Lagos State Government recently said it had dolled out over N100 billion to Micro, Small, and Medium Enterprises. Research conducted by our team shows that the state government is massively granting loans to small business owners in the commercial city.
If you’re not a Lagos resident, you can the list of other finding platforms that support SMEs in Nigeria, you find it at: https://infomediang.com/funding-business-owners-nigeria
The funds are being supervised by the Lagos State Employment Trust Fund, if you reside in Lagos, have LASSRA ID, have a valid government-issued identity card, Bank Verification Number (BVN), and you can provide evidence of tax payment to the LIRS, this is everything you need to know about LSETF loan and how you too can be one of the beneficiaries.
Aims of Lagos State Employment Trust Fund
The Lagos State Employment Trust Fund (LSETF) is an initiative of the Lagos State Government as a means to boost the Lagos economy by giving MSMEs based in the state to access finance
Some of its aims are:
1) The funding programme is designed to enable SMEs to access loans with low-interest rates for them to grow their businesses.
2) To enable business owners who are can show evidence of being residence in Lagos to apply and pay only a 9% interest rate per year.
3) To create an enabling environment for MSMEs to grow and expand through access to fund, for instance, anyone who received a LSETF loan of N500, 000 will pay N45, 000 as interest at the end of the year, that’s unbeatable compared to what’s obtainable in banks.
General Requirements:
- LASSRA Identity Card
- Tax ID by Lagos Internal Revenue Service
- Valid Government-Issued Identity Card
- Bank Verification Number
- Evidence of Company Incorporation (CAC Certificate)
- 2 passport photographs
- Notarized Guarantor Forms
- Training Certificate
Categories of funds under Lagos State Employment Trust Fund
- LSETF Micro-Enterprise Loan
- LSETF Micro Enterprise Start-Up Loan
- LSETF/EDFIN EDU loan
- Access Bank Micro-Enterprise Loan
- LSETF Small and Medium Size Enterprise Loan
- Micro-Enterprise Loan Renewal
- LSETF/Access Bank Women Entrepreneurs Fund (W-Initiative)
- Small And Medium Size Enterprise Loan Renewal
- LSETF/FIRST-EDU Loan
- MSME Recovery Fund
- LSETF/Access Bank Small And Medium Enterprise Loan for Female Business Owners
LSETF Micro-Enterprise Loan
Between N50,000 to N500,000
Maximum amount you can get: N500,000
Features:
- Loan Tenor: 12 MONTHS
- Moratorium: No
- Equity: 5% of loan size (it means you will have to deposit N25,000 if N500K is granted)
- Interest Rate: 9% per year (Pay N45,000 as interest if you got N500K)
Requirements
- LASSRA ID
- Valid government approved ID
- BVN
- LIRS Tax ID
- 2 Passport Photographs
- 6 months bank statement
- Business Existence: 1 year and above
LSETF Small and Medium Size Enterprise Loan
Between N500,000 to N5,000,000 per business
Features
- Tenor: Between 24 to 36 months
- Equity: 5% of loan size (deposit N250,000 if your N5M application is granted)
- Interest Rate: 9% per annum ( (Pay N450,000 as interest if you got N5,000,000)
Criteria
- LASSRA ID
- LIRS Tax ID
- Government valid ID Card
- FIRS Tax Identification Number
- Evidence of business registration from Corporate Affairs Commission
- Bank Verification Number
- 2 passports
- 12 months corporate bank statement
- Business existence: Not less than one year
LSETF Micro Enterprise Start Up Loan
Between N50,000 to N250,000
Features
- Tenor: 12 to 15 months
- Moratorium: 3 months
- Equity: 5% of loan size (it means you will have to deposit the sum of N12,500 if your N250,000 application is approved)
- Interest Rate: 9% per year (Pay N22,500 as interest if you got N250,000)
Eligibility
- Lagos-recognized Vocational Certificate
- LASSRA ID
- Tax ID from LIRS
- Valid government ID
- BVN
- Passport Photographs (2)
LSETF/FIRST-EDU Loan
It is designed to boost the operation of private schools in Lagos State, under this loan, a private school can get between N500,000 to N5,000,000
Features
- Tenor: Between 12 to 24 months
- Equity: 5% of loan size
- Interest Rate: 9% Per annum
Requirements
- Minimum of 50 students enrolled
- 12 months corporate bank statement
- Evidence of registration with CAC
- Not below 12 months of operation
- LASSRA ID
- LIRS Tax ID
- Government approved ID of the proprietor
- TIN number from FIRS
- BVN of founder
- 2 passport photographs
LSETF/Access Bank Women Entrepreneurs Fund (W-Initiative)
Also called LSETF/Access Bank Micro Enterprise Start Up Loan, an applicant can get between N50,000 to N250,000
Features
- Exclusive for female business owners in Lagos.
