TERMS & CONDITIONS FOR USSD LOAN PRODUCT
The Terms and Conditions herein contained govern the provision of the USSD Loan Product.
(A) USSD- LBF Refinance Terms & Conditions
1. An existing pre-qualified LBF loan can be refinanced only once, if a Borrower needs a second refinancing then the request should be channeled through the nearest LBF branch or call center via telephone number 0709 900 000
2. Only prequalified Borrowers are eligible to apply for the LBF loan refinancing via the USSD application.
3. Approved USSD LBF Loan refinancing will attract the following charges
(i) Security/commissioning/Search Fees Kes 2,500
(ii) Processing Fees Kes 2,000.
(iii)Tracking Fees Kes 1,700
4. The interest rate to be charged on any refinanced LBF loan will be similar to the interest rate applied on the original loan.
5. After disbursement of the refinanced LBF Loan via USSD, the borrower must within 7 days submit news cheques as per the new loan schedule, failure to which Platinum Credit Limited will continue banking the cheques in its custody. If the cheques are not submitted after 30 days of disbursement of the USSD Loan, the Lender will commence the repossession process of the security.
6. USSD loan disbursement will be done via M-PESA up to a maximum amount of Kes 140,000. Any higher amounts will be disbursed via the borrower’s bank account.
7. The terms and conditions under which the original loan was approved will apply to the new refinanced USSD loan, in addition to the news terms which are specific to the USSD loan.
8. The maximum amount that can be approved and disbursed under the USSD LBF loan product is Kes 250,000
9. Each eligible loan applicant will be provided with a specific maximum amount that they can apply for, this amount shall be determined during pre-qualification.
10. The existing security and security agreement for the original loan shall be used as a continuing security for the new USSD loan.
11. Only one LBF Loan account/facility can be refinanced where the borrower has two existing loans.
12. In case of default, the normal collections process as per the original terms and conditions of the refinanced LBF loan will apply.
13. USSD loan applicant (borrower) should read and familiarize themselves with the general terms and conditions of LBF loans which are listed below.
14. The Platinum Credit Ltd (the Lender) is not liable for any acts of fraud committed by third parties using the borrower’s mobile phone or account details. The borrower is advised to exercise due care to ensure that no unauthorized persons have access to their mobile phones or account details.
GENERAL TERMS & CONDITIONS FOR USSD LBF PRODUCT
TERMS AND CONDITIONS
WHEREAS the borrower has applied to PLATINUM CREDIT LIMITED hereinafter referred to as the “Lender” for the loan facility described above and the Lender has agreed to grant the loan facility, it is hereby agreed as follows:
1. The Borrower has provided the collateral described above specifically to secure the loan and in the event of default, the Lender will exercise its right to realize the collateral and recover any unpaid portion of the loan plus all costs including but not limited to loan charges, legal and any other recovery costs.
2. Default will be deemed to have occurred if the Borrower fails to remit monthly installments on their due date.
3 Where a motor vehicle has been provided as collateral, the borrower undertakes to:
3.1 Cause the motor vehicle to be and remain registered jointly with the Lender during the duration of the loan and to deposit the Log Book relating to the motor vehicle together with a separate signed but undated Transfer of Ownership Form in respect of the motor vehicle with the Lender.
3.2 Keep and maintain the vehicle in good order and condition (fair wear and tear only excepted) and will be fully responsible for any loss thereof or damage thereto however occasioned.
3.3 Keep the vehicle insured at all times. The Lender shall be entitled to the full benefit of the Insurance Policy thereof including claims that might at any time be outstanding. Any monies received by virtue of such insurance shall at the discretion of the lender be applied in replacing or restoring any loss or damage in respect of which the same shall be received or in or towards liquidation of the amount for the time being due by the borrower to the lender under this agreement.
3.4 Not use the motor vehicle nor permit it to be used for any purpose not permitted by the terms and conditions of the Insurance Policy nor permit to be done any act or thing by reason of which such Insurance Policy may be invalidated.
3.5 Not take, or permit to be taken, the motor vehicle out of the Republic of Kenya.
3.6 Punctually pay all licenses, duties, fees, and registration charges as and when they fall due.
3.7 Endorse the Lender as the principal beneficiary of any dues arising from an insurance claim relating to the motor vehicle used as security.
3.8. The Borrower should ensure that he/she has taken due care to enable the tracking of the motor vehicle used as security through, but not limited to the following obligations:
3.8.1 In the event that the vehicle will not be in use for any period of the loan and within not less than one month from obtaining the facility, notify the lender of the specific dates, and arrange to have the said Motor Vehicle to be held at an approved yard.
