Terms of Service

1. Introduction and Acceptance

Welcome to Preferred Finance Company Limited ("Preferred Finance," "we," "us," or "our"). These General Terms of Service ("Terms") constitute a legally binding agreement between you ("Customer," "Borrower," "you," or "your") and Preferred Finance Company Limited, a finance company duly licensed by the Central Bank of Nigeria (CBN).

By accessing our website at www.preferredfin.com, submitting a loan application, utilizing any of our financial services, or entering into any agreement with us, you acknowledge that you have read, understood, and agree to be bound by these Terms, along with our Privacy Policy and any other applicable policies or agreements.

If you do not agree to these Terms, you must not access our website or use our services.

2. About Preferred Finance Company Limited

Preferred Finance Company Limited is a finance company licensed and regulated by the Central Bank of Nigeria. We provide a comprehensive range of financial services including:

• Personal Loans
• Business Loans (SME Loans)
• Education Loans
• Contract Finance
• Local Purchase Order (LPO) Finance
• Automobile Finance
• Project Finance
• Working Capital Finance
• Payday Loans
• Fixed Deposit Services
• Other specialized financial services

Our services are designed to meet diverse financial needs with competitive rates, flexible terms, and fast approval processes.

3. Eligibility and Account Requirements

3.1 General Eligibility

To be eligible for our services, you must:

• Be at least 18 years of age or the age of majority in your jurisdiction
• Be a Nigerian citizen or legal resident with valid identification
• Possess the legal capacity to enter into binding contracts
• Provide accurate, complete, and truthful information
• Have a valid Bank Verification Number (BVN)
• Maintain an active bank account with a Nigerian financial institution
• Not be involved in any bankruptcy proceedings or insolvency

3.2 Business Loan Eligibility

For business loans, additional requirements include:

• Valid business registration with the Corporate Affairs Commission (CAC)
• Active business operations for a minimum period (as specified per product)
• Submission of financial statements and business documentation
• Compliance with all relevant regulatory requirements

4. Loan Application and Approval Process

4.1 Application Process

Our streamlined four-step loan process includes:

1. Application Submission: Complete and submit your loan application through our website or designated channels with all required documentation.
2. Verification and Assessment: We review your application, verify submitted information, and conduct credit assessments.
3. Approval and Offer: Upon approval, we present you with a formal loan offer detailing terms, interest rates, repayment schedule, and conditions.
4. Disbursement: After accepting the offer and completing all requirements, funds are disbursed to your designated bank account.

4.2 Right to Decline

Preferred Finance reserves the right to approve or decline any loan application at our sole discretion. We are not obligated to provide reasons for declining an application. A declined application does not establish any liability on our part.

4.3 Information Accuracy

You warrant that all information provided in your application is accurate, complete, and not misleading. Provision of false or misleading information constitutes fraud and may result in immediate loan termination, legal action, and reporting to relevant authorities.

5. Loan Terms and Conditions

5.1 Interest Rates and Charges

Interest rates and charges vary by loan product and are determined based on factors including creditworthiness, loan amount, tenure, and risk assessment. All applicable rates, fees, and charges will be clearly disclosed in your loan agreement before disbursement.

Charges may include but are not limited to:

• Interest charges (calculated using methods specified in your loan agreement)
• Processing fees
• Management fees
• Late payment penalties
• Legal and recovery costs

5.2 Loan Disbursement

Upon approval and completion of all documentation, loan funds will be disbursed to your designated bank account. Disbursement timelines vary by product but typically occur within the timeframe specified in your loan agreement. We are not liable for delays caused by banking systems or third-party service providers.

5.3 Repayment Obligations

You agree to repay the loan amount, interest, and all applicable charges according to the repayment schedule in your loan agreement. Repayment methods include:

• Direct debit from your designated bank account
• Standing order payments
• Manual transfers to our designated account
• Post-dated cheques (where applicable)
• Other payment methods as agreed

5.4 Default and Consequences

Default occurs when you fail to make payment when due or breach any term of your loan agreement. Upon default, we may:

• Charge late payment fees and penalty interest
• Report the default to credit bureaus
• Demand immediate payment of the entire outstanding balance
• Enforce security interests or collateral
• Engage debt collection agencies
• Initiate legal proceedings
• Recover all costs associated with collection and legal action

6. Security and Collateral

Depending on the loan product, we may require security or collateral. Types of security may include:

• Personal guarantees from directors or third parties
• Corporate guarantees
• Fixed and floating charges on assets
• Mortgage over real property
• Assignment of receivables or contracts
• Domiciliation of accounts
• Cash collateral or deposits
• Insurance policies

All security arrangements will be documented in separate security documents. You agree to execute all required security documentation and perfect all security interests as required by law.

