The Loan Repayment Agreement Employee is a crucial document used in Nigerian business contexts where employers provide financial assistance to their employees through company loan programs. This agreement is designed to comply with Nigerian employment law, including the Labour Act and Banks and Other Financial Institutions Act (BOFIA) 2020, while providing a structured framework for loan repayment typically through salary deductions. The document is essential for organizations offering employee loan benefits, ensuring proper documentation of loan terms, interest rates, repayment schedules, and the rights and obligations of both parties. It includes necessary authorizations for payroll deductions and protections for both employer and employee in cases of employment termination or default.

1. Parties: Identifies the employer (lender) and employee (borrower) with full legal names and addresses

2. Background: Establishes the employment relationship and context for the loan

3. Definitions: Defines key terms used throughout the agreement

4. Loan Amount and Purpose: Specifies the loan amount, purpose, and any conditions attached to the loan

5. Interest Rate: States the applicable interest rate and calculation method in compliance with Nigerian regulations

6. Repayment Terms: Details the repayment schedule, including payment amounts and frequency

7. Salary Deduction Authorization: Employee's authorization for the employer to deduct loan repayments from salary

8. Default and Remedies: Consequences of default and available remedies for the employer

9. Term and Termination: Duration of the agreement and circumstances for early termination

10. Representations and Warranties: Employee's confirmation of understanding and ability to repay

11. Governing Law: Specifies Nigerian law as governing law and jurisdiction

12. Execution: Signature blocks and execution requirements