Consumer Credit Agreement Template for Nigeria

This Consumer Credit Agreement template is designed for use by financial institutions and lenders operating in Nigeria when extending credit facilities to individual consumers. The document incorporates all regulatory requirements set forth by the Central Bank of Nigeria (CBN), including mandatory disclosures, interest rate calculations, and consumer protection provisions. It is structured to comply with the CBN Consumer Protection Framework, the Federal Competition and Consumer Protection Act, and other relevant Nigerian banking regulations. The agreement includes comprehensive sections on loan terms, borrower obligations, default provisions, and recovery mechanisms, including the Global Standing Instructions (GSI) framework where applicable. This template is suitable for various consumer credit products including personal loans, installment credits, and consumer durable financing.

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

2. Background: 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 and Charges: Details of interest rate, calculation method, and all applicable charges as per CBN Guidelines

6. Repayment Terms: Payment schedule, method of payment, and repayment period

7. Conditions Precedent: Conditions that must be satisfied before the credit facility becomes available

8. Representations and Warranties: Borrower's confirmations regarding their financial status and ability to repay

9. Borrower's Covenants: Ongoing obligations of the borrower during the loan term

10. Events of Default: Circumstances constituting default and consequences

11. Termination: Conditions and process for early termination or prepayment

12. Data Protection and Privacy: Handling of borrower's personal information and credit reporting

13. Notices: Method and addresses for formal communications

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