Terms & Conditions

TERMS AND CONDITIONS

Please read these Terms and Conditions carefully before using this service with your mobile device or any other means, because by using this service, you agree to be bound by the Terms and Conditions stated herein.

These Terms & Conditions (“Agreement”) govern all loans granted by the Lagos State Employment Trust Fund (LSETF) to approved beneficiaries (“Borrower”). By accepting an approved loan and/or proceeding with drawdown, the Borrower agrees to be bound by these Terms and Conditions.

LOAN FACILITY

The loan facility is provided to support eligible beneficiaries for business and economic development purposes. The specific details of each loan shall be as follows:

1. DEFINITIONS

In this agreement, the terms “beneficiary” and “Borrower” shall mean the person who has applied for a credit facility and has agreed to the terms of this Agreement, while “Lender” shall mean LSETF/The Fund.

• Disbursement Date - means the date the Lender advanced the loan to the Beneficiary.
• Payment Due Date – means the loan repayment date, subject to the approved total tenure.
• Loan – means the approved loan amount.
• Default – means any failure of the Borrower to meet financial obligations due to the Lender as at when due, as the Lender has independently determined and communicated to the Borrower because of this facility.
• Service – means the LSETF Lending Service for existing and new beneficiaries and comprises the Request a Loan, receiving a Loan, and paying a Loan
• Use – means the Borrower’s accessing or using this service, whether by a mobile device or by any other means made available by the service.
• Equity Contribution – means 5% of the loan amount granted that will be paid by the beneficiary preceding disbursement and refunded to the beneficiary on completion of loan repayment
• Penal fee- means 1% of the Loan rental not paid is charged as a penalty for failure to meet the monthly obligation when due.

2. INTEREST/PANEL FEES

• The Interest rate to be charged for this loan shall be 9% per annum.
• The above interest rate shall remain applicable in the event of the Beneficiary liquidating the loan before expiration.
• If the Beneficiary chooses to liquidate the loan within the first thirty (30) days of disbursement, the Borrower shall be liable to pay interest equivalent to two (2) months.
• The above rate does not preclude us from charging panel fees, and in the event of any dispute arising from these Terms and Conditions, the cost of Litigation/Solicitors' fees.

3. BENEFICIARY’S OBLIGATIONS

• To pay the equity contribution of 5% and the Paystack transaction fees as provided on the Borrower’s application dashboard.
• To pay the loan sum, including interest rate, due to LSETF. Beneficiary promises to pay these rates/panel fees as agreed in this Agreement.
• To use this loan for business purposes only.
• LSETF reserve the right to presume that (the Borrower) has authorized any loan application made in the Borrower’s name. The Borrower will be deemed responsible for any unauthorised application using the Borrower’s account unless the Borrower notifies the Lender, in writing, of an imminent fraud by another person on the Borrower’s account within twenty-four (24) hours of such fraud.
• LSETF reserve the right to accept repayment provided adequate notice (has been given) and the loan amount, along with the accrued interest rate (fully paid).
• To fund the account adequately to meet the loan repayment obligation as due.
• Authorize the Lender to set off the outstanding loan from the Borrower’s accounts linked to the Borrower’s BVN
• To honour all promises that were made in this Agreement.
• To pay all interest/panel fees as provided in these terms and conditions.
• To promptly notify LSETF (of any change of) my name, mailing address, email address or telephone number.

4. LENDERS OBLIGATIONS

• To make the credit facility available to the Borrower, subject to the Fulfilment of all requirements precedent to disbursement.
• To demand repayment from the Borrower as and when due.
• To use all reasonable and legitimate means to collect the amount extended to the Borrower, including all default penalty fees on the outstanding sum.
• To refund the equity contribution of 5% upon closure of the facility.

5. LOAN MONITORING

• The Borrower authorizes LSETF or its partners to visit their business at the location provided in the loan application form at any time to verify that the loan is used as stated in the application, matches the approved purpose, and supports LSETF’s objectives.

6. CONDITIONS PRECEDENT TO DRAWDOWN

• Receipt of evidence of a verifiable place of business or registered address.
• An existing active account with details provided at the point of application.
• Equity contribution of 5% and a transaction fee of N2,000.00 (Two Thousand Naira Only) for Paystack transaction fee.
• Activation of the Direct debit mandate on the accounts provided
• A duly completed Guarantor(s) form with LASRRA registration.
• Receipt of a valid Bank Verification Number (BVN) of the obligor and guarantor.

7. EVENT OF DEFAULT

Default in terms of this Agreement will occur if:

• The Borrower fail(s) (refused and neglected) to make any scheduled repayment in full on or before the payment due date in accordance with the repayment plan given.
• Any representation/information, warranty or assurance made or given by the Borrower in connection with the application for this loan or any information or documentation supplied is later discovered to be materially incorrect; or
• The Borrower do(es) anything which may prejudice LSETF right in terms of this Agreement or causes any loss or damage (to the Lender.)
• In the event of any default by the Borrower, LSETF reserves the right to set off the outstanding loan obligation and other panel fees from the accounts linked to the Borrower’s BVN.

