Letter Of Intent To Borrow Money Template for Nigeria

The Letter of Intent to Borrow Money is a crucial preliminary document in the Nigerian lending landscape, serving as a bridge between initial discussions and the final loan agreement. This document is typically used when a prospective borrower wishes to formally communicate their serious intention to obtain a loan while setting out the basic proposed terms. While not a binding loan agreement, it helps establish the framework for subsequent negotiations and demonstrates commitment to the transaction. The document must comply with Nigerian financial regulations and contract law, including the Money Lenders Act and relevant state laws. It's particularly useful in situations where parties need to document their preliminary understanding before proceeding with full due diligence and formal loan documentation. The letter typically includes essential information such as loan amount, purpose, proposed terms, and repayment plans, serving as a foundation for the final loan agreement.

1. Sender's Details: Full name and address of the prospective borrower

2. Date: Date of the letter

3. Recipient's Details: Full name and address of the potential lender

4. Subject Line: Clear indication that this is a Letter of Intent to Borrow Money

5. Opening Statement: Formal introduction and clear statement of intent to borrow

6. Loan Amount: Specific amount to be borrowed, stated in both numbers and words

7. Purpose of Loan: Clear statement of how the borrowed funds will be used

8. Proposed Terms: Key loan terms including repayment period and proposed interest rate

9. Repayment Plan: Overview of how and when the loan will be repaid

10. Closing Statement: Expression of commitment and request for further discussion

11. Signature Block: Space for signature, name, and date