AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
LSETF's MSME Loan Programme page, as at October 2026, states an interest rate of 9% a year for its Micro Enterprise, Start-up and SME loans, with 5% a year for its Ojo LGA and Onigbongbo LCDA schemes; its application FAQ still says 5%. Micro loans run for 12 months with no moratorium, SME loans for 24 to 36 months, and every loan needs an equity contribution of 5% of the loan amount.
The rate: 9% or 5%?
Search for the LSETF interest rate and you will find both figures, and LSETF's own pages are part of the reason. As at October 2026:
- The MSME Loan Programme page on lsetf.ng says the programme "attracts only 9% interest rate per annum" and lists 9% a year against the Micro Enterprise, Micro Enterprise Start-up and SME products. It lists 5% a year for the Ojo LGA and Onigbongbo LCDA schemes.
- The FAQ on the application portal (apply.lsetf.ng) answers "The interest is 5% per annum."
- Older material, such as a FATE Foundation newsletter from 2020, described the programme at 5% a year.
The likeliest reading is that 5% was the original programme rate, still applies to the council-partnered schemes, and the main products now carry 9%. That is our inference, not an LSETF statement. The rate that binds you is the one in your offer letter, so check it there.
Terms by product
| Product | Amount | Tenor | Moratorium | Rate | Equity |
|---|---|---|---|---|---|
| Micro Enterprise (ME) | ₦50,000–₦500,000 per person | 12 months | None | 9% a year | 5% of loan |
| ME Start-up | ₦50,000–₦250,000 per person | 12 months | Not stated | 9% a year | 5% of loan |
| Small & Medium Enterprise | ₦500,000–₦5 million per business | 24–36 months | Not stated | 9% a year | 5% of loan |
| Ojo LGA / Onigbongbo LCDA ME | Up to ₦200,000 (page lists ₦50,000 and ₦200,000) | 12 months | None | 5% a year | 5% of loan |
| Ojo LGA / Onigbongbo LCDA start-up | ₦50,000–₦100,000 | 12 months | Not stated | 5% a year | 5% of loan |
Source: LSETF MSME Loan Programme page, October 2026. The portal FAQ gives the start-up maximum as ₦500,000, which conflicts with the ₦250,000 on the programme page; plan on the lower figure until LSETF confirms.
Who qualifies for each product
- Micro Enterprise
- Business owners operating and resident in Lagos; business in existence for at least one year; LASRRA ID, LIRS tax ID, government ID, BVN, two passport photographs and six months of bank statements.
- ME Start-up
- Micro start-ups in Lagos; LASRRA ID, LIRS tax ID, government ID, BVN, one passport photograph and a vocational training certificate from a Lagos-recognised certifying body.
- SME
- Small and medium businesses operating in Lagos, registered with CAC and operational for at least a year; CAC documents, two passports and six months of corporate bank statements, plus the ID and tax documents above.
The FAQ adds that income can be evidenced by a bank statement, audited accounts or another financial statement from a reputable institution, and that you need a Lagos State TIN from LIRS but not proof of tax paid.
What the equity contribution means
LSETF asks you to put in 5% of the loan size yourself. On a ₦500,000 micro loan that is ₦25,000; on a ₦5 million SME loan it is ₦250,000. Ask how the contribution is made and whether it is held or spent on the business, because that affects how much cash you need on day one.
Worked examples
Examples only. LSETF does not say on these pages whether interest is calculated on the reducing balance or flat on the original amount. Both are shown so you can see the range.
| Loan | Method | Monthly instalment | Total interest | Total repaid |
|---|---|---|---|---|
| ₦500,000, 12 months, 9% a year | Reducing balance | ≈ ₦43,726 | ≈ ₦24,709 | ≈ ₦524,709 |
| ₦500,000, 12 months, 9% a year | Flat | ₦45,417 | ₦45,000 | ₦545,000 |
| ₦250,000, 12 months, 5% a year | Reducing balance | ≈ ₦21,402 | ≈ ₦6,822 | ≈ ₦256,822 |
| ₦5,000,000, 36 months, 9% a year | Reducing balance | ≈ ₦158,999 | ≈ ₦723,952 | ≈ ₦5,723,952 |
Add the 5% equity to see your full cash outlay. For the ₦500,000 reducing-balance case: ₦25,000 equity plus ₦24,709 interest is ₦49,709 of your own money over the year. See APR vs flat fee for why the method matters.
How repayment works, and what we could not confirm
Micro loans have no moratorium, so the first instalment falls in the first month after disbursement. Neither the programme page nor the FAQ says how instalments are collected (a debit from your account, a transfer to LSETF's partner, or another method), or what late-payment charges apply. Those terms will be in your loan agreement; read that section before signing. Guarantors matter here: micro loans need one and SME loans two, all Lagos residents with a LASRRA ID or PVC and not direct relatives, and they are the people a lender turns to if you fall behind.
What to check first
- The rate on your offer and whether it is reducing balance or flat.
- The first repayment date and how repayments are collected.
- Any late-payment charge or penalty interest.
- Your equity amount and how to pay it.
- Who confirms in writing when the loan is cleared: see repaying a government loan.
Where Pryme fits
Pryme is not part of LSETF. A Personal Assistant can remind you before each LSETF instalment, and a Pryme Business Account gives you the clean six-month statement LSETF asks for. For all Lagos options, see Lagos State loan schemes.
Questions people ask
What is the LSETF loan interest rate in 2026?
As at October 2026, LSETF's programme page states 9% a year for its main micro and SME loans and 5% a year for the Ojo LGA and Onigbongbo LCDA schemes. Its portal FAQ says 5%. Your offer letter is final.
How long do I have to repay an LSETF loan?
Micro and start-up loans run for 12 months; SME loans for 24 to 36 months, according to the programme page.
Does LSETF give a moratorium?
The programme page says micro enterprise loans have no moratorium. It does not state one for the other products.
How much equity does LSETF require?
5% of the loan amount, for example ₦25,000 on a ₦500,000 loan.
Sources
- LSETF: MSME Loan Programme · accessed Oct 2026
- LSETF application portal: FAQs · accessed Oct 2026
- FATE Foundation newsletter: Here's how to access the LSETF loan, 18 Sep 2020 · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.