The Group Loan Agreement Form is a vital instrument in Nigerian financial services, particularly used in microfinance and community-based lending scenarios. This document type emerged from the need to provide accessible financing to individuals who may lack traditional collateral but can leverage group solidarity as a form of security. The agreement, compliant with Nigerian banking laws and CBN regulations, facilitates lending to organized groups where members collectively guarantee each other's obligations. It's commonly used by microfinance banks, cooperative societies, and traditional banks engaging in group lending programs. The document includes comprehensive details about group structure, member responsibilities, loan terms, and joint liability arrangements, making it particularly suitable for small-scale entrepreneurs, farmers, and informal sector operators who benefit from group-based lending approaches.

1. Parties: Identification of the Lender and the Group members, including their addresses and registration/identification details

2. Background: Context of the agreement, including the group's formation purpose and loan request

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Loan Amount and Purpose: Specification of the total loan amount, individual allocations, and approved purpose of the loan

5. Group Structure and Governance: Details of group leadership, decision-making process, and member responsibilities

6. Joint and Several Liability: Declaration of collective responsibility for the loan repayment

7. Repayment Terms: Schedule of repayments, interest rates, and payment methods

8. Security and Collateral: Details of any security or collateral provided by the group or individual members

9. Group Member Obligations: Specific responsibilities and commitments of each group member

10. Default and Consequences: Definition of default events and resulting actions

11. Representations and Warranties: Standard declarations about the group's capacity and authority

12. Meeting and Reporting Requirements: Group meeting schedules and reporting obligations to the lender

13. Termination: Conditions and process for terminating the agreement

14. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction details

15. Execution: Signature blocks for all parties and witnesses