1. THE AGREEMENT

1.1 This agreement sets out the complete terms and conditions (hereinafter called “Terms and Conditions”) which shall be applicable to the Mwananchi Credit Limited (hereinafter referred to as MCL) mobile lending platform.
1.2 These Terms and Conditions and any amendments or variations thereto take effect on their date of publication.

2. DEFINITIONS

2.1 In these Terms and Conditions, the following words and expressions bear the following meanings:

• MCL means Mwananchi Credit Limited.
• Credit Reference Bureau means a credit reference bureau duly licensed to collect and facilitate the sharing of borrower’s information.
• Borrower means the person at whose request MCL will advance a loan facility.
• Call Centre means MCL’s call center.
• Equipment includes your mobile phone handset and/or other equipment which when used together enables you to access the online lending platform.
• Products means the various loan facilities offered by MCL.
• Request means a request and/or instruction received by MCL from you or purportedly from you through the system and upon which request MCL is authorized to act.
• Services shall include any form of financial services or products that MCL may offer you pursuant to this Agreement and as you may from time to time subscribe to and “service” shall be construed accordingly.
• SMS means a short message service consisting of a text message transmitted from one mobile to another.
• System means MCL’s electronic lending platform and communications software enabling the borrower to communicate with MCL for the purposes of these services.
• Transaction costs means charges levied by other third-party service providers which includes but is not limited to Mpesa and bank transaction charges.
• We, our, and us means MCL and includes the successors and assigns of MCL.
• You and your means the borrower and includes the personal representatives of the Borrower.

3. ACCEPTANCE OF THE TERMS AND CONDITIONS

3.1 Before applying to MCL’s products on our system, you should first carefully read and understand these Terms and Conditions which will govern the use and operation of our system and the products and services accessible thereof.
3.2 By proceeding with registration, you are agreeing that you have accepted our Terms and Conditions on our official website. Furthermore, you will be deemed to have read, understood, and accepted these Terms and Conditions by following through all the prompts and completing a request transaction.
3.3 By accessing our system and completing a request, you agree to comply with and be bound by these Terms and Conditions and you affirm that these Terms and Conditions herein are without prejudice to any right that MCL may have with respect to the services or products offered in Law or otherwise.
3.4 The Borrower acknowledges that he or she fully understands the provisions of this Agreement and has entered into it voluntarily for his or her own benefit.
3.5 By accepting these Terms and Conditions, you authorize MCL to assess your credit score including but not limited to accessing your credit history from a registered Credit Reference Bureau.
3.6 These Terms and Conditions may be amended or varied by MCL from time to time and the completion of requests and continued use of this service constitutes your agreement to be bound by the terms of any such amendment or variation.

4. REGISTRATION

4.1 Our system requires that you register by creating an account with us to be able to access our various products.
4.2 You agree to be responsible for maintaining the confidentiality of your passwords or other account identifiers which you choose and all other activities that occur on your equipment.
4.3 You hereby agree and authorize MCL to obtain and procure your personal information contained in the IPRS from the Government of Kenya and you further agree and consent to the disclosure and provision of such personal information by the Government of Kenya to MCL.
4.4 You hereby authorize MCL to access any information available to assess your request, and also give MCL permission to subject your information to our robust credit scoring engine to ascertain your creditworthiness.
4.5 MCL reserves the right to request further information from you pertaining to your application for MCL services or products. Failure to provide such information within the time required by MCL may result in MCL declining your request for a loan facility.
4.6 If you do not accept all of these Terms and Conditions of Registration, then you should not proceed with the registration.
4.7 Upon successful registration, you are advised to read and familiarize yourself with the terms and conditions of each product as you shall be bound by the said terms and conditions of each product.

5. BORROWER’S EQUIPMENT AND RESPONSIBILITIES

5.1 You shall at your own expense provide and maintain in safe and efficient operating order your equipment for the purpose of accessing our system.
5.2 You shall be responsible for ensuring the proper performance of your equipment. MCL shall neither be responsible for any errors or failures caused by any malfunction of your equipment, nor shall MCL be responsible for any computer virus or related problems that may be associated with the use of our system.
5.3 You shall follow all instructions, procedures, and terms contained in these Terms and Conditions and any information and/or document provided by MCL concerning the use of our system.
5.4 You agree and acknowledge that you shall be solely responsible for the safekeeping and proper use of your equipment. You shall ensure that your equipment does not come into the possession of an unauthorized person. MCL shall not be liable for any loss occasioned by any Third Party who comes into contact with your equipment.
5.5 You shall immediately inform MCL through the Call Centre at +254 709 147000 in the event that you have reason to believe that your equipment has been used to complete a transaction fraudulently without your authorization, however, MCL shall not be liable for the said unauthorized infringement.

