₦airaland Forum

LAPO microfinance bank who claims to help the poor, is number one exploiter of the poor and illiterates.

Scenario: You borrow N100,000; with a monthly interest rate of 2.2% and another 1% imonthly contribution

Before you are given the loan, you pay administrative fee of 10% and insurance fee of 0.5%. Assuming you choose a tenor of 6 months, here is the break down of everything on N100,000 loan.
Admin fee is 10% of N100,000 = 10,000

Insurance fee is 0.5% of N100,000 =N500.

You must pay N10,500 Upfront before you're given the N100,000.

After you are given the loan, this is what you would be paying monthly:

2.2% x6 months x N100,000 =

13,2% X N100,000 = N13,200 interest

plus

1% monthly contribution is 6% for the 6 months tenor

6% X N100,000 = N6,000

So, add the loan, the interest and the minthly contributions

You get N (100,000+13,200+6,000)

= N119,200

Your monthly instalment is N119,200/6

= N19,867
N119,200 +N10 ,500 (Admin/insurance

= N129,700.
You pay N29,700 interest on N100,000 Loan in 6 months

29.7% interest rates in 6 months and approx 60% annually.

LAPO LAPO, tell me how you lift prople out of poverty whereas you are making them poorer.

I don't understand you op. How are they exploiting the poor here? Who will give you such loan of N100,000 for a period of 6 months (half a year) with Less than N30,000 interest? Remember that it's even without any form of collateral.
Haba, you can't just choose to rubbish people's name just like that. Please give a name of any other financial institution that gives a better deal to the poor then we can all know that LAPO is indeed exploiting them.

Its fair enough, if you really need it for an urgent business. Op, chill!

The problem is not with the interest rate, that I can see is considerate. The problem is repayment, how can you be paying same interest along 10% of capital every month.

If for instance I take 100k for 10 months, after the first month, since 10% of the capital is returned, the percentage for next repayment should be determined based on the remaining capital not the previous.

The capital is what brings the interest, when it is reduced, it should affect the interst.

Well done op.
As for me am looking for 1million at abt 30% interst ratr per annum. I even get colateral, still I know get.
He who get cap no get head, he who get head no get cap

walexy100:
LAPO microfinance bank who claims to help the poor, is number one exploiter of the poor and illiterates.

Scenario: You borrow N100,000; with a monthly interest rate of 2.2% and another 1% imonthly contribution

Before you are given the loan, you pay administrative fee of 10% and insurance fee of 0.5%. Assuming you choose a tenor of 6 months, here is the break down of everything on N100,000 loan.
Admin fee is 10% of N100,000 = 10,000

Insurance fee is 0.5% of N100,000 =N500.

You must pay N10,500 Upfront before you're given the N100,000.

After you are given the loan, this is what you would be paying monthly:

2.2% x6 months x N100,000 =

13,2% X N100,000 = N13,200 interest

plus

1% monthly contribution is 6% for the 6 months tenor

6% X N100,000 = N6,000

So, add the loan, the interest and the minthly contributions

You get N (100,000+13,200+6,000)

= N119,200

Your monthly instalment is N119,200/6

= N19,867
N119,200 +N10 ,500 (Admin/insurance

= N129,700.
You pay N29,700 interest on N100,000 Loan in 6 months

29.7% interest rates in 6 months and approx 60% annually.

LAPO LAPO, tell me how you lift prople out of poverty whereas you are making them poorer.

What are you talking about?
It is a high risk loan... Most MFBs give out loans that are rated high risks because there is no collateral or a gaurantor and the chances of default is deemed high... There is a baseline and a cap on maximum you can borrow, once you build a credit history with most of them, you get better rates on subsequent facility.... The first few you pay through your noses, you just need to be sensible so you can pass the cost on for whatever purpose you need the loan for, as to cushion the financial impact.....
My only issue is that anything charged should be made clear in black and white, no hidden or spurious charges, simple!!

LAPO microfinance bank who claims to help the poor, is number one exploiter of the poor and illiterates.

Scenario: You borrow N100,000; with a monthly interest rate of 2.2% and another 1% imonthly contribution

Before you are given the loan, you pay administrative fee of 10% and insurance fee of 0.5%. Assuming you choose a tenor of 6 months, here is the break down of everything on N100,000 loan.
Admin fee is 10% of N100,000 = 10,000

Insurance fee is 0.5% of N100,000 =N500.

