The Micro Finance Institution (hereinafter REFERRED TO AS THE “INSTITUTION”) may approve or decline an application or credit facility at its absolute discretion. The INSTITUTION is under no obligation to disclose any reason(s) for the decline or approval of a credit facility.
Interest
The borrower (applicant of the credit facility) will pay interest on the facility at such rate as prevailing at the time of the approval of the credit facility. This shall be communicated on the final offer letter.
Interest rate and other conditions of the facility may be varied or changed at any time at the option of the bank in light of prevailing market conditions, with notice to borrower.
Loan Disbursement
Disbursement will be done upon completion of all the legal formalities and documentations, including perfection and registration where necessary, of the documents appertaining to security for repayment.
The approved loan amount shall be paid into the Borrower’s Loan Repayment account with the INSTITUTION at the branch where the application was processed.
Repayment Instalments- Flat Method
The credit facility will be repaid together with interest payable by the borrower by a number of equal monthly instalments over the tenure. The borrower will be responsible for any repayment extending beyond the initially agreed date due to delayed payments. All payments shall be made in Leones in cleared funds during normal banking hours. If any sum falls for payment on a day which is not a day on which the INSTITUTION is open for business, it shall be made on the day immediately proceeding the day on which the INSTITUTION is open for business.
Default
In the event of default, the Borrower agrees to pass lien to other account balances and any sums/balance invested with the Creditor In the event of default in making one payment on the due date, the outstanding principal of the amount of the credit facility and the accrued interest shall become immediately due and payable. A phone call, statement or demand signed by the authorized officer of the INSTITUTION shall be conclusive evidence that a sum is due and owing. The INSTITUTION may at its own discretion agree to amend or modify the terms of payment of the facility arising out of any default. The INSTITUTION also reserves the right to pass on collection of the debt in the event of default to a third party.
The Creditor has the right to cede or assign any rights under this loan to any person and in such events the Debtor agrees to accept such
Charges, Fees, Penalties
The INSTITUTION reserve the right to charge such fees as it may from time to time publish in its tariff of charges which can be obtained from any branch or authorized staff of the INSTITUTION. A processing fees and commission shall be charged for the loan which may be advanced and is payable up front.
Insurance
The INSTITUTION at its sole discretion shall take out a credit life insurance policy on behalf of the borrower. The borrower shall reimburse the INSTITUTION for the premium payment and this shall be paid up front.
The INSTITUTION, in repayment of the loan, will apply all proceeds received by the INSTITUTION in respect of any claims made under the credit life insurance policy. The borrower shall be responsible for any shortfalls after proceeds of claim have been applied in reduction of the credit facility. Notwithstanding the credit life policy, the borrower shall be primarily liable for the credit facility until it is fully repaid.
Cost and expenses
The borrower shall indemnify the INSTITUTION for any cost incurred by the INSTITUTION in taking any steps to obtain monies due under the credit facility including cost of enforcement of any security and legal costs.
Set-off and consolidation
The INSTITUTION may at any time and without notice combine all or any of the borrowers account and liabilities with the INSTITUTION or any of its affiliates whether single or jointly with any person or set off all or any monies standing to the credit of such account(s) including the borrower’s deposits with the INSTITUTION or any of its affiliates, whether matured or not ,towards satisfaction of any of the borrower’s liabilities to the INSTITUTION or any of its affiliates whether as principal or surety, actual or contingent, primary or collateral, singly or jointly.
The Borrower in no uncertain term grants the Creditor irrevocable authority to access his/her account with respect to the above.
Waiver
No indulgence by the INSTITUTION in respect of any of its rights will operate as a waiver of its said rights or constitute an ovation thereof.
Notices and Place of Payment
Any notice to be given to the borrower in connection with the credit facility shall be in writing and may be delivered to the borrower personally in which event it shall be deemed to have duly given at the time of receipt or may be given by prepaid registered mail to the borrower’s postal address specified in the application or such other postal addressees that may be notified by the borrowers to the INSTITUTION. Proof of posting of a registered envelope addressed to the borrower at the address aforesaid shall be proof of posting.
Other Conditions
The borrower(s) may not incur any additional debt over 10% (aggregate over the term of the loan) of the loan amount without the bank’s written consent.
In addition, the Creditor may obtain and / or give out credit reference from or to any in situation, individual, or credit bureau on the borrower, co-borrower(s) at any time whether or not there any loan outstanding with the Creditor.