Document background
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.