You must pay N10,500 Upfront before you're given the N100,000.

After you are given the loan, this is what you would be paying monthly:

2.2% x6 months x N100,000 =

13,2% X N100,000 = N13,200 interest

plus

1% monthly contribution is 6% for the 6 months tenor

6% X N100,000 = N6,000

So, add the loan, the interest and the minthly contributions

You get N (100,000+13,200+6,000)

= N119,200

Your monthly instalment is N119,200/6

= N19,867
N119,200 +N10 ,500 (Admin/insurance

= N129,700.
You pay N29,700 interest on N100,000 Loan in 6 months

29.7% interest rates in 6 months and approx 60% annually.

LAPO LAPO, tell me how you lift prople out of poverty whereas you are making them poorer.

Your calculations are flawed. I don't work at LAPO bt the way. I am not biased

LAPO microfinance bank who claims to help the poor, is number one exploiter of the poor and illiterates.

Scenario: You borrow N100,000; with a monthly interest rate of 2.2% and another 1% imonthly contribution

Before you are given the loan, you pay administrative fee of 10% and insurance fee of 0.5%. Assuming you choose a tenor of 6 months, here is the break down of everything on N100,000 loan.
Admin fee is 10% of N100,000 = 10,000

Insurance fee is 0.5% of N100,000 =N500.

You must pay N10,500 Upfront before you're given the N100,000.

After you are given the loan, this is what you would be paying monthly:

2.2% x6 months x N100,000 =

13,2% X N100,000 = N13,200 interest

plus

1% monthly contribution is 6% for the 6 months tenor

6% X N100,000 = N6,000

So, add the loan, the interest and the minthly contributions

You get N (100,000+13,200+6,000)

= N119,200

Your monthly instalment is N119,200/6

= N19,867
N119,200 +N10 ,500 (Admin/insurance

= N129,700.
You pay N29,700 interest on N100,000 Loan in 6 months

29.7% interest rates in 6 months and approx 60% annually.

LAPO LAPO, tell me how you lift prople out of poverty whereas you are making them poorer.

Your calculations are flawed. I don't work at LAPO by the way. I am not biased

If you are a salary earner who is based in Lagos you may contact us for short term loans.

LAPO microfinance bank who claims to help the poor, is number one exploiter of the poor and illiterates.

Scenario: You borrow N100,000; with a monthly interest rate of 2.2% and another 1% imonthly contribution

Before you are given the loan, you pay administrative fee of 10% and insurance fee of 0.5%. Assuming you choose a tenor of 6 months, here is the break down of everything on N100,000 loan.
Admin fee is 10% of N100,000 = 10,000

Insurance fee is 0.5% of N100,000 =N500.

You must pay N10,500 Upfront before you're given the N100,000.

After you are given the loan, this is what you would be paying monthly:

2.2% x6 months x N100,000 =

13,2% X N100,000 = N13,200 interest

plus

1% monthly contribution is 6% for the 6 months tenor

6% X N100,000 = N6,000

So, add the loan, the interest and the minthly contributions

You get N (100,000+13,200+6,000)

= N119,200

Your monthly instalment is N119,200/6

= N19,867
N119,200 +N10 ,500 (Admin/insurance

= N129,700.
You pay N29,700 interest on N100,000 Loan in 6 months

29.7% interest rates in 6 months and approx 60% annually.

LAPO LAPO, tell me how you lift prople out of poverty whereas you are making them poorer.

I doubt if you have any idea the type of difficulties microfinance banks face when its time to recover their loans

[quote author=FinanceHub post=95603173]If you are a salary earner who is based in Lagos you may contact us for short term loans.[/quote

I need loan]

No loan easy be it Commercial bank or other sources

GentleNick:
I don't understand you op. How are they exploiting the poor here? Who will give you such loan of N100,000 for a period of 6 months (half a year) with Less than N30,000 interest? Remember that it's even without any form of collateral.
Haba, you can't just choose to rubbish people's name just like that. Please give a name of any other financial institution that gives a better deal to the poor then we can all know that LAPO is indeed exploiting them.

The OP is obviously a child who have not ventured into nigeria business space or a civil servant living solely on salary. When he faces the nigerian business reality he would discover that LAPO is more beneficial than federal government to business onwers whi need their services.