7. Use of Loan Proceeds

You agree to use loan proceeds solely for the purpose specified in your loan application and agreement. Misuse of loan funds may constitute a breach of contract and grounds for immediate loan recall. We reserve the right to monitor the use of loan proceeds and request documentation evidencing proper utilization.

8. Credit Bureau Reporting

By accepting these Terms, you authorize Preferred Finance to:

• Obtain your credit report and credit score from licensed credit bureaus
• Report your loan performance (both positive and negative) to credit bureaus
• Share your credit information with other financial institutions as permitted by law
• Verify your identity and credit history through third-party services

Your credit history will impact your ability to access future financial services.

9. Fixed Deposit Services

For fixed deposit products, the following terms apply:

• Deposits are subject to agreed tenure and interest rates
• Early withdrawal may result in penalty charges and forfeiture of interest
• Interest may be paid monthly, quarterly, annually, or at maturity as agreed
• Renewal terms are subject to prevailing interest rates at maturity
• Deposits may be used as collateral for loans

10. Website Use and Digital Services

10.1 Acceptable Use

When using our website and digital services, you agree not to:

• Violate any applicable laws or regulations
• Infringe on intellectual property rights
• Transmit viruses, malware, or harmful code
• Attempt unauthorized access to our systems
• Use automated systems to access our services without permission
• Interfere with the proper functioning of our website
• Impersonate another person or entity
• Collect or harvest personal information of other users

10.2 Account Security

You are responsible for maintaining the confidentiality of your account credentials. You must notify us immediately of any unauthorized use of your account. We are not liable for losses resulting from unauthorized use of your account before we receive notice of such unauthorized use.

10.3 Website Availability

While we strive to maintain uninterrupted service, we do not guarantee that our website will be available at all times. We may suspend access for maintenance, updates, or unforeseen circumstances without liability.

11. Privacy and Data Protection

We are committed to protecting your personal information in accordance with the Nigeria Data Protection Act (NDPA) 2023 and other applicable data protection laws. Our collection, use, storage, and disclosure of your personal information are governed by our Privacy Policy, which forms part of these Terms.

By using our services, you consent to:

• Collection and processing of your personal and financial information
• Verification of information through third-party sources
• Disclosure to service providers, regulators, and as required by law
• Use of information for credit assessment, risk management, and service improvement
• Retention of information for the duration required by law

12. Communications and Notifications

You agree to receive communications from us through various channels including:

• Email to your registered email address
• SMS to your registered phone number
• Phone calls
• Push notifications through our mobile application
• Posted notices on our website
• Physical mail to your registered address

You are responsible for ensuring that your contact information is current. Communications sent to your last known contact details will be deemed received.

13. Intellectual Property Rights

All content on our website, including text, graphics, logos, images, software, and other materials, is the property of Preferred Finance Company Limited or our licensors and is protected by Nigerian and international intellectual property laws.

You may not:

• Copy, reproduce, or distribute our content without written permission
• Modify, create derivative works, or reverse engineer our systems
• Use our trademarks or branding without authorization
• Remove or alter copyright notices or proprietary markings

14. Third-Party Services and Links

Our website may contain links to third-party websites or integrate third-party services. We are not responsible for the content, privacy practices, or terms of service of third-party websites. Your use of third-party services is at your own risk and subject to their terms and conditions.

15. Representations and Warranties

You represent and warrant that:

• All information provided to us is accurate, complete, and truthful
• You have the legal capacity and authority to enter into these Terms
• You are not subject to any restrictions that prevent you from borrowing
• There are no pending legal actions that may affect your ability to repay
• You will notify us immediately of any material changes in your circumstances
• You have not withheld any information that may be material to our lending decision

16. Limitation of Liability

To the maximum extent permitted by law:

• Preferred Finance shall not be liable for any indirect, incidental, special, consequential, or punitive damages
• Our total liability for any claims shall not exceed the amount of fees paid by you to us in the six months preceding the claim
• We are not liable for losses caused by circumstances beyond our reasonable control (force majeure)
• We are not responsible for errors, delays, or failures caused by third-party service providers
• We do not guarantee specific outcomes or results from our services

Nothing in these Terms excludes or limits liability that cannot be excluded or limited under Nigerian law, including liability for fraud or fraudulent misrepresentation.