8. RIGHT OF SET-OFF

By accepting this agreement and by drawing on the loan, I covenant to repay the loan as and when due. In the event that I fail to repay the loan as agreed, and the loan becomes delinquent, the LSETF or its Partner shall have the right to report the delinquent loan to the CBN through the Credit Risk management System (CRMS) or by any other means, and request the CBN exercise its regulatory power to direct all banks and other financial institutions under its regulatory purview to set-off my indebtedness from any money standing to my credit in any bank account and from any other financial assets they may be holding for my benefit. I covenant and warrant that LSETF or its Partner shall have the power to set off my indebtedness under this loan agreement from all such monies and funds standing to my credit/benefit in any and all such accounts or from any other financial assets belonging to me and in the custody of any such bank. I hereby waive any right of confidentiality, whether arising under common law or statute or in any other manner whatsoever and irrevocably agree that I shall not argue to the contrary before any court of law, tribunal, administrative authority or any other body acting in any judicial or quasijudicial capacity.

9. TERMINATION OF THIS LENDING ARRANGEMENT

• In addition to termination by default, LSETF may terminate this agreement at any time and for any reason, subject to the requirements of applicable law.
• Where termination arises because of default, the Borrower shall not be able to apply for this facility again.

10. INDEMNIFICATION

• LSETF is exempted from any form of liability whatsoever for complying with any or all instructions given by means of the Borrower’s credentials, and accordingly, LSETF shall not be responsible for any fraudulent, duplicate or erroneous instructions.
• LSETF is exempted from any liability for loss that may arise because of acts of hackers and other unauthorized access to the Borrower’s Account via this Service.
• The Borrower agree(s) to indemnify LSETF for any failure to perform, or delay in performance of, any of their obligations under this Agreement that is caused by any act or event beyond their reasonable control or caused by the Borrower not fulfilling his/ her obligations.

11. DISCLAIMER OF WARRANTIES

The Borrower expressly agree that the use of this service is at his/her sole risk. Neither the Lender nor any of its affiliates, or their respective directors, officers, employees, agents, contractors, affiliates, licensors, warrants that this service shall always be 100% perfect. This service is provided on an “as is,” “as available” basis, without warranties of any kind, either express or implied, including, without limitation, those of merchantability and fitness for purpose.

12. LIMITATION OF LIABILITY

Under no circumstances shall The Lender affiliates, or their respective directors, officers, employees, agents, contractors, or licensors, be liable for any direct or incidental, special or consequential damages under or arising from this agreement, whether for breach of contract, tortuous behaviour, negligence, or under any other cause of action, including without limitation, any liability for damages caused or allegedly caused by any failure of performance, error, omission, interruption, electrical surge/damage/interference, deletion, defect, delay in operation or transmission, computer virus, communications line failure, breakdown of equipment, software error, infringement, unauthorized access to, or theft, destruction, alteration, or use of, records.

13. GENERAL

This Agreement represents the entire understanding between both the LSETF and Borrower with respect to the provision of this service.

Any amendment to this Agreement shall be made by LSETF from time to time and communicated to the Borrower in writing.

The Borrower agree and undertakes that for the period of this Agreement, the Borrower will continue to maintain excellent repayment performance.

This Agreement shall be governed and construed in accordance with the laws of the Federal Republic of Nigeria and, in the event of a dispute, the same shall be subject to Arbitration in accordance with the provisions of the Arbitration and Conciliation Act, Cap A18, Laws of the Federation of Nigeria 2004. The Arbitration shall be held in the English Language. The Arbitration shall be held in Lagos, and the arbitral award shall be final.

LSETF reserve the right to transfer or assign our rights and obligations under this Agreement (including its obligation to lend money to the Borrower or the amount owed under this Agreement) to another person. The Lender will only inform the Borrower if such a transfer causes the arrangements for the administration of this Agreement to change.

The Borrower authorizes and consents to all lawful access, use or disclosure of the Borrower’s particulars, data and information in the application by the Lender which may include but shall not be limited to purposes necessary by law, to promote or sustain the business of the Lender; and the Borrower waives any claims the Borrower may have against the Lender arising from any such access, use or disclosure.

We are NDPR Compliant. By signing and executing the offer letter, you agree to the storage and usage of your data by LSETF in accordance with our privacy policy.

14. Acceptance

By clicking “I Accept”, paying equity contribution, or drawing down on the loan, the Borrower confirms full acceptance and understanding of these Terms & Conditions and irrevocably agrees to be bound by them.