6. EXCLUSION OF LIABILITY

6.1 MCL shall not be responsible for any loss suffered by you should the system be interfered with or be unavailable by reason of the failure of your equipment or any other circumstance not within MCL’s control including, without limitation, force majeure or error, interruption, delay or non-availability of our system, terrorist or any enemy action equipment failure, loss of power, adverse weather or atmospheric conditions, and failure of any public or private telecommunications system.
6.2 MCL will not be liable for any losses or damages suffered by you as a result of or in connection with:

• Failure, malfunction, interruption, or unavailability of your equipment.
• Any fraudulent or illegal use of the online lending platform or equipment.
• Your failure to comply with these Terms and Conditions and any documentation or information provided by MCL in regards to the use of our system.
  6.3 All warranties and obligations implied by law are hereby excluded to the fullest extent permitted by the law.

7. INTELLECTUAL PROPERTY RIGHTS

7.1 You acknowledge that the intellectual property rights on our system (and any amendments, upgrades, or enhancements thereto from time to time) and all associated documentation that MCL provides to you through the system or otherwise are vested in MCL. You shall not infringe any such intellectual property rights. You shall not duplicate, reproduce, or in any way tamper with the system and associated documentation without the prior written consent of MCL.

8. YOUR REQUESTS

8.1 All requests received from your equipment will be presumed to be executed by you.
8.2 You hereby irrevocably authorize MCL to act on all requests received by MCL from you through the system and to hold you liable in respect thereof. MCL reserves the right and is entitled to accept and to act upon any request, even if that request is otherwise for any reason incomplete or ambiguous if, in its absolute discretion, MCL believes that it can correct the incomplete or ambiguous information in the request without any reference to you being necessary.
8.3 MCL shall be deemed to have acted properly and to have fully performed all the obligations owed to you notwithstanding that the request may have been initiated, sent, or otherwise communicated in error or fraudulently, and you shall be bound by any requests on which MCL may act if MCL has in good faith acted in the belief that such instructions have been sent by you.
8.4 MCL may, in its absolute discretion, decline to act on your request in accordance with the whole or any part of your request pending further inquiry or further confirmation (whether written or otherwise) from you.
8.5 You agree to and shall release from and indemnify MCL against all claims, losses, damages, costs, and expenses howsoever arising in consequence of, or in any way related to MCL having acted in accordance with the whole or any part of any of your requests (or failed to exercise) the discretion conferred upon it.
8.6 You acknowledge that MCL shall not be liable for any transaction, any activity, or any incident on your equipment whether or not occasioned by your negligence.
8.7 MCL is authorized to effect such orders in respect of your loan account as may be required by any court order or competent authority or agency under the applicable laws.
8.8 In the event of any conflict between any terms of any request received by MCL from you and these Terms and Conditions, these Terms and Conditions shall prevail.

TERMS & CONDITIONS FOR VARIOUS MCL USSD LOAN PRODUCTS

1. CIVIL SERVANTS’ CHECK OFF LOAN PRODUCT
2. TSC CHECK OFF LOAN PRODUCT
3. TERMS & CONDITIONS FOR CIVIL SERVANTS’ CHECK OFF LOANS

1. At the borrower’s request, Mwananchi Credit Limited agrees to make available to the Borrower the advised loan amount on the terms and conditions set out in this agreement.
   1.1. In the event of default, the Lender will exercise its right to recover any unpaid portion of the loan plus all costs including but not limited to accrued fees, accrued interest, cost of execution, recovery fees, or legal costs.
   1.1.1. Default will be deemed to have occurred if the borrower fails to remit monthly installments on their due date.

2. Interest

2.1. The total monthly interest rate chargeable is calculated on the total principal amount which includes capitalized appraisal fees. The interest rate per month subject to loan term is as follows:

  Interest Rate: 1.7% per month.

  Loan Term: 168 months (14 years).

  Loan Appraisal Fee: 7%.

  Loan Processing Fee: 3% for loans less than 120 months, 2.5% for loans of 120 months and above.

  Insurance Fee: 1.5% of the loan amount.

2.2. In accordance with globally accepted International Reporting Standards (IFRS), principal and interest repayments on the loan amortization schedule shall be calculated on the basis of reducing balance of up to a maximum of _____ subject to the loan term, which shall form the basis of calculating the outstanding amount due in the event of a prepayment. Interest shall be calculated monthly.
2.3. For accounts past their loan term, the unpaid accrued interest shall be charged in full.
2.4. In the event of prepayment, the processing fees shall be charged in full.
2.5. Alteration of Interest: Due to market conditions, the lender may alter the interest charges by giving the borrower one calendar month’s notice in advance.

3. COST OF CREDIT: FEES, CHARGES, AND TAXES

The cost of credit constitutes various fees that includes Appraisal fee, Monthly collection fee, Statement fee, Agency fee, and Administration Fees (Third party Settlements).
3.1. Appraisal fee of ____ of the loan amount is charged and capitalized at disbursement.
3.2. Collection Fees charged of Kshs 200 per month.
3.3. Certified Payoff statement shall be issued to the Borrower upon request and an upfront payment of the prerequisite fee of Kshs. 500.
3.4. Onboarding/Agency fees of ____  of disbursed amount (to be charged at account closure; early settlement/buy off) not applicable to top-up loans. The Agency fee caters for the discounted reimbursement of the Agency’s expenses.