- Tenor: Between 12 to 15month
- Moratorium: 3 months
- Equity: 5% of the loan size
- Interest Rate: 10% per annum
Requirements
- A vocational certificate recognised by Lagos state
- LASSRA ID
- Bank Verification Number
- LIRS Tax ID
- Valid Government Identity Card
- 2 Passport Photographs
LSETF/Access Bank Small And Medium Enterprise Loan for Female Business Owners
This is designed to cater for the financial need of female business owners operating and residing in Lagos
Access to at least N500,000
Maximum amount: N5,000,000
Features
- Tenor: 24 to 36 months
- Equity: 5% of loan size
- Interest Rate: 10% per annum
Requirements
- 12 months corporate bank statement
- 2 passport photographs
- LASSRA ID
- LIRS Tax ID
- Valid Government ID card
- FIRS Tax Identification Number
- Evidence of CAC registration
- Business operation for at least a year
Micro-Enterprise Loan Renewal
Between N50,000 to N500,000 per person
Features
- Available for those who do not have an outstanding loan
- Tenor: 12 months
- Equity: 5% of loan size (deposit N25K if your application of N500K is approved)
- Interest Rate: 5% per year (you will pay N25,000 as interest)
Eligibility
- 6 months personal bank statement
- LASSRA ID
- TAX ID from LIRS
- Valid Government
- BVN
- 2 Passport Photographs
- Previous loan repayment bank statement
Small And Medium Size Enterprise Loan Renewal
Maximum amount: N5,000,000
Features:
- No outstanding loan
- Tenor: 24 to 36 months
- Equity: 5% of loan size
- Interest Rate: 5% per year
Eligibility requirements
- 12 months corporate bank statement
- LASSRA ID
- TAX ID (LIRS)
- Valid Government ID
- TIN number from the Federal Inland Revenue Service
- Evidence of company registration with CAC
- BVN
- 2 passport photographs
- Previous loan repayment bank statement
LSETF/EDFIN EDU loan
Available to private schools and each can get between N500,000 to 5,000,000
Features
Tenor: 12 to 30 months
Equity: 5% of loan size and 10% of asset finance
Interest Rate: 9% per annum
Requirements
- Minimum of 100 students enrolled
- BVN
- 2 passport photographs
- LASSRA ID
- Evidence of CAC registration
- TAX ID LIRS
- Valid ID Card
- FIRS Tax Identification Number
MSME Recovery Fund
MSME recovery fund is a grant specifically designed to support those whose businesses and shops were destroyed or looted during the EndSARs protest across the state
The application is already closed (Deadline is 30th of October 2020)
LSETF/Access Bank Micro-Enterprise Loan
Under this, you can between N50,000 to N500,000
Features
- Available to all female business owners operating and residing in Lagos
- Loan Tenor: 2 months
- Moratorium: Not available
- Equity: 5% of loan size
- Interest Rate: 10% per annum
Requirements
- 2 passport photographs
- 6 months bank statement
- LIRS Tax ID
- LASSRA ID
- Bank Verification Number
- Government ID
- Existence: Not less than 12 months
Other important things to note for you begin the application process:
- Your guarantors must be Lagos residents and have a valid LASRRA ID or a Permanent Voters Card
- You can not present your parents or siblings as guarantors
- If you already applied for LASSRA ID but are not ready, you can proceed with your application
Application Process:
- Begin your application at: https://apply.lsetf.ng by creating an account
- Complete the LSETF online application form
- Download the guarantor form
- Submit your application and wait for the approval.
How many months will it take to get the loan?
It depends on the volume of applications being treated by the LSETF office.
Will LSETF pay grants to those who received letter of grant offer?
Yes.
Have complaints about your application?
You can fill the online form to submit your complaint at lsetf.ng/content/contact-us or visit the branch of the agency at a nearby local secretariat or visit the head office at 16 Billings Way, Oregun-Ikeja, Lagos, Nigeria
Phone number: 01-7000969
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The LSETF Guidelines can be found at: https://drive.google.com/file/d/1DGKhbZ1mCEmxXLpFneovcKtGVv1dy-6j/view?usp=sharing
Detailed report of how much the commercial city had pumped into financing SMEs is at: https://infomediang.com/lagos-state-micro-small-and-medium-enterprises
Takeaway:
The Lagos State Employment Trust Fund is the government’s direct response to the building, supporting, and empowering small business owners in the commercial city.
Good day … I need loan for my business…. Am and architect and building contractor… I will be glad if my request can get approved
I need a loan for my business and am not civil servant business woman