Loan Agreement

Acknowledgment of Debt and Salary Deduction Authorization

I do acknowledge that I am truly and lawfully indebted to the Lender in respect of a loan or loans granted to me by the Lender. I hereby authorize my employer to deduct from my salary, or any other source of remuneration, by way of a deduction code or otherwise, on salary date each month, or any other date in respect of other remuneration, such sums as the Lender may from time to time notify my employer. This notification shall be either in writing or in such electronic or magnetic media as the Lender and my employer agree from time to time, in repayment of any and all loans granted by the Lender to me together with interest and fees as accrued thereon.

I acknowledge and agree that no deduction may be withheld or postponed for whatsoever reason.

I hereby authorize the Lender, its holding company, or any of their designated agents, to draw against my account with the above-mentioned bank (or any other bank or branch to which I may transfer my account) the amount necessary for payment of the monthly/quarterly/annual commitment due in respect of loan repayment or any future indebtedness I may incur with the Lender. All such withdrawals from my bank account by the Lender shall be treated as though they had been authorized/signed by me personally.

Should my account fall in arrears or any periodical installment be returned by my bank on the basis of insufficient funds in my account, then I hereby authorize the Lender to increase my monthly installment to recover the arrears within the contract period or to collect this amount in partial amounts which may be deducted from my account at any time.

I agree that the Lender shall be entitled to change the date that deductions are made, to coincide with my payment date, and I need not be notified of such. I understand that the withdrawals hereby authorized will be processed by computer through any electronic means, and I also understand that details of each withdrawal will be printed on my bank statement or on an accompanying voucher. I agree to pay any bank charges relating to this debit order instruction.

I agree to pay any and all bank charges that relate to this debit order, including, without derogating from the generality hereof, all lodgment, failure, and other costs that the Lender may incur. I understand that I shall not be entitled to any refund of amounts that you have withdrawn while the authority was in force if such amounts were legally owing to the Lender. Receipt of this instruction by you shall be regarded as receipt thereof by my bank (whichever it is or will be). I hereby authorize the Lender to use the debit order instruction as a stop order when so required.

I hereby confirm that I also understand that the Lender may apply set-off in this matter and any other current and future matter where I am indebted to the Lender, including debts ceded to the Lender. This set-off includes but is not limited to actions where certain monies in excess of the original amount of the debt have been collected by the Lender, but I am not in a position to claim a refund for such monies as I am still indebted to the Lender. Furthermore, I agree to let the Lender know when I change/move my account.

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SECTION B – Loan Agreement

Whereas:

1. The Borrower herein Mr./Ms. ……………………… has made a Loan application to the Lender.
2. The Lender has agreed to lend to the Borrower K……………… for a period of …….. months to be repaid in installments of K………………. on terms and conditions herein.

Now, therefore, these present witness that the parties agree to the following standard terms and conditions for the Loan advancement:

1. Definitions and Interpretations

1.1 In this Agreement, the following words shall have the meanings assigned to them hereunder:

1.1.1 The Borrower: The borrowing party.

1.1.2 The Capital: The sum of money lent and advanced by the Lender to the Borrower plus any other charges or fees payable by the Borrower as per the policy.

1.1.3 Employer: The current employer of the Borrower, or any subsequent employer of the Borrower.

1.1.4 The Lender: The lending party is CMTech Cash Advance.

1.1.5 Loan or The Loan: The sum of money lent and advanced to the Borrower by the Lender.

1.1.6 Schedule: The schedule detailing the sum of money lent and advanced by the Lender to the Borrower, the insurance premium, the typical number of installments by which the loan is repayable, the interest rate applicable to the loan, and shall include any schedule subsequently executed (or deemed executed) by the Borrower in respect of the sum of money lent and advanced or deemed advanced by the Lender after execution of this Agreement.

1.1.7 Outstanding Balance: The portion of the Loan, fees, interest, and other charges as raised from time to time by the Lender and which is owed by the Borrower to the Lender.

1.1.8 Early Settlement: The full payment of the outstanding amount in fewer installments than reflected in the Schedule.

1.1.9 Terminal Benefits: The accumulated leave pay, notice pay, severance package, and/or salary and pension due to an employee by an employer upon termination of employment.

1.2 Headings of clauses shall be deemed to have been included for the purpose of convenience only and shall not affect the interpretation of this Agreement.

1.3 Unless inconsistent with the context, words relating to any gender shall include the other gender, and words relating to the singular shall include the plural and vice versa.

