Document background
The Simple Loan Term Sheet is a crucial preliminary document used in Nigerian lending transactions to establish the fundamental terms and conditions of a proposed loan facility. It serves as a roadmap for the preparation of detailed loan documentation and is commonly used across various sectors of the Nigerian economy. The document typically precedes the full loan agreement and captures the commercial understanding between the lender and borrower, including essential terms such as facility amount, interest rate, tenure, security structure, and key conditions. While primarily used in the Nigerian jurisdiction and subject to Nigerian law, the format aligns with international banking practices while incorporating local regulatory requirements. The Simple Loan Term Sheet is particularly valuable in commercial lending scenarios where parties need to quickly document their initial understanding before proceeding with comprehensive due diligence and detailed documentation.
