The Lagos State Employment Trust Fund (LSETF) has launched a loan program aimed at providing affordable access to funding for small businesses to grow, expand, create wealth, and generate employment.
Nairametrics learnt that the loan scheme offers an interest rate of 9% per annum and is available to business owners who are registered residents of Lagos State.
About the Loan
Established by the Lagos State Employment Trust Fund Law of 2016, the LSETF aims to provide financial support to residents of Lagos State for tackling unemployment through job and wealth creation.
The Fund starts with an initial capital of N25 billion, contributed over four years by the Lagos State Government. It will also seek additional funding from donor partners, development agencies, corporate organizations, and individuals.
Here are the loan categories available:
LSETF Micro Enterprise Loan (N50,000 – N500,000) per person
- Maximum loan amount: N500,000
- Loan tenure: 12 months (No moratorium)
- Equity contribution: 5% of loan size
- Interest rate: 9% per annum
Requirements
- LASRRA ID
- Tax ID (LIRS)
- Valid government-issued identity card
- Bank Verification Number (BVN)
- 2 passport photographs
- 6 months bank statement
- Business must have been in existence for at least one year.
LSETF Micro-Enterprise Startup Loan (N50,000 – N250,000) per person
- Maximum loan amount: N250,000
- Tenure: 12 months
- Equity contribution: 5% of loan size
- Interest rate: 9% per annum
Requirements
- LASRRA ID
- Tax ID (LIRS)
- Valid government-issued identity card
- BVN
- 1 passport photograph
- Vocational training certificate from a Lagos state-recognized certifying body
TACT loan
Residents and business owners within the Lagos East Senatorial District, including Epe, Ibeju-Lekki, Ikorodu, Kosofe, and Somolu, are eligible to apply for the TACT Loan. This loan provides up to one million Naira at an annual interest rate of 6%.
Loan categories
- Nano loans (N10,000 – N100,000)
- Micro-enterprise startup loans (N50,000 – N250,000)
- Micro-enterprise loans (N50,000 – N500,000)
- Small & medium enterprise loans (N500,000 – N1,000,000)
To learn more about the program, visit here for more information. Applications can be made here