doesn't care!

Like a loan shark, the very day LAPO expects you to start paying, and you don't show up after even a few minutes, you get a visit of embarrassment. LAPO staff specialize in embarrassing customers who are yet to pay their debt or are late to pay their debt by even one minute. That's right! They'll gather themselves like a swarm of bees and march down to the borrower's house or shop (because they know their customers extremely well). They'll cause rancour and commotion, and some of them with the nuts in their brains unscrewed, would even try to fight the customer. That embarrassment would continue for that week until the customer pays.

And to top it off, the interest rates on these loans ain't cheap or low! It freaking above 30% or thereabout! What the hell! But most people in the rural areas have no choice. Even shop owners in Lagos use their services because the traditional banks won't loan them a dime. And even if they wanted to, tomatoes, frozen fishes and other perishable items the people sell can't serve as collateral. So the LAPO loan sharks win!

Most people I spoke with about LAPO often criticise the bank as being devilish, exploitative, etc. One person said "those people dey use juju. The minute you borrow money from them, you no go know wetin you use the money do. Before you know, you don turn debtor".

Although nobody forced anybody to borrow from LAPO, it is still terrible how they operate. So if you know anybody "banking" with LAPO, advise that person to pull out and never return, or else na so so gbese they go dey enter oooo....

https://abubaka./2017/03/26/lapo-microfinance-bank-is-a-devilish-loan-shark/

How do I get this Lapo loan

Wait.....I hope they will call me first before giving me loan.

I just filled an online form requesting for loan. Make e no be say I wake up tomorrow see money for my account ooo.

All this one wey I hear, fear catch me

I need a loan of 200k I will be paying 20k weekly for 12weeks totalling 240k I do not have collateral if you are ready to help no cap let do business

INTEGRITYA1:
Disclaimer:
I'm not connected to LAPO in any way, I'm not their staff, I've never borrow or have anything doing what so ever with them. Only that I've been seeing their branches all over the places and I knew them as a registered financial institution.

@op, permit me to contribute my own view to the issue you raised. I don't think lapo is devilish as you opined, anything bank loans generally is not business friendly presently in Nigeria, be it commercial or microfinance banks. Look at the CBN policy monitary rate (MPR) at 14%, then what do you expect from other financial institutions? Though the difference is clear when you compare the lending rate of commercial banks to that of microfinance banks; yet go and check the bad loans history of commercial banks as well, can we now says commercial bank loans are devilish also for some business not to be able to repay their loans as well?
To every loan granted by either of the banks; there is an iota of risk. But microfinance loan by nature was designed mainly for existing petty trades and business, not for start up businesss, it's actually for business expansion; that's why LAPO will be expecting you a week after the loan was granted for your instalmental repayment and can't grant moratorium. Because the idea is you're already trading and making money daily or weekly before loan, so getting loan give you an opportunity to by more stocks through which you can be paying back gradually. But, financial indiscipline, loan diversion, bad characters in the side of some individuals and so on has been a major threat to loan repayment, apart from some fraudsters that do hide under the umbrella of microfinance banking to perpetrate their evil act, try to check how many microfinance banks that closed down in Nigeria due to bad loans and their inability to meet up with their financial obligations due to the lost they've suffered and put yourself in their shoes.

You are damn on point.

One chilled green bottle for you my brother. 🍾👍🏿