SECTION B: Loan Agreement

2. Terms of Loan and Repayment

2.1 Loan Application

• The Borrower acknowledges that he/she has applied for a loan from the Lender in the amount reflected as “Capital” in the Schedule executed or deemed to have been executed by the Borrower.

2.2 Subsequent Loans

• The Borrower acknowledges that any subsequent loan applications will:
  • Be governed by the terms of this Agreement.
  • Be reflected in a further Schedule with a unique number, which shall be executed by the Borrower.

2.3 Indebtedness

• The Borrower acknowledges lawful indebtedness to the Lender for repayment of the Capital, interest, and fees, as reflected in the Schedule. The Capital will be disbursed at the Lender’s discretion via cash, cheque, or electronic transfer.

2.4 Employment Status

• The Borrower declares that he/she is gainfully employed and actively working on the date of signature of this Agreement. The Borrower confirms completion of at least 6 months of service or as deemed appropriate by the Lender.

2.5 Repayment Obligations

• The Borrower agrees to repay the full capital with interest and fees by instructing their employer or Pension Fund Administrators to deduct the “monthly instalment payable” from their salary or other remuneration as per the Schedule. Any delays may result in extra instalments to cover arrears.

2.6 Documentation and Authorizations

• The Borrower shall complete any additional documentation, including the “Salary Deduction Authorisation Form,” to formalize this instruction to the satisfaction of the Lender and Employer. The Borrower consents to be liable for any commission owing by the Lender to the Employer for facilitating payroll deductions.

2.7 Termination of Employment

• The Borrower must notify the Lender in writing immediately if their employment is terminated. The Lender may demand that the outstanding balance be deducted from the Borrower’s terminal benefits held by the Employer.

2.8 Irrevocability of Deductions

• The Borrower acknowledges that no salary deduction may be withheld or postponed for any reason. Deductions shall be made on the due date or any other specified date until the entire amount is repaid in full.

2.9 Instalment Deductions

• Instalments will be deducted by the Lender or its nominee. Interest will accrue at the rate reflected in the Schedule, or as otherwise notified by the Lender.

2.10 Authorization of Deductions

• The Borrower authorizes the Lender to make arrangements and sign documents to procure payment of instalments, including withdrawals from the Borrower’s bank account through electronic methods.

2.11 Bank Account Information

• The Borrower authorizes the Lender or its representative to obtain information regarding their insurance, investments, employee benefits, or bank account particulars from relevant institutions.

2.12 Debit Order Authority

• The Borrower authorizes the Lender to draw instalments from their bank account, as specified in the Schedule, including arrear payments, accrued interest, and fees. This authority is irrevocable during the term of the loan and remains in effect until all liabilities are repaid in full.

2.13 Changes to Bank Account

• The Borrower must notify the Lender immediately if their bank account details change and provide new details.

