Frequently Asked Questions (FAQs)

LECOLE offers two main types of loans: Small Loans (Group-Based Micro-Loans) and Small Entrepreneurs Loans (SEP).

Women are the primary target for Small Loans, while both men and women can apply for the SEP loan if they meet eligibility criteria.

Small Loans are collateral-free but require a 10–15% cash security deposit. SEP loans may require additional guarantors.

Interest rates vary by loan product. For Small Loans, flat rates of 15% (6 months) or 29% (11 months) apply. SEP loan rates may depend on the loan terms.

Repayments can be weekly, bi-weekly, or monthly, depending on the client's choice.

Missed payments must be reported to the loan officer. Group collection centers are responsible for gathering repayments, but individual borrowers are accountable.

Loans are disbursed 14 days after enrolment or on the second meeting day.

No, borrowers are only allowed one loan per cycle.

The maximum loan amount is based on business needs and determined after assessment by LECOLE.

Businesses involved in illegal or harmful activities, such as gambling, child labor, or tobacco, do not qualify.

Yes, both a family guarantor and a non-family guarantor are required for SEP loans.

Loans are disbursed via cash, cheque, or direct deposit into the borrower's bank account.

Required documents include a valid national ID or voter ID, two passport-sized photos, proof of residency, and guarantor information.

A security deposit of 10–15% of the principal loan is required and will be returned upon loan repayment.

No, clients must clear any existing loans before applying for a new one.

Yes, early repayment is allowed, and clients should notify the loan officer.

If repayment becomes difficult, the guarantors are responsible for covering the outstanding loan amount.

Yes, borrowers can apply for a larger loan in subsequent cycles based on repayment history.

A 1% risk premium is included to cover the loan in case of unforeseen circumstances, such as the borrower's inability to repay due to death.

Report the loss immediately to the loan officer and obtain a replacement passbook.

For any inquiries call us between 9am to 5pm our working hours