The Consumer Loan Agreement is essential for financial institutions operating in Nigeria that provide personal loans to individual consumers. This document is designed to comply with the Central Bank of Nigeria's regulations, the Banks and Other Financial Institutions Act (BOFIA) 2020, and the Consumer Protection Framework 2016. The agreement should be used whenever a financial institution extends credit to individual consumers for personal, family, or household purposes. It contains all necessary provisions required by Nigerian law, including mandatory disclosures, interest rate calculations, repayment terms, borrower's rights, and default procedures. The document ensures transparency in lending practices and provides adequate protection for both the lender and the borrower while maintaining compliance with Nigerian banking and consumer protection regulations.

1. Parties: Identification of the lender and borrower with complete contact details

2. Background: Context of the loan agreement and purpose of the facility

3. Definitions: Definitions of key terms used throughout the agreement

4. Loan Amount and Purpose: Specification of the loan amount and permitted use of funds

5. Interest Rate: Details of interest rate, calculation method, and annual percentage rate (APR)

6. Repayment Terms: Repayment schedule, installment amounts, and payment methods

7. Fees and Charges: Breakdown of all applicable fees, charges, and penalties

8. Representations and Warranties: Borrower's confirmations regarding their capacity and financial situation

9. Borrower's Obligations: Key responsibilities and commitments of the borrower

10. Events of Default: Circumstances constituting default and consequences

11. Lender's Rights: Rights of the lender including enforcement and collection rights

12. Consumer Protection Provisions: Mandatory consumer rights and protections under Nigerian law

13. Governing Law: Specification of Nigerian law as governing law and jurisdiction

14. Execution: Signature blocks and execution requirements