2.14 Additional Sums

• Any additional sums lent or re-advanced by the Lender shall be reflected in a further Schedule, forming part of this Agreement and subject to its terms and conditions.
• 2.15 Notwithstanding any purported allocation by the Borrower of any payments made by the Borrower, the Lender may, at its discretion, allocate such payments to capital, interest, costs, insurance premiums, or any other charges as the Lender in its discretion deems fit.
• 2.16 The Borrower acknowledges having read and understood that under no circumstance in the process of settling any of the loan instalments or repayments, will cash be paid to any member of staff of the Lender, and that in the event that cash is paid, it will be done so at the Borrower’s own risk should it turn out that the cash is not credited to the Borrower’s loan account.
• 2.17 The Borrower agrees that any additional payments made against the Borrower’s loan account, in addition to those deducted from the Borrower’s salary, shall be deposited at the following bank account only and that proof of such payment, in the form of the original bank deposit slip bearing the official bank stamp, will be provided to the Lender within 5 (five) working days of such deposits.
• Account Name: CMtech Cash Advance
• Account Number:
• Bank:
• Branch Name:
• 2.18 The Lump sum payments received on an account will be treated as advance payments unless the Borrower has specifically requested a settlement quotation and made payment in accordance with the provisions and notice period as per the settlement quotation.
• 2.19 The Borrower acknowledges that if any amount is not paid by the Borrower to the Lender on its due date, the full amount of capital, interest and all other amounts then outstanding shall become immediately due and payable by the Borrower to the Lender. The Lender shall be entitled to charge interest at the contractual rate on an overdue payment on the loan. The Borrower hereby authorises the Lender to apply the contractual interest rate on any overdue payment on the loan. Payments received by the Lender over and above the expected payments will be treated as advance payments and will be used to set off any future instalments that are due. Advance payments do not reduce the interest or fees charged.
• 2.20 The Borrower acknowledges that a certificate signed by or on behalf of the Lender (and it shall not be necessary for the Lender to prove the authority of the person signing such certificate) stating the amount of the Borrower’s indebtedness to the Lender (including, if applicable insurance premiums and other charges) and further stating that such amount is due, owing and payable, shall be prima facie proof of all matters contained in such certificate including the amount and validity of such indebtedness and the fact that any amounts contained therein are due, owing and payable by the Borrower and shall entitle the Lender to obtain summary judgment, default judgment or any other proceedings against the Borrower in any competent court and shall be valid as a liquid document for those purposes.
• 2.21 The Borrower acknowledges that in the event of any instalment, or other payment, not being made on its due date, the Lender shall be entitled (without prejudice to any other rights which the Lender may have) to either demand repayment of the loan (inclusive of capital, interest and other charges then outstanding) or to reschedule the loan repayments, in which event a new Schedule will be deemed to have been executed by the Borrower in favour of the Lender.
• 2.22 Without detracting from, and without prejudice to, the provisions of the preceding paragraph, the Borrower acknowledges that in the event of his/her loan repayments falling into arrears, the Lender shall be entitled (but not obliged) to cancel the existing loan and reschedule the loan repayments due by the Borrower, in which event:
• 2.22.1 The balance of the existing loan inclusive of capital, interest and any and all other amounts or charges then owed by the Borrower to the Lender (“the rescheduled capital”) will be calculated by the Lender;
• 2.22.2 The rescheduled capital will be deemed a further loan made by the Lender to the Borrower;
• 2.22.3 The rescheduled capital together with interest thereon, insurance premiums and other charges, will be repayable by the Borrower to the Lender by way of monthly instalments over a fixed period to be determined by the Lender;
• 2.22.4 A Schedule in accordance with the terms of this Agreement will be deemed to have been executed by the Borrower; and
• 2.22.5 The Borrower shall repay the rescheduled capital together with interest, insurance and all other charges in accordance with the provisions of the aforesaid Schedule and the terms hereof.
• 2.23 Any latitude, extension of time or indulgence which may be allowed by the Lender to the Borrower in respect of the Borrower’s obligations in terms of and arising from this Agreement shall not be deemed to be a waiver of, or in any way affect the Lender’s rights to require strict and punctual compliance by the Borrower with each and every term and provision of this Agreement, including the Schedule.
• 2.24 The Borrower acknowledges and agrees that in the event of the Lender, in its sole discretion, deeming it necessary or desirable to instruct its Advocates or other persons to perform legal or collection services to collect any amount owed by the Borrower to the Lender, the Borrower shall be liable for any and all legal costs or charges incurred by the Lender, including any collection commission paid or payable by the Lender, tracing charges or any other incidental costs or charges of whatsoever nature.
• 2.25 If in the view of the Lender, the Borrower has breached his obligations in terms of the loan payment arrangement, the Borrower authorises the lender to send his payment profile to various credit reference bureaus, and this information will be available to other credit grantors.
• 2.26 The Borrower waives any claims that the Borrower may have against the Lender in respect of the following disclosures and specifically authorises the Lender to:
• 2.26.1 Perform a credit search on the Borrower’s records with one or more of the registered Credit Bureaus when processing this application;
• 2.26.2 Monitor the Borrower’s payment behaviour by researching the Borrower’s records at one or more Credit Bureaus;
• 2.26.3 Use new information and data obtained from any Credit Bureau in respect of future credit applications;
• 2.26.4 Record the existence and details of the Borrower’s account with any Credit Bureau; and
