Loan Application & Agreement Form (Page 5 of 5) in pdf

CHAI SACCO SOCIETY LIMITED

TERMS AND CONDITIONS FOR LOAN APPLICATION

business or affairs of the Borrower outside the Society whether

such data and/or information is obtained after the Borrower ceases

All loans are granted in accordance with the loan policy basic

to be society’s customer or during the continuance of the

requirements

Society-customer relationship or before such relationship was in

contemplation:

1. A member must have ﬁnished six months and continuously contributed

a. For fraud prevention purposes;

for a minimum period of six months and a minimum contribution of Ksh

b. To licensed Credit Reference Bureaus or any other creditor;

12,000

c. To its external lawyers, auditors and other sub-contractors

2. In granting this loan, a member shall:

or persons acting as Society’s agents;

a) Produce the original copy of this loan form, a copy of identity card,

d. To any person who may assume the Society’s rights under

KRA pin attached with at least two (2) latest original pay slips duly

this Letter;

stamped and forwarded by the employer (Factory Unit Manager-FUM

e. If the Society has a right or duty to disclose or is permitted or

or Factory Accountant -FA)

compelled to do so by law; and

b) Submit a copy and original title /Logbook incase of colateral use.

f. For the purpose of exercising any power, remedy, right,

c) Not be granted loans exceeding four (4) times his/her deposits unless

authority, or discretion relevant to this facility, Letter or any

deposit is not part of the terms.

Transaction Document following the occurrence of an event

d) Not be allowed to suffer deductions including loan repayment in

of Default, to any other person or third party as well.

excess of 2/3 of his/her basic salary

13. The Borrower acknowledges and agrees that, notwithstanding the terms

e) Be required to attach not less than three (3) active members as

of any other agreement between the Borrower and the Society, a

guarantors whose sum of share savings is equivalent to the loan

disclosure of information by the Society in the circumstances

applied.

contemplated by this paragraph does not violate any duty owed to the

3. The dividends / rebates will be capitalised for members who have

Borrower either in common law or pursuant to any agreement between

borrowed vision Loan.

the Society and the Borrower or in ordinary course of Society business

4. The borrower will bear the legal and valuation charges for collateral use.

and the customs, usage and practice related thereto and further

Valuation and legal services will be provided by valuers and lawyers

authority from the Borrower and without inquiry by the Society as to

provided by the society.

the justiﬁcation for or validity of such disclosure.

5. Chai Sacco reserves the right to charge such rate or rates of interest as it

may in its sole discretion from time to time decide. The Sacco shall give the

Borrower notice prior to any change in the rate or rates of interest payable

Cooling off

and changes in the terms and conditions in such manner as permitted by

By signing this contract the borrower will be deemed to have exercised

the loan policy.

his/her freedom to enter into the agreement, understood the suitability of

6. In case of loan default, the society reserves the right at its discretion to:

the product and the terms and conditions of the contract.

a) Recover the outstanding loan balance from guarantors upon

notiﬁcation.

General

b) Attach any property, beneﬁts or emoluments directly attributed to the

1. The Borrower may not assign all or any part of his/her rights, obligations

member used as a security against the loan.

c) Charge a default interest rate or any other amount incurred by the

or beneﬁts under this agreement. Any notice or demand for payment by

society or its agents in recovering the defaulted loan

the Society shall be deemed to be properly served if it is delivered by

hand, or sent by registered post or facsimile to the address or facsimile

d) Upon notiﬁcation and subsequent lapse of grace period, list the

number set out in this agreement or to any other address or facsimile

member with the Credit Reference Bureau.

number the Borrower may notify the Society in writing. A notice or

7. Repayment of the facility will be effected directly through check-off from

your employer. Chai Sacco reserves the right to ensure the check-off

demand, if delivered by hand, shall be deemed to be received at the time

of delivery, if sent by registered post, shall be deemed to be received by

arrangements are ﬁnalized and conﬁrmed with your employer before

the Borrower 5 days after posting and if sent by facsimile, shall be deemed

release of funds. In the event that check off arrangements are not ﬁnalized

to be received at the time of transmission. Any failure or delay by the

as anticipated for whatever reason, your obligation to repay the loan will

remain and you will be expected to make direct payments into your loan

Society to exercise any right, power or privilege granted by law shall not

be deemed to be a waiver by the Society as to the exercise of such right,

account as they fall due, until your employer effects the check-off or until

power or privilege. You will be required to notify the Society promptly of

the loan is repaid in full, whichever will come earlier.

any change of address or place of employment during the period of the

8. Appraisal fee and interest will be charged as per the terms of product

borrowed

facility. Such notiﬁcation should be given in writing.

2. The Society shall be entitled to vary these Terms and Conditions from

9. Disbursement of the loan proceeds shall be credited to your Chai Sacco

time to time in the event of any change in applicable law or regulation or

Savings Account. In case you wish to transfer, the funds will be released to

in the application or interpretation thereof or the occurrence of any event

you by way of a Society Cheque or any other means at the prevailing cost,

which will also be debited to your account.

which in the sole opinion of the Society, materially and adversely affects

10. A non-refundable insurance fee will be charged on a monthly basis to

the Kenyan ﬁnancial market. Subject to the requirements of any statute,

notiﬁcation of any such variation shall be given to the Borrower either in

cover death and permanent disability to the borrower. The amount

writing or by publication thereof by such means as the Society may select

payable under this cover will be solely for clearing the outstanding loan or

as permitted by law and a variation so effected shall be binding on the

part thereof as at the date of the accident, depending on the extent of

disability caused. You will make necessary prior arrangements to ensure

Borrower

3. In the event that legal opinion or other action is necessary in relation to

that in the event of death or incapacitation, the matter is reported to the

your account or recovery of the debt, it is agreed that legal costs and all

Society without delay to facilitate lodging of a claim. Any claim made after

reasonable charges will be for your account.

6 months from the date of the accident/death will be time-barred and will

not be honored.

4. This offer is subject to the loan request being approved and is valid for one

(1) month up to and provides for full or partial drawdown of the facility.

11. For Conﬁdentiality of Information, the society may hold and process,

Failure to accept the terms of this agreement or to draw the facility by the

by computer or otherwise, any information obtained about the

date stated will constitute automatic cancellation of the facility approved.

Borrower as a consequence of this agreement.

12 The Borrower agrees that the Society may:

Acceptance of the Terms and Conditions contained in this agreement shall

i. Permit other lenders within the Society’s group to use personal

be indicated by the Borrower providing the Society with the original of this

data and any other information it holds about the Borrower on the

Agreement duly signed as evidence of acceptance of the terms and

Society’s customer system to bring to its attention products and

services which may be of interest to the Borrower.

conditions as stated. The Society recommends that the Borrower seeks

ii. The Borrower further agrees that the Society may disclose its data

independent advice on the terms of this agreement to help him/her to fully

understand what the facility involves and the potential consequences and

and / or information relating to the borrower including data and

implications for the Borrower agreeing to its terms.

information relating to any transaction Documents or the assets,

I have read, understood and undertake to comply, observe and be bound by the terms and conditions and tarriffs in

force which may be amended from time to time

Applicant signature ................................................................................................ Date ......................................................................................

Loan Application & Agreement Form Page 5

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