LAPO Microfinance Bank Ltd has launched an Insurance scheme for her clients in collaboration with GoldLink Insurance Plc.

According to Mr. Godwin Ehigiamusoe, LAPO Managing Director, the scheme has a premium rate of 0.6% per loan amount and would provide life; fire (in the market place) and medical (hospitalization only) insurance cover for clients.

Ehigiamusoe described micro-insurance as a strategic tool against poverty as it assists clients maintain a sense of financial confidence even in the face of economic and social vulnerability. He therefore urged government, donors and development agencies genuinely interested in poverty reduction to embrace the idea.

Meanwhile, LAPO has undertaken a downward review of her charges for the overall benefit of clients. Ehigiamusoe said the changes, which became effective from 1st June 2010, include the removal of client registration and loan application fees of N500 and N200 respectively, while loan processing fee and insurance premium per loan are now 1% and 0.6% respectively.

“It is expected that as a regulated microfinance bank, LAPO will be able to offer lower rates on its services in the near future”, he added.