1. Definitions
For the purposes of this Agreement:
- Lender: The person or entity that provides funds through the Platform to be lent to Borrowers.
- Borrower: The person or entity who borrows funds through the Platform.
- Loan: The amount of funds the Lender lends to the Borrower through the Platform under the terms set forth in the Loan Agreement.
2. Lender's Obligations
2.1 Provision of Funds
The Lender agrees to provide the funds for the Loan to the Borrower as per the terms presented on the Platform. The Lender will only provide funds for loans in which they choose to participate.
2.2 Investment Decisions
The Lender acknowledges that all investment decisions, including the choice of loans to fund, are made at the Lender's sole discretion. The Platform does not provide investment advice.
2.3 Due Diligence
The Lender acknowledges that the Platform has used its professional expertise to process the loan applications and screen the Borrowers before posting the loan opportunities on the Platform. The Platform has made reasonable efforts to provide accurate and relevant information about the Borrowers, including their creditworthiness and loan eligibility. However, it is the sole responsibility of the Lender to conduct any additional due diligence based on the information provided by the Platform.
The Lender agrees that the Platform's role is limited to facilitating the loan transaction and providing the necessary details for the Lender's consideration. The Lender understands and agrees that the Platform does not guarantee the accuracy, reliability, or completeness of any information provided, nor does the Platform accept any liability for the outcomes of the loan. The Lender bears the full responsibility for assessing the risks involved in lending to any Borrower listed on the Platform.
2.4 Funding Commitment
By committing funds to a loan through the Platform, the Lender agrees to provide the specified loan amount to the Borrower in accordance with the agreed terms.
2.5 No Guarantee of Repayment
The Lender understands that loans made through the Platform may carry a risk of non-repayment. The Platform does not guarantee repayment of the loan, and the Lender acknowledges the risks involved in lending money.
3. Platform's Responsibilities
3.1 Facilitation of Loans
The Platform will facilitate the loan transaction between the Lender and Borrower, including managing the payment process, collecting repayments, and maintaining loan records.
3.2 Credit Checks
The Platform may conduct credit checks on Borrowers and provide Lenders with credit reports, but the Platform does not guarantee the accuracy or reliability of the information provided.
3.3 Service Fees
The Platform charges a fee for its services, which may include facilitating the loan transaction, managing the repayment process, and providing access to the marketplace. These fees are disclosed on the Platform and are subject to change. The Lender agrees to pay all applicable fees as outlined by the Platform.
3.4 Loan Servicing
The Platform will collect and distribute loan payments from the Borrower to the Lender. The Platform will use reasonable efforts to ensure timely payments but is not liable for late or missed payments by the Borrower.
4. Loan Repayment
4.1 Repayment Terms
Loan repayments from the Borrower to the Lender will be processed according to the loan agreement terms, including principal repayment, interest, and any fees.
4.2 Late Payments
If the Borrower fails to make timely payments, the Platform will use reasonable efforts to facilitate the collection of the overdue payments, but the Lender acknowledges that the Platform is not liable for the Borrower's failure to repay.
4.3 Default
If a Borrower defaults on a loan, the Lender may attempt to recover the loan through legal channels, but the Platform is not responsible for any losses incurred due to Borrower default. The Lender acknowledges the risk of lending to individuals or businesses who may be unable to repay.
5. Fees and Charges
5.1 Platform Fees
The Platform charges a fee for its services, which may include a loan origination fee, servicing fee, or other charges. These fees will be clearly outlined and disclosed on the Platform.
5.2 Withdrawal Fees
The Lender may incur fees for withdrawing funds from their account or for transferring funds to their designated bank account. These fees will be disclosed on the Platform.
6. Risk Disclosure
6.1 Investment Risks
The Lender acknowledges that lending money carries inherent risks, including the risk of borrower default, loss of principal, and other unforeseen risks.
6.2 Diversification
The Platform encourages the Lender to diversify their investment across multiple loans to reduce risk.
6.3 Regulatory Risks
The Lender understands that changes in applicable laws, regulations, or tax policies may impact their investment, and the Platform makes no guarantee regarding the legal or regulatory environment.
7. Confidentiality and Data Protection
7.1 Confidential Information
Both parties agree to maintain the confidentiality of all personal, financial, and business information exchanged during the course of this Agreement.
7.2 Data Protection
The Platform will process and protect the Lender's personal information in accordance with its Privacy Policy, which is incorporated by reference into this Agreement.
8. Term and Termination
8.1 Term
This Agreement will remain in effect as long as the Lender has an active account with the Platform or until terminated by either party.
8.2 Termination
Either party may terminate this Agreement at any time by notifying the other party. Upon termination, the Lender will remain liable for any outstanding obligations.
9. Limitation of Liability
9.1 No Liability for Losses
The Platform will not be held liable for any losses or damages incurred by the Lender as a result of lending activities or borrower defaults.
9.2 Indemnity
The Lender agrees to indemnify and hold harmless the Platform from any claims, damages, or expenses arising out of the Lender's participation in the Platform.
10. Governing Law and Dispute Resolution
10.1 Governing Law
This Agreement shall be governed by the laws of Nigeria.
10.2 Dispute Resolution
Any disputes arising under or in connection with this Agreement shall be resolved through arbitration, and both parties agree to submit to the exclusive jurisdiction of the courts in that location.
11. Miscellaneous
11.1 Entire Agreement
This Agreement constitutes the entire understanding between the Platform and the Lender regarding lending activities and supersedes all prior discussions or agreements.
11.2 Amendments
The Platform may amend this Agreement at any time, and any changes will be communicated to the Lender. The Lender's continued participation in the Platform after such changes constitutes acceptance of the updated terms.