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The Loan Facilitation Agreement serves as a critical document in the Nigerian financial services sector, establishing the legal framework for intermediaries who connect lenders with potential borrowers. This agreement becomes necessary when financial institutions or lending platforms wish to formalize their relationship with facilitators who help originate, process, or manage loans. The document ensures compliance with Nigerian banking regulations, including the Banks and Other Financial Institutions Act (BOFIA) 2020, Central Bank of Nigeria directives, and anti-money laundering regulations. It typically includes detailed provisions on service scope, compensation structures, risk management, regulatory compliance, and operational procedures, while clearly delineating the rights and obligations of all parties involved in the loan facilitation process.

1. Parties: Identifies and defines all parties to the agreement: the Facilitator, the Lender(s), and the Borrower(s)

2. Background: Explains the context of the agreement, including the Facilitator's role in connecting Lenders with Borrowers

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Scope of Facilitation Services: Details the specific services provided by the Facilitator, including loan matching, documentation assistance, and coordination

5. Facilitator's Obligations: Outlines the Facilitator's duties, responsibilities, and standard of service

6. Lender's Rights and Obligations: Specifies the Lender's responsibilities, including providing accurate information and compliance with lending regulations

7. Borrower's Rights and Obligations: Details the Borrower's duties, including providing accurate information and meeting eligibility criteria

8. Fees and Payment Terms: Specifies all fees, commissions, and payment arrangements for the facilitation services

9. Representations and Warranties: Contains standard and specific warranties from all parties

10. Compliance and Regulatory Matters: Addresses compliance with relevant Nigerian laws and regulations

11. Confidentiality: Governs the handling and protection of confidential information

12. Limitation of Liability: Sets out the extent and limitations of the Facilitator's liability

13. Term and Termination: Specifies the duration of the agreement and termination provisions

14. Dispute Resolution: Details the process for resolving disputes between parties

15. General Provisions: Contains standard boilerplate clauses including notices, amendments, and governing law