Every now and then, we all need a little assistance. Nobody is an island, and to be honest, it’s always simpler to go far when you have help. Support and assistance can be difficult to come by, but an olive branch is occasionally just around the corner. In this post, we’ll look at one of these olive branches, the Lagos State Employment Trust Fund, and everything you need to know about it.
What is the Lagos State Employment Trust Fund, and how does it work?
Small and medium-sized firms, sometimes known as microbusinesses, can struggle to stay afloat. The hurdles they encounter are numerous, whether it be cash flow issues or an inability to break even. They established the Lagos State Employment Trust Fund in acknowledgment of this.
The LSETF’s Main Goals
The Lagos State Employment Trust Fund (LSETF) is a government-run project in Lagos. The project is an extension of the government’s intention to build and strengthen the Lagos economy by offering financial assistance to small, medium-sized enterprises, and micro-businesses that operate in the state.
The company offers loans to start-ups, small and medium-sized businesses, and existing businesses. Recognizing the paucity of white-collar jobs and the subsequent increase in unemployment, the LSETF strives to reverse this trend by assisting in the preservation of other forms of employment.
How much money does the Lagos State Employment Trust Fund have?
Micro enterprises are eligible for loans of up to N500, 000 with an annual interest rate of 5%. Small and medium-sized businesses can also acquire loans for up to N5, 000,000.
What is the rate of interest on the Lagos State Employment Trust Fund?
Microbusinesses can borrow up to N500, 000 at a 5% annual interest rate. They charge the same 5% interest rate on loans to small and medium-sized businesses.
The LSETF’s Advantages and Disadvantages
The LSETF has the advantages of being a low-interest loan with a large loan amount. The fact that it is only available in Lagos State is a huge disadvantage.
These are the criteria that qualify you and your company for the LSETF.
The following items are required:
- Government Identification
- Notarized Guarantor Forms
- LASRRA (Lagos State Residents Registration Agency) Certificate and Tax Identification Number
- Training Certificate
- Passport photographs
- Evidence that you have incorporated your company with the corporate affairs commission. Your CAC Certificate.
If you want to start your own firm or grow and sustain it, an infusion of capital will suffice. Government-backed startup loans, such as the LSETF, are a valuable source of capital.
With the help of a government-backed Start Up Loan and free business support, you can start or build your own business. Individuals seeking business loans to fund their start-up might consider this option.