These Terms and Conditions apply to and regulate the provision of credit facilities advance by MKOBO Microfinance Bank Limited (”the Bank”). These standard Terms and Conditions together with our offer letter to you (“Offer Letter”) set out the terms governing this Loan Facility. It is important that you read the Offer Letter and these Terms and Conditions carefully and keep them for future reference.
A. LOAN
- The principal amount of the loan (“Principal Amount”) shall be as confirmed by The Bank to the Borrower after processing the application.
- By signing this agreement the Borrower agrees to enter into a Domiciliation Agreement authorizing its Employer to deduct the Repayment Amount as provided by the Bank, from the Borrower’s salary and remit the same directly to the Bank’s designated account.
- All Charges (including processing fee) applicable to the loan, which will be deducted, directly from the loan and the balance disbursed to the Borrower.
B. INTEREST
- Interest on the loan shall be charged at the prevailing rate as notified to you on your offer letter.
- The Bank may in its sole discretion change the prevailing interest rate for any reason and any such change shall be binding on the Borrower. Any change in interest rate shall become applicable on the Borrower’s account following a minimum of three (3) days written notice.
C. REPAYMENT
All payments due by the Borrower shall be deducted from the Borrower’s salary, and remitted to the Bank
In Particular:
- Repayment shall be in accordance with the Repayment Schedule.
- The Borrower shall be obligated to make repayments on each Repayment Date as detailed in the Repayment Schedule.
- To avoid repayment hassles, on the due date, loan repayment shall be by Direct Debit from the Borrower’s salary account linked to their debit/ATM card provided during the loan application.
- A one-off debit of ₦50 shall be debited from the Borrower’s ATM/Debit card as confirmation of the debit/ATM card.
- Borrowers that cease to have their repayment deducted at source with an existing obligation and fails to liquidate the loan. The bank will deduct all further loan repayment due from the Borrower via Direct Debit of the registered debit/ATM card on the Borrowers account.
- The Bank is not under any obligation to inform the Borrower before deduction of the scheduled monthly repayment or other charges that may have accrued due to the Borrowers non-payment and the said amount is debited form the registered debit/ATM card.
- The Borrower hereby agrees that non-payment of the amount owed by any Repayment Date shall render the Borrower in default and entitle the Bank to immediately take steps to recover the outstanding loan amount in accordance with clause F below.
D. USE OF CREDIT BUREAU
- The Bank will approach a dedicated Credit Reference Agency for a credit report on the applicant prior to disbursement of the loan.
- The Borrower authorizes the Bank to access any information available to it as provided by the Credit Agency.
- The Borrower also agrees that their details and the loan disbursement approval will be registered with the Credit Agency.
- In the event the Borrower wishes to access the credit report, the Bank will advise the Borrower of the contact details of the relevant credit agency and the Borrower waives any claims he/ she may have against the Bank in respect of such disclosure.
E. INFORMATION FROM EMPLOYER
The Borrower hereby consents to the Bank requesting and the Employer providing, relevant employee information to the Bank as itemized under the Employer’s Confirmation Section of the application form and any other information that the Bank may require.
F. DEFAULT
Default in terms of this Agreement will occur if:
- Repayment in full of the outstanding amount or interest, is not made on or before any Repayment Date in accordance with the Repayment Schedule;
- The Borrower voluntarily resigns from employment without liquidating the outstanding amount or any portion of the same.
- Any information, representation, warranty or assurance made or given by the Borrower in connection with the application for this loan or any information or documentation supplied by the Borrower, is later discovered to be misleading or materially incorrect; or
- The Borrower in any way perpetrates or attempts to or is involved in any act of fraud or other criminal activity in respect of the Bank or the Loan or does or omits to do anything, which may prejudice the Bank’s rights, terms of this Agreement or cause the Bank to suffer any loss or damage.
- Any other action by the Borrower or occurrence of an event categorized as a default or an event of default in the Offer Letter.
If a Default occurs as indicated above, all amounts outstanding under the loan facility shall immediately become due and payable to the Bank and the Bank shall be entitled to do the following.
- If (i) in the case of paragraph I above, the Bank has not received on a Repayment Date the total amount payable by the relevant date in accordance with the Repayment Schedule, or (ii) in the case of paragraphs II - V, the Bank shall immediately make a demand for the outstanding amount to be paid by the Borrower within the following twenty-four (24) hours.
- Where more than forty-eight (48) hours have elapsed since the Repayment Date or delivery of the demand notice as indicated in paragraph VI, and the Repayment Amount or any portion of it remains outstanding, the applicable interest rate shall automatically increase to an interest rate of 20% for any such unpaid amount for everyday the same remains outstanding.
- Following the Borrower’s default, the Bank reserves the right to assign its right, title and interest under the agreement to an external collections agency who will take all steps, within the bounds of the law, to collect the outstanding loan amount.
- The Bank also reserves the right to commence legal proceedings against the defaulting Borrower and is under no obligation to inform the Borrower before such proceedings commence.
- The Borrower shall reimburse the Bank for all costs and expenses (including legal cost) incurred by the Bank in connection with or incidental to the recovery of the loan. Interest on any amount, which becomes due and payable, shall be charged in accordance with these Terms and Conditions.
G. COMMUNICATION
The Borrower agrees that the Bank may communicate with them by sending notices, messages, alerts and statements in relation to this Agreement in the following manner:
- To the most recent address the Bank holds for the Borrower on file.
- By delivery to any email address provided during the application process.
- By delivery of an SMS to any mobile telephone number the Borrower has provided to the Bank.
- By delivery to the office address the Bank holds for the Borrower on file.
H. MISCELLANEOUS
This Agreement and any disputes arising out of or in connection with the same shall be governed by the laws of the Federal Republic of Nigeria and shall be subject to the jurisdiction of the courts in Lagos, Nigeria.
- If the Bank shall have reasonably determined that the introduction of, or a change in any applicable law or regulation or in the interpretation by any governmental or other regulatory authority charged with the administration or court of competent jurisdiction makes it apparent that it is unlawful, illegal or not feasible for the Bank or the Borrower to give effect to fund, or maintain or perform their obligations as contemplated under this Agreement the Bank shall immediately give notice of such occurrence to the Borrower and the commitment hereunder shall immediately be cancelled or discharged and the Borrower shall on the next succeeding Repayment Date or such earlier dates as may be required repay to the Bank the amount outstanding together with accrued interest thereon and any amounts due to the Bank under this Agreement.
- If the Bank does not strictly enforce its rights under this Agreement (including its right to insist on the repayment of all sums due on the Repayment Date) or grant the Borrower an indulgence, the Bank will not be prevented from insisting upon its strict rights at a later date.
- The Bank reserves the right to transfer or assign its rights and obligation under this Agreement (including its obligation to lend money to the Borrower or the amount owned under this Agreement) to another person.
- The Bank may inform the Borrower of a transfer/assignment of its rights hereunder if such a transfer results in a change in the administration of this Agreement.
- All the terms and conditions stated in this loan application have been read and understood by me and I hereby accept the terms and conditions.