1. Overview of the Nelgro Lease-to-Own Facility
Nelgro Financing Asset Management Limited ("Nelgro", "we", "us", or "the Lessor") provides asset-backed financing for commercial, agricultural, and industrial machinery to verified Nigerian enterprises, cooperatives, and sole proprietors ("the Lessee").
By submitting an application through Nelgro portals, executing a Master Lease Agreement, or providing identity credentials (NIN, BVN), the Lessee agrees to be legally bound by these terms, the Global Standing Instruction (GSI) mandate, and all statutory obligations under the laws of the Federal Republic of Nigeria.
2. Lease Structure, Down Payment, and Vendor Payment
- Down Payment: Prior to equipment delivery, the Lessee must pay a non-refundable down payment equal to 10% of the total asset package price via the authorized NelPay disbursement gateway.
- Vendor Direct Settlement: Nelgro pays the approved original equipment manufacturer (OEM) or vendor directly upon verification of down payment and execution of lease agreements. Under no circumstances are cash loans disbursed to the Lessee's personal bank account.
- Spread & Package Cost: All asset packages incorporate a statutory 50% financing spread amortized evenly across the agreed tenure (6, 12, 18, or 24 monthly installments).
3. Title, Ownership, and Certificate of Ownership
Legal title and ownership of all leased assets remain exclusively with Nelgro Financing Asset Management Limited throughout the active repayment tenure. The Lessee holds possessory rights strictly for commercial business operations.
Upon full settlement of all scheduled monthly installments, including all applicable principal and interest obligations, Nelgro immediately issues a formal Certificate of Ownership transferring full unencumbered legal title to the Lessee.
4. Global Standing Instruction (GSI) Direct Debit Authorization
In compliance with Central Bank of Nigeria (CBN) regulatory guidelines, the Lessee and their verified guarantors execute a binding Global Standing Instruction (GSI) mandate authorizing Nelgro and partnering commercial banks to debit any linked bank account associated with their Bank Verification Number (BVN) in the event of default on monthly installments.
5. Guarantor Liabilities and Physical Verification
Each equipment facility requires two verified guarantors possessing valid Nigerian identification (NIN/BVN). Guarantors confirm their commitment via digital magic links and assume joint and several liability for lease repayments should the primary Lessee fail to meet payment obligations.
Nelgro field inspection officers conduct in-person address verifications of the Lessee's business premises and guarantor residences prior to final credit sign-off.
6. Asset Use, Telematics, and GPS Tracking
For movable assets (including delivery tricycles, cargo vans, and fleet vehicles), Nelgro installs remote telematics and GPS tracking devices (included in the asset package). The Lessee agrees never to tamper with, disable, or remove telematics hardware. Nelgro retains the right to remotely immobilize assets if payments fall more than 14 days overdue or if the asset is relocated outside authorized Nigerian territories without prior written notice.
7. Early Settlement Policy (Zero Penalty)
Lessees may settle their remaining outstanding principal balance early at any point during the lease tenure with zero penalty or early termination fees, taking immediate title ownership.
8. Default, Repossession, and Dispute Resolution
Failure to settle scheduled monthly payments after notice constitutes default. Nelgro reserves the legal right to repossess leased machinery without court proceedings pursuant to the equipment security agreement.
These terms are governed by the laws of the Federal Republic of Nigeria. Any disputes arising from this agreement shall be submitted to the exclusive jurisdiction of the High Court of Lagos State.