LAPO’s institutional structures, procedures and services have always been influenced by the following assumptions:

1. Low-income people are too disadvantaged to benefit from existing credit schemes operated by government and formal financial institutions.
2. The poor are not necessarily lazy.
3. An improvement in the socio-economic situation of the poor would take place if financial services were added to support their physical labour and skills.
4. Small groups have tremendous influence on cooperating individuals.
5. Poverty is reinforced by problems such as too large family size, malnutrition, ignorance and disease.
6. Poor women and children are relatively more neglected.