• 2.26.5 Record and transmit details of the said account and/or how payments are conducted in meeting the obligations on the account.
• 2.27 Subject only to the provisions of the preceding paragraphs, no agreement to vary, amend, alter or cancel the terms and conditions hereof shall be binding upon either party unless reduced to writing and signed by the Borrower and a duly authorised representative of the Lender.
• 2.28 In the event of legal proceedings being commenced by the Lender against the Borrower under this Agreement, the Borrower hereby confirms that he/she will bear the onus of proving that:
• 2.28.1 monies claimed by the Lender were in fact never advanced to, or received by or on behalf of the Borrower; and
• 2.28.2 the amount claimed by the Lender has been incorrectly calculated.
• 2.29 The Lender shall, for the duration of this Agreement, at all times have the right to cede, exchange or otherwise deal with any of rights in terms of this Agreement, upon such terms and conditions as the Lender may deem fit. In such cases the third party will acquire the same rights against the Borrower as the Lender may have by virtue of this Agreement. The Borrower therefore understands and consents that his/her debt towards the Lender may be ceded to a third party, and hereby consents that the Lender may choose to dispose of its rights to this Agreement by any means whatsoever and that it may do so at its sole instance and discretion and that such a party may use his/her personal information for any subsequent purpose that is in line with any combination of the initial purposes for which the personal information was obtained. The Borrower consents to the above use of the above information for as long as it is required by the Lender/third party for the initial or subsequent purposes.
• 2.30 The Borrower declares that he/she has never been declared bankrupt and acknowledges that in the event:
• 2.30.1 of he/she committing an act of bankruptcy, of he/she being declared bankrupt;
• 2.30.2 of he/she committing any breach of his/her obligations under this Agreement;
• 2.30.3 of the Borrower’s employment with the employer being terminated for any reason whatsoever;
• 2.30.4 that he/she supplies the Lender with any information which is false, incorrect or misleading;
• 2.30.5 that he/she cancels or attempts to cancel the deduction authorisation referred to in the Agreement;
• 2.30.6 that the instruction to the employer to pay in terms of the deduction authorisation does not materialise for whatever reason or he/she fails to pay the total monthly instalment to the Lender on the due date;
• 2.30.7 that any order whether provisional or final be granted by a competent Court placing the Borrower under sequestration or any judgement by any competent court being entered against the Borrower and remaining unsatisfied for thirty days thereafter; and
• 2.30.8 that any attachment be made or interdict be granted or execution be levied against the Borrower; then the entire capital, interest and any other sums of money due by the Borrower to the Lender shall become immediately due and payable upon demand by the Lender.
• 2.31 The Borrower hereby chooses domicilium citandi et executandi at the address set out on the first page of this Agreement for all purposes relating to this Agreement and its implementation and hereby undertakes to notify the Lender immediately in writing of any change of address.
• 2.32 Any notice given in terms of this Agreement shall be deemed to have been duly given if sent by registered post or delivered by hand, faxed or emailed to the address set out on the first page hereof, or to such other address as the party to whom the notice is given may have notified in writing for this purpose. Proof of posting or delivery shall be deemed to be proof of service.
• 2.33 The Borrower acknowledges and agrees that he/she has read and fully understands the language and content of this Agreement and has had the opportunity to take legal advice on the effect of this Agreement before signing.
• 2.34 This Agreement may be scanned or imaged electronically, and the electronically scanned or imaged version shall be deemed to be a true and accurate reflection of the original agreement, and shall be deemed to be the authentic version of the Agreement.
• 2.35 The Borrower agrees that the Lender, may at any time during the currency of this Agreement, obtain information from the Borrower’s employer with regards to the Borrower’s employment status and salary information.
• 2.36 The Lender may set-off any amount due to the Lender by the Borrower against any amounts that the Lender may owe to the Borrower from any other loans or amounts.
• 2.37 Any process or legal notice required to be served on the Borrower in terms of this Agreement may be served at the Borrower’s chosen domicilium address.
• 2.38 Each paragraph and provision of this Agreement is to be regarded as separate and distinct from the others, and the invalidity, unenforceability or any other defect of any one or more of the provisions of this Agreement shall not affect the validity or enforceability of the remaining provisions of this Agreement.
• 2.39 No latitude, extension of time or indulgence granted by the Lender to the Borrower shall be deemed to be a waiver of, or in any way affect the Lender’s rights to require strict and punctual compliance by the Borrower with each and every term and provision of this Agreement, including the Schedule.
• 2.40 This Agreement shall be governed by and construed in accordance with the laws of Zambia.
• 2.41 The Borrower acknowledges that the information provided in the loan application is material to the loan terms and, if it is discovered that the information is incorrect or misleading, the Lender may be entitled to terminate the agreement and claim any damages.
• 2.42 The Borrower consents to receiving marketing materials and other updates via email/SMS from the Lender.
• 2.43 The Borrower acknowledges that the Lender may use personal information for loan administration, marketing, and other purposes.
• 2.44 This Agreement constitutes the entire agreement between the parties concerning its subject matter and supersedes all previous agreements and understandings between the parties.
• 2.45 The Borrower consents to the Lender entering into an insurance contract on the Borrower’s behalf as collateral for the loan.
• 2.46 In the event that the Borrower’s employer fails to deduct and remit the payments as required, the Borrower will remain responsible for direct payments to the Lender.