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The Peer to Peer Lending Contract is essential for formalizing direct lending arrangements between parties in Nigeria. This document is particularly relevant in the growing alternative finance sector, where traditional banking intermediaries are bypassed in favor of direct lending relationships. The contract must comply with Nigerian financial regulations, including the Money Lenders Act, Central Bank of Nigeria guidelines, and consumer protection laws. It is designed for use in both individual and business lending scenarios, covering key aspects such as loan terms, interest rates, repayment schedules, security arrangements, and default provisions. The document becomes necessary when parties wish to establish a legally binding lending relationship outside traditional banking channels while maintaining regulatory compliance and protecting both parties' interests under Nigerian law.

1. Parties: Identification of the Lender and Borrower with full legal names and addresses

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Loan Amount and Purpose: Specification of the loan amount and intended use of funds

5. Interest Rate and Calculations: Details of interest rate, calculation method, and total cost of credit

6. Repayment Terms: Schedule of repayments, payment methods, and prepayment provisions

7. Security and Collateral: Details of any assets or guarantees securing the loan

8. Representations and Warranties: Statements of fact and promises made by both parties

9. Borrower's Covenants: Ongoing obligations and commitments of the borrower

10. Events of Default: Circumstances constituting default and consequences

11. Remedies: Rights and actions available to parties in case of default or breach

12. Notices: Method and addresses for official communications

13. Governing Law and Jurisdiction: Specification of Nigerian law and jurisdiction for disputes

14. Execution: Signature blocks and execution requirements