Customer Code: <ClientID> Loan Number: <loan file #>
Creation Date <Loan Disbursement Date> Branch: <Branch Location>
BETWEEN
Advans Ghana Savings and Loans Ltd, a limited liability company duly licensed as a Savings and Loans Institution under the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930) whose registered office is at New Town Road AMA 1115, PO Box AN11426 – Accra North represented by its Branch Manager, (hereinafter referred to as “the Lender” ), on the one part And
<Client Name> located at <Client’s Address>, whose <National ID> number is <National ID number> hereinafter referred to as (the “Borrower”) on the other part.
WHEREAS:
(a) The Lender is a registered and licensed Savings and Loans Institution whose business is to provide adapted financial services primarily to micro, small and medium sized enterprise (MSMEs) with limited or no access to formal banking services and
(b) The Borrower is desirous of borrowing money from the Lender under the terms and conditions outlined below.
NOW IT IS AGREED AS FOLLOWS:
1.LOAN
1.The Lender hereby advances, and the Borrower hereby acknowledges receipt of the principal amount of GHS <Disbursed loan amount> (“the Facility”) for a duration of 1 month(s).
2.PRICING
2.1 The Borrower hereby agrees to repay the facility together with fees and interest thereon which comprises:
2.1.1 An upfront payment to the lender of 1.09% of the principal loan amount, composed of processing fee of 1.00% and insurance fee 0.09%. This shall be deductible from the disbursed amount.
2.1.2 A loan interest rate of 6.99% (flat) of the disbursed amount.
2.2 The annual percentage rate for the facility is 98.03%.
2.3 The lender has the right to adjust the interest rate stated herein (and communicate same to the Borrower) if developments of the underlying economic parameters necessitate doing so until final payment is made by the Borrower.
3.EARLY CLOSURE
3.1 Early repayment of this loan shall not attract any early closure fees.
4.REPAYMENT
4.1 The Borrower agrees to pay the full amount due the lender as one full amount on the date indicated as the Repayment due date, <Repayment Date>, by paying the amount into his/her Advans Ghana account number which received the disbursed loan amount either using the Mobibank, MyAdvans app or by paying in cash at a branch.
4.2 The Borrower hereby empowers the Lender to debit the said account with any outstanding amount due and owing.
4.3 The Lender reserves the right to apply the borrower’s funds, either from the Guarantee Deposit, investment amount, Savings Plan accounts, Term Deposits, Target Savings accounts or any amount in any account in the name of the borrower held by the Borrower together with any accrued interest, at any time during the default period, towards the payment and satisfaction (in full or partially) of any outstanding balance or indebtedness.
4.4 The Lender agrees that an official receipt shall be issued to the Borrower covering payments into account, provided that such payments are made during opening hours exclusively to the lender’s teller.
5. LOAN COLLATERAL
The parties hereby agree that the facility is secured in the following manner:
5.1 Collateral owned or issued by the Borrower in any outstanding/exiting loan.
5.2 Guarantee Deposit
5.3 Investment portfolio including but not limited to funds in Savings Plan accounts, Term Deposits, Target Savings accounts and any funds in any account in the borrower’s name held by the lender
5.4 The Borrower shall not transfer, assign, or part with any of the Collaterals without the prior written consent of the Lender during the pendency of the loan.
- 6. DEFAULT
6.1 The Facility shall at the option of the Lender be immediately due and payable upon the occurrence of one or more of the following (“event of default”)
6.1.1 Failure of the Borrower to make full payment of the repayment amount on the due date.
6.1.2 The Borrower engages in any activity or conducts himself in a manner that puts the repayment of the loan at risk
6.2 Without prejudice to any other right(s) conferred on the Lender, the Borrower agrees to pay:
6.2.1 A penalty fee of 0.6% per day on the repayment date due from the first day of default until the date full repayment amount is (are) paid.
6.3 Upon default by the Borrower:
6.3.1 the lender may where collateral provided by borrower for the digital loan is the same as the collateral provided under a pre-existing loan, exercise the same recovery rights and enforcement methods as they apply under the terms of the existing loan agreement.
6.3.2 the lender may where collateral is borrower’s investment portfolio or guarantee deposit, liquidate the said investment, and apply proceeds to settle outstanding loan obligations. The lender may also apply any funds in any account held by the lender in the name of the borrower.
6.3.3. If the collateral assigned herein are taken away, sold, removed or pledged to a third party without prior approval from the Lender, the Lender shall have the right to take any assets of similar nature that can be found in their stead upon obtaining Judgment and this shall extend to the proceeds of the collateral.
6.4 Upon default by the Borrower, the Lender shall be at liberty to publish the name of both the Borrower and his/her business (es) in newspapers, in the branches of the Lender and in the vicinity of the Borrower.
7.TERMS AND CONDITIONS
1.This Loan Agreement is subject to the Lender’s General Terms and Conditions.
8. CONSENT TO DISCLOSE INFORMATION
1.The Borrower hereby authorises the Lender to disclose or submit information on his/her credit transactions with the Lender to any institution licensed by the Bank of Ghana or obtain credit reports on him/her/it from such institution.
2.The Borrower further authorises the Lender to disclose or obtain from any institution licensed by the Bank of Ghana information on his/her/it personal data and information relating to any documents referred to herein, his/her/it assets and business affairs.
9. GOVERNING LAW
The laws of Ghana shall govern this Contract Agreement specifically the Borrowers and Lenders Act 2020 (Act 1052) and all disputes arising here under shall be subject to the jurisdiction of the Courts of Ghana.
ACCEPTEANCE OF TERMS
Dated: <Date of Acceptance>