3.5. Taxes: All payments to be made by the borrower in connection with these Terms and Conditions are calculated without regard to any taxes payable by the borrower. If any taxes are payable in connection with the payment, the borrower must pay MCL an additional amount equal to the payment multiplied by the appropriate rate of tax.

• Excise duty tax charged at 20% of fees amount shall be charged separately upon payment of the fees herein and remitted to KRA.
  3.7. The Borrower agrees that, if the Lender has to use lawyers because the Borrower has not fulfilled any or all obligations under this agreement, the Borrower will have to bear the legal costs due to the Lender’s lawyers.

4. Payment

4.1. The borrower must repay the loan in the installments as advised.
4.2. The borrower agrees that MCL shall have the right to deduct the monthly installments in full from the borrower’s salary as deductions from his or her Employer’s payroll.
4.3. The borrower hereby gives MCL the right to deduct monies owing to it from any unpaid wages or any other remuneration credits payable to the borrower if the borrower leaves the service of his/her employer for any reason before the total amount repayable under this facility has been paid.
4.4. In the event of the Borrower’s death, or Permanent Disability, the Borrower or his/her estate will not be liable for the repayment of any outstanding payments.
4.5. No cash should be handed to an employee or MCL’s agent. The Lender shall not take any responsibility for money paid to any of its employees. All cash deposits should be made to Mwananchi Credit Bank accounts through Bankers Cheque.
4.6. If payment is made by cheque or banker’s cheque, the payment is deemed to have been received on the date funds are cleared, and not on the date the cheque is deposited or electronic funds transfer initiated.
4.7. The Lender reserves the right to change the channel or mode of receiving payment from the Borrower. The Lender will communicate this change to the Borrower within a reasonable time.
4.8. The borrower acknowledges and accepts the Terms and Conditions in this document upon which payment of the loan amount shall be made.

5. Insurance

5.1. As a responsible lender, MCL has the right to insure the loan in case of death or disability on the part of the Borrower. If the borrower dies or becomes permanently and totally disabled, the loan’s insurance coverage will pay the outstanding balance fully and in the case of defined non-pre-existing critical illness; ____ of the loan balance is covered to a maximum of Kshs 1 million. The borrower or their next of kin must provide medical records or a death certificate as proof and for further guidance. Death by suicide is not covered. The insurance premium is part of the loan application fee.

6. Breach

6.1. In the event:

• a. Any failure by you to pay any amount which is owing to this agreement in full and on the dates you have to,
• b. Any other breach by you of the terms of this agreement;
• c. Any claim that you have failed to carry out his/her duties under this agreement; then the full balance due under this agreement together with any rollover interest and all other charges and expenses owing to MCL by you shall become immediately due and payable to MCL and without giving notice to you or affecting any of MCL’s rights under this agreement. MCL shall be entitled to terminate this agreement and claim/or recover from you any damages/losses it may have suffered as a consequence.
  6.2. In the event of a default by you in making payment, MCL shall have the right to use any money paid by you to first pay legal and other costs, then interest, and then the actual loan amount.
  6.3. MCL reserves the right to engage third-party debt collectors to recover any total outstanding balance at your cost.
  6.4. Please note that the responsibility to ensure timely payment of the installment lies with the borrower, the company reserves the right to recover all accrued interest due to late payments either during or after the contractual term of the loan.
  6.5. The amount owing by you to MCL at any time may be shown by a statement in which MCL’s Officer has worked out and has stated as amount owing. The statement will be proof of the amount owed to MCL by you and will be able to be used in any legal proceeding and will be accepted by the court on its own as correct unless the Borrower proves that it is incorrect.

7. General

7.1. This agreement is the whole agreement between Mwananchi Credit and the Borrower.
7.2. The Borrower acknowledges that he or she fully understands the provisions of this Agreement and has entered into it voluntarily for his or her own benefit.
7.3. Mwananchi Credit will give at the Borrower’s request a statement setting out all deductions from his/her salary, outstanding balance, and any amount payable in arrears.
7.4. The Borrower authorizes Mwananchi Credit to access any information available to assess his or her application and also gives Mwananchi Credit permission to register details of the conduct of the Borrower’s account with any credit bureau, and the Borrower waives any claim he or she may have against Mwananchi Credit in respect of such disclosure.
7.5. By signing this contract, the Borrower authorizes Mwananchi Credit Limited to access the Borrower’s credit history from a registered Credit Reference Bureau.

8. Loan Cancellation
9. The Borrower has the right to cancel the loan at any stage of the loan processing or after receipt of the funds.
   b. Loan cancellation before disbursement of the funds should be communicated in writing through the email or an official letter to Mwananchi Credit.
   c. Where the Borrower cancels the loan after receipt of the funds, the Borrower shall reimburse the disbursed amount within 72 hours of receipt of the said funds. This reimbursement should be communicated in writing through email, a phone call to the call center, or an official letter accompanied by proof of refund. Failure to comply with these requirements will result in the application of Clause 2 of the Terms and Conditions, which outlines the consequences of non-compliance, including potential penalties or additional charges