3.8.2 Should a tracking device develop a technical fault within the course of this loan agreement, the Lender and the tracking company service provider will contact the Borrower. It’s the Borrower’s responsibility to cooperate with the Lender and the service provider to ensure that the vehicle is submitted to the service provider for issue resolution, and restoration of the transmission signal to normal status. In the event that a borrower fails to cooperate, the Lender will institute repossession procedures of the affected motor vehicle after 24 hours from notification, for storage at a designated yard, at the customer’s cost.
4. Upon full payment of the loan and related charges, the Lender shall return the title documents of the collateral provided by the Borrower and exit the joint ownership of the same with the Borrower.
5. This agreement is governed by all the terms and conditions of the Movable Property Security Rights Act No. 13 Laws of Kenya.
6. The Borrower authorizes the Lender to access any information available to assess his/her application and also gives the Lender 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 the Lender in respect of such disclosure.
7. The Lender is also at liberty to discount on or trade in the debt arising from this loan without making any further reference to the borrower.
8. Unpaid cheques will be subjected to late payment penalty of 10% of the cheque amount and actual bank charges or Kes 3,000/- whichever is higher within 7 days from the due date and a further 15% of the cheque amount as collection charges thereafter. The installment defaulted upon will be considered as a rescheduled loan as per clause 9 below.
9. Rescheduled installments will be subjected to a rescheduling fee of 10% of the installment. Rescheduling is allowed once per installment.
10. For loans settled in a period less than two months, full origination costs and interest will be recovered.
11. The Lender will collect full interest accrued on any account settled after the final payment due date as per original contract.
12. In the event of Permanent Total Disability or Death, the outstanding Loan amount will be paid by the Insurer.
13 All loan facilities borrowed via mobile platforms will be linked to a pre-existing charged collateral, until both facilities are fully paid.
14 By signing this contract, you authorize the Lender to access your credit history from a registered credit reference bureau.
(B) USSD- Civil Servants (CS) Top-Up Loans- Terms & Conditions
1. Pre-qualification for the USSD civil servants loan is at the discretion of the Lender
2. Normal disbursement charges apply.
3. USSD loan disbursement will be done via M-PESA up to a maximum amount of Kes 140,000, any higher amounts will be disbursed via the borrower’s bank account.
4. The maximum amount that can be approved and disbursed under the USSD Civil Servants loan product is Kes 250,000
5. Each eligible loan applicant will be provided with a specific maximum amount that they can apply for, this amount shall be determined during pre-qualification.
6. The USSD civil servants loan will be governed by the general loan agreement, terms and conditions listed below, in additions to specific terms and conditions for each approved loan.
7. In case of default, the normal collections process as per the general loan agreement, terms and conditions of civil servants will apply.
8. USSD-Civil Servants loan applicant/borrower should read and familiarize themselves with the general loan agreement terms and conditions of civil servants loans which are listed below.
9. The Lender is not liable for any acts of fraud committed by third parties using the Borrower’s mobile phone or account details. The Borrower is advised to exercise due care to ensure that no unauthorized persons have access to their mobile phones or account details.
GENERAL LOAN AGREEMENT TERMS AND CONDITIONS FOR CIVIL SERVANTS USSD PRODUCT
1. The Loan
1.1. At the Borrower’s request, Platinum Credit agrees to make available to the Borrower the loan amount shown in the Schedule on the terms and conditions set out in this agreement.
1.2. The details of the loan are as shown overleaf.
1.3. The Borrower has the right to repay the principal amount of the loan within three business days from the date of disbursement without incurring any costs. This repayment must be done at Platinum Credit’s bank account, in cleared funds.
1.4. By signing this document or by imprinting his or her left thumbprint on this document, the Borrower acknowledges and accepts the terms and conditions upon which payment of the loan amount shall be made by Platinum Credit.
2.1. The monthly interest charged on your loan shall be as per the rate schedule in 2.2 for Civil Servant Loans and rate schedule 2.3 for Asset Finance below. As a benefit for longer-term borrowing, Platinum Credit shall discount the monthly interest rate as set out below. These discount rates will only be applicable in the event of the borrower effecting payments as scheduled and over the term agreed with Platinum Credit. Should you wish to prepay the loan, the discount will be forfeited and the interest rate applied shall be in line with the schedules 2.2 and 2.3 below.
2.2. The discounted rates per month applicable on the amount borrowed on Civil Servant Loans are as follows:-
1-2 months – [ 20%], 3-5 months – [15 %], 6-8 months – [10 %], 9-15 months – [7.5 %], 16-20 month – [ 6.5%], 21-24 months [6%], 25 – 30 months – [ 5.5%], 31 – 36 months – [ 5.0%], 37 – 40 months – [ 4.5%], 41 -48 months [3.75%], 49-60 Months [3.75%].