17. Indemnification

You agree to indemnify, defend, and hold harmless Preferred Finance Company Limited, its directors, officers, employees, agents, and affiliates from and against any claims, liabilities, damages, losses, costs, or expenses (including reasonable legal fees) arising from:

• Your breach of these Terms
• Your violation of any law or regulation
• Your violation of any rights of third parties
• Your misuse of our services
• Any fraudulent or illegal activity on your part

18. Force Majeure

We shall not be liable for any failure or delay in performing our obligations under these Terms due to circumstances beyond our reasonable control, including but not limited to acts of God, war, terrorism, civil unrest, government actions, pandemics, natural disasters, power failures, telecommunications failures, or industrial disputes.

19. Regulatory Compliance

Preferred Finance operates in compliance with all applicable Nigerian laws and regulations, including:

• Central Bank of Nigeria (CBN) regulations
• Banks and Other Financial Institutions Act (BOFIA)
• Nigeria Data Protection Act (NDPA) 2023
• Money Laundering (Prevention and Prohibition) Act
• Consumer Protection Framework
• Credit Reporting Act

You agree to cooperate with us in meeting all regulatory requirements and to provide any information or documentation reasonably requested for compliance purposes.

20. Anti-Money Laundering and Know Your Customer (KYC)

We are committed to preventing money laundering and terrorist financing. You agree to:

• Provide valid identification and supporting documentation
• Disclose the source of funds for transactions
• Cooperate with enhanced due diligence procedures when required
• Update your information as requested

We reserve the right to refuse service, freeze accounts, or report suspicious activities to relevant authorities.

21. Complaints and Dispute Resolution

21.1 Complaints Procedure

If you have any complaints or concerns about our services, please contact us through:

• Email: info@preferredfin.com
• Phone: Our customer service hotline
• Written correspondence to our registered office

We will acknowledge receipt of your complaint within 48 hours and endeavor to resolve it within a reasonable timeframe.

21.2 Escalation

If you are not satisfied with our resolution, you may escalate your complaint to:

• The Central Bank of Nigeria Consumer Protection Department
• The Finance Houses Association of Nigeria
• Other relevant regulatory bodies

21.3 Governing Law and Jurisdiction

These Terms shall be governed by and construed in accordance with the laws of the Federal Republic of Nigeria. Any disputes arising from these Terms shall be subject to the exclusive jurisdiction of the courts of Nigeria.

21.4 Alternative Dispute Resolution

Before initiating legal proceedings, parties agree to attempt resolution through mediation or arbitration in accordance with the Arbitration and Mediation Act of Nigeria.

22. Amendments to Terms

We reserve the right to modify, amend, or update these Terms at any time. Changes will be effective immediately upon posting on our website. We will make reasonable efforts to notify you of material changes through email or prominent notice on our website.

Your continued use of our services after changes are posted constitutes acceptance of the modified Terms. If you do not agree to the changes, you must discontinue use of our services.

For existing loan agreements, amendments will not affect your contractual rights and obligations under your specific loan agreement unless mutually agreed in writing.

23. Assignment

We may assign, transfer, or delegate our rights and obligations under these Terms or any loan agreement to any third party without your consent. This includes but is not limited to assignment to affiliated entities, successors, or in connection with merger, acquisition, or sale of assets.

You may not assign, transfer, or delegate your rights or obligations under these Terms or any loan agreement without our prior written consent.

24. Severability

If any provision of these Terms is found to be invalid, illegal, or unenforceable by a court of competent jurisdiction, such provision shall be modified to the minimum extent necessary to make it valid and enforceable. If modification is not possible, the provision shall be severed, and the remaining provisions shall continue in full force and effect.

25. Waiver

Our failure to enforce any right or provision of these Terms shall not constitute a waiver of such right or provision. No waiver shall be effective unless made in writing and signed by an authorized representative of Preferred Finance.

26. Entire Agreement

These Terms, together with your loan agreement, Privacy Policy, and any other applicable policies or agreements, constitute the entire agreement between you and Preferred Finance regarding our services and supersede all prior agreements, representations, and understandings.

27. Survival

Provisions of these Terms that by their nature should survive termination shall survive, including but not limited to provisions relating to indemnification, limitation of liability, dispute resolution, and intellectual property rights.

28. Contact Information

For questions, concerns, or inquiries regarding these Terms or our services, please contact us at:

29. Acknowledgment

By using our services, you acknowledge that:

• You have read and understood these Terms in their entirety
• You have had the opportunity to seek independent legal advice
• You agree to be bound by these Terms and all applicable policies
• You understand the consequences of defaulting on loan obligations
• You have provided accurate and complete information