The Peer to Peer Loan Contract is designed for use in Nigeria when individuals or entities wish to establish a formal lending arrangement outside traditional banking channels. This document is essential in circumstances where private parties engage in direct lending, whether for personal, business, or investment purposes. The contract ensures compliance with Nigerian financial regulations, including state-specific Money Lenders Laws and the Banks and Other Financial Institutions Act (BOFIA) where applicable. It provides comprehensive coverage of loan terms, security arrangements, repayment schedules, and default provisions, while incorporating necessary legal protections for both lender and borrower. The document is particularly relevant in the growing alternative finance sector in Nigeria, where formal documentation of private lending arrangements is crucial for legal certainty and enforcement.

1. Parties: Identification and details of the Lender and Borrower, including full legal names, addresses, and contact information

2. Background: Brief context of the loan arrangement and the relationship between the parties

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

4. Loan Amount and Purpose: Specification of the loan amount, currency, and intended purpose of the loan

5. Interest Rate: Clear statement of the interest rate, calculation method, and payment frequency

6. Repayment Terms: Detailed repayment schedule, including payment amounts, due dates, and method of payment

7. Representations and Warranties: Statements of fact and promises made by both parties regarding their capacity and authority to enter into the agreement

8. Events of Default: Circumstances that constitute default and the consequences thereof

9. Remedies: Rights and actions available to the Lender in case of default

10. Notices: Process and requirements for formal communications between parties

11. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for dispute resolution

12. Execution: Signature blocks and execution requirements