The Small Credit Agreement is a fundamental legal instrument used in Nigerian lending operations, particularly for small-scale financial transactions between financial institutions and borrowers. This document is essential when extending credit facilities under Nigerian law, whether for personal loans, small business financing, or microfinance arrangements. The agreement incorporates all necessary elements required by the Central Bank of Nigeria and relevant state-level regulations, including clear interest rate provisions, repayment schedules, and borrower protections. It's designed to be both comprehensive and accessible, suitable for various lending scenarios while ensuring compliance with Nigerian banking and consumer protection laws. The Small Credit Agreement is particularly valuable for financial institutions seeking to standardize their small-scale lending operations while maintaining legal compliance and risk management.

1. Parties: Identification of the lender and borrower with full legal names and addresses

2. Background: Brief context of the credit arrangement and purpose of the loan

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

4. Loan Amount and Purpose: Specification of the credit amount and its intended use

5. Interest Rate: Clear statement of interest rate, calculation method, and compliance with Nigerian usury laws

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

7. Representations and Warranties: Borrower's confirmations regarding their capacity and authority to enter into the agreement

8. Events of Default: Circumstances constituting default and consequences thereof

9. Termination: Conditions under which the agreement can be terminated by either party

10. Notices: How formal communications between parties should be made

11. Governing Law: Confirmation of Nigerian law as governing law and jurisdiction