LSETF Micro Enterprise Loan Scheme for Business Owners in Lagos State
Are you a business owner in Lagos state Nigeria in need of financial assistance for your business? The LSETF Micro Enterprise Loan is here for you. This post will show you everything you ought to know and its requirements.
The LSETF Micro Enterprise loan is a loan product offered by the Lagos State Employment Trust Fund (LSETF) to support micro, small and medium-sized enterprises (MSMEs) in Lagos State. The loan is designed to provide access to affordable financing for MSMEs to enable them to expand their businesses, create jobs and contribute to the economic development of the state.
The LSETF Micro Enterprise Loan has been a successful initiative in supporting MSMEs in Lagos State. Since its launch in 2016, the loan has disbursed over N10 billion to over 10,000 MSMEs, creating over 50,000 jobs in the process. The loan has also helped to improve the financial performance of MSMEs and increase their contribution to the state’s economy.
The loan amount disbursed under the LSETF Micro Enterprise loan scheme can be utilized for various purposes, including but not limited to purchasing equipment, working capital, expanding business premises, hiring additional staff, and investing in technology or infrastructure improvements.
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Key Features of LSETF Micro Enterprise Loan
The LSETF Micro Enterprise loan is available to all business owners resident and operational in Lagos state.
The loan is offered at an interest rate of 9% per annum, which is significantly lower than the prevailing market rates for microfinance loans. It has a repayment period of up to 36 months, which allows MSMEs to spread out their payments and manage their cash flow more effectively.
No collateral required, making it accessible to MSMEs that may not have the assets to secure a traditional bank loan. The loan application process is simple and straightforward, and MSMEs can apply online or through any of the LSETF’s partner financial institutions.
Loan Requirements
To qualify for the LSETF Micro Enterprise loan, applicants typically need to meet certain eligibility criteria set by the Lagos State Employment Trust Fund. These criteria include:
- LASSRA ID
- Tax ID (LIRS)
- Valid government issued ID
- Bank Verification Number
- 2 passport photographs
- 6 months bank statement
- Business must be in existence for at least one year
Before applying for this LSETF Micro Enterprise loan, bear in mind that this is a loan and not a grant. You will be required to pay back in the stipulated time frame. Failure to do so may attract some consequences.
Borrowers are typically required to repay the loan according to the agreed-upon terms and schedule. Timely repayment is crucial not only for maintaining a good credit history but also for ensuring the sustainability of the fund to support future entrepreneurs.
How to Apply
Interested entrepreneurs can typically apply for the LSETF Micro Enterprise loan by visiting the official website of the Lagos State Employment Trust Fund at https://loans.lsetf.ng/. The application process involves filling out the application form appropriately and providing all the necessary documents.