The Lagos State Employment Trust Fund (LSETF) has launched a new loan program designed to provide accessible funding opportunities for small businesses.
To facilitate growth, expansion, wealth creation, and job opportunities, the LSETF Loan Programme offers a competitive interest rate of 9% per annum.
The initiative, which is focused on supporting local entrepreneurship and economic development, targets business owners who are registered residents of Lagos State.
Established under the Lagos State Employment Trust Fund Law of 2016, the LSETF provides financial assistance to Lagos State residents, thereby addressing unemployment challenges and promoting job and wealth creation within the region.
Initially capitalized with N25 billion over four years by the Lagos State Government, the Fund seeks additional funding from various sources, including donor partners, development agencies, corporate organizations, and individuals, to further bolster its impact on the local economy.
The LSETF Loan Programme comprises various loan categories designed to meet the diverse needs of entrepreneurs across different sectors and stages of business development:
- TACT Loan: For residents and businesses operating within the Lagos East Senatorial District, including Epe, Ibeju-Lekki, Ikorodu, Kosofe, and Somolu, the TACT Loan offers an exceptional opportunity to access funding at an incredibly low-interest rate of 6% per annum. The loan categories range from nano loans to small and medium enterprise loans, providing financial support ranging from N10,000 to N1,000,000.
- LSETF Micro Enterprise Loan: With loan amounts ranging from N50,000 to N500,000 per person, this category is available to all business owners operating and residing in Lagos State. The loan tenure spans 12 months, and applicants are required to contribute equity equivalent to 5% of the loan size.
- LSETF Micro Enterprise Startup Loan: Aimed at empowering micro-enterprise startups in Lagos State, this loan category offers amounts ranging from N50,000 to N250,000 per person. Similar to the Micro Enterprise Loan, the tenure is 12 months, with an equity contribution of 5% of the loan size.
- LSETF Small and Medium Size Enterprise Loan: Geared towards small and medium-sized business owners operating and residing in Lagos State, this loan category offers funding ranging from N500,000 to N5,000,000 per business. With a loan tenure of 24 to 36 months, applicants are required to contribute equity equivalent to 5% of the loan size.
How to Apply to LSETF Loan programme
The application process for the LSETF Loan Programme is designed to be straightforward and accessible to all eligible entrepreneurs.
Applicants are required to provide essential documentation, including but not limited to LASRRA ID, Tax ID (LIRS), valid government-issued identity card, Bank Verification Number (BVN), and relevant business documents.
The program encourages businesses to have been operational for at least one year, ensuring a commitment to sustainability and growth.
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