2.3. The discounted rates per month applicable on the amount borrowed on Asset Finance are as follows:-
1-2 months – [20%], 3-5 months – [15 %], 6-8 months – [10 %], 9-12 months – [5 %]
2.4. Interest shall be calculated Monthly. The interest shall apply to the initial capital sum at a flat rate per month according to the terms referred to in 2.2 and 2.3 above. If the borrower fails to pay any amount which the borrower owes Platinum Credit in terms of this agreement on the due date of such amount, Platinum Credit shall be entitled to charge interest on the amount the borrower has not paid or delayed to pay at the same rate as that stated in Clause 2.2 above.
2.5 In the event of early settlement, loan administration fees will be charged in full.
2.6 Due to market conditions, Platinum Credit may increase the interest charge by giving you one calendar months’ notice in advance
3.1 The Borrower must repay the loan in the installments shown overleaf.
3.2 The Borrower agrees that Platinum Credit shall have the right to deduct the monthly installments in full as set out in the schedule below directly from the Borrower’s salary as deductions from his or her employers payroll.
3.3 The Borrower hereby gives Platinum Credit 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 agreement has been paid.
3.4 In the event of the Borrower’s death or permanent disability, the Borrower or his estate will not be liable for the repayment of any outstanding repayments.
3.5 No cash should be handed to an employee. Platinum Credit shall not take ANY responsibility for money paid to any of its employees. All cash deposits should be made to our Bank accounts.
3.6 If payment is made by cheque or banker’s cheque or electronic funds transfer, 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. Costs and Charges
The Borrower agrees that, if Platinum Credit has to use lawyers because the Borrower has not carried out any part of this agreement, the Borrower will have to pay Platinum Credit all the costs due to Platinum Credit’s lawyers.
As a responsible lender, Platinum Credit has the right to insure the loan in case of death or disability on the part of the Borrower.
6.1 In the event of
(i) Any failure by the Borrower to pay any amount which is owing to this agreement in full and on the dates he or she has to, or
(ii) Any other breach by the Borrower of the terms of this agreement;
(iii) Any claim that the Borrower has failed to carry out his/her duties under this agreement;
then the full balance due under this agreement together with any penalty interest and all other charges and expenses owing to the Lender by the Borrower shall become immediately due and payable to the Lender and without giving notice to the Borrower or affecting any of the Lender’s rights under this agreement. The Lender shall be entitled to terminate this agreement and claim/or recover from the Borrower any damages/losses it, may have suffered as a consequence.
6.2 In the event of a default by the Borrower in making payment the Lender shall have the right to use any money paid by the Borrower to first pay legal and other costs, then interest and then the actual loan amount.
6.3. The Lender reserves the right to engage third-party debt collectors to recover any total outstanding balance at the debtor’s cost.
6.4 Please note that the responsibility to ensure timely payment of the installments lies with the Borrower, the company reserves the rights to charge and capitalize interest on late payments and to recover it either during or after the contractual term of the loan.
6.5 The amount owing by the Borrower to the lender it at any time may be shown by a certificate or statement in which The Lender’s Officer has worked out and has stated as amount owing. The certificate or statement will be a proof of the amount owed to Platinum Credit by the borrower 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. Asset Financing
7.1 In the event that the Borrower has applied for a loan to finance the purchase of an Asset, the Lender shall require the Borrower to maintain a comprehensive insurance policy cover in respect of the Asset during the term of the loan.
7.2 The Borrower undertakes additionally that he/she shall be solely responsible for costs related to registration of any Asset in their favour, its insurance cover and any legal fees.
7.3 The Borrower consents to the delivery of the following documents to the Lender upon approval of the loan and delivery of the Asset:
7.3.1 the deed of title or logbook in respect of the Asset;
7.3.2 the transfer forms in respect of the Asset;
7.3.3 the duly completed Initial Notice(relating to the Asset) in the prescribed form.
7.3.4 the comprehensive insurance policy documents in respect of the Asset. The Borrower acknowledges that the Lender shall be entitled to custody of the said documents pending settlement of the loan.
7.4 The Borrower shall give notification to both the Lender and the Supplier of the Asset of any discrepancy with regard to the Asset(s) within 15 days of delivery referring to the invoice number and date of purchase.
7.5 In the event of default by the Borrower, the Lender will be entitled to reposes and dispose of the Asset being financed in such manner as it may in its sole discretion determine to be in its interest and the Borrower acknowledges that he/she will be obliged to cooperate accordingly.
7.6 All Assets that are to be delivered to any Lender’s Branch will attract a minimum charge of KShs 300.00 subject to change.
8.1 This agreement is the whole agreement between the Lender and the Borrower. It cannot be changed unless the change is put in writing and signed by both Platinum Credit and the Borrower.
8.2 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.
8.3 The Lender will give at the Borrowers request a statement setting out all deductions from his/her salary, outstanding balance and any amount payable in arrears.
8.4 The Borrower authorizes the Lender to access any information available to assess his or her application, and also gives the Lender 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 Platinum Credit in respect of such disclosure.
8.5 By signing this contract, you authorize the Lender to access your credit history from a registered credit reference bureau.