Raising fund to keep a business up and running is not always an easy task especially with the current economic challenge facing the country where the phrase “no money” has become our second national anthem for both rich and poor, making it even more difficult for SME’s to obtain loan and of course as a Nigerian, you already know that the bank is not an option because of their endless demands for collateral but we are not here to discuss problems rather, to give you a solution on how to get loan for your SME business.
In this post, I will review three organisations in Nigeria today that is willing to give you loan as an SME.
Table of Contents
Read: HOW TO START A SMALL SCALE BUSINESS WITHOUT CAPITAL
1. LAPO:
the Lapo group is a microfinance institution that has been giving out loans for more than four years now and they are still in the business of giving out loans even as am writing this post.
Getting loan from Lapo
In other to get a loan from the Lapo microfinance bank, you simply have to locate their co-operative around your area and register with them with a little sum of money which will be used for your account opening and the other part will be deposited into your account .
After registration, you will get your loan within 2 to 3 weeks (their first loan is usually #60,000) and you start returning the agreed percentage which is usually between #2,500- #3,000 after one week until 30-35 weeks(out of the #2500, #200 goes into your savings and you can collect this at the end of the day ).
Read: 10 BUSINESSES YOU CAN START WITH LESS THAN 20,000 Naira
2. GROOMING CENTER:
Although they are new but just like LAPO group , grooming center require a registration with the co-operative members around your business area with the registration fee of #7,500 ( as at the time of this post) which include account opening and initial deposit into the account .
Although they are new but just like LAPO group , grooming center require a registration with the co-operative members around your business area with the registration fee of #7,500 ( as at the time of this post) which include account opening and initial deposit into the account .
As at the time of this post they allow people to come together and form their own group then interact them as a group to register and get their loan after a week of completing the process (takes less than a week ) .
They issue an initial loan of #50,000 and members are entitled to individual loan which can run into hundred of thousands plus loan to buy equipment like fridge,freezer, gas cooker etc.
The refund for Grooming center starts within 2 to 3 weeks and last up to 23-25 weeks .
you can return #2700 every week out of which #500 goes into your savings account.
Read: USE YOUR BRAIN NOT YOUR HANDS
3. MIDLAND MICRO FINANCE BANK:
The middle loan is a bit more complicated compared to the other two listed above because here they deal with the individual and require you to open an account and service it for few months before you can get a loan.
Their loan ranges from #100,000 and above depending on the agreement and you are required to start returning after 2 months or more depending kind of business.
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Haven listed the three major platforms through which you can easily access loan for your SME business, I would love to add that; you can also get loan through your age group or social club if they permit such.
NOTE: before collecting loan from any of the listed organisation , calculate the interest and because the interest and because you are okay with it.
You can do this by multiplying the amount you are to return pre week with the total member of weeks to return the money ,e.g if you are to return #2500 pre week for a loan of #50,000 in 25 weeks , this should be #2500 x 25 = #62,500.
Best wishes, as you run a successful business.
Do you have any suggestion/ recommendation, please use the comment box below and questions are welcomed.
