FIRST MICROFINANCE CENTRE LTD
P. O. Box E393, Blantyre Malawi
Tel +265 9999 78452/3
+265 9999 78452/53 or +265 9874 25433
customers@firstmicrofinancecentre.com
www.firstfinancentre.com
Dear Sir;
CIVIL SERVANTS’ TERM LOAN
We refer to your recent application for a loan from
First Microfinance Centre Ltd. We are pleased to
confirm that we are prepared to offer you a loan
facility on the terms and conditions outlined below.
Lender:
First Microfinance Centre Ltd
Borrower:
Loan Amount:
Up to a maximum amount of MK
(in words)
Hereinafter known as “Loan” or “Loan Facility”.
This loan shall be available for draw down immediately
the agreement is signed.
Purpose:
The Loan Facility shall be available for the purposes
as defined by the borrower.
Employer Guarantee:
The facility shall be recovered fully through Payment
Solutions Malawi system and Malawi Government Payroll
deductions.
Employer Undertaking:
The Malawi Government shall deduct and remit the
monthly installments as they fall due till the loan is
paid off or otherwise as advised by the lender.
Interest Rate:
Interest at the rate of 5.75% per month shall be
charged on all amounts drawn under this Facility.
Interest is charged on reducing balance basis.
Arrangement Fee:
Processing Fees are charged on this facility at rates
as determined and fixed by the Lender currently at 0%
of the amount approved.
Costs and Charges & Expenses:
All costs, charges and expenses of whatsoever nature
(including stamp duties, title searches, legal and
valuation fees etc.) incurred in connection with this
Loan Facility are payable by you. If paid by the Lender,
these shall be debited to your Loan Account and shall
become payable on the same basis as the Loan and shall
bear interest on the same as the Loan.
Loan Maturity Date:
This loan shall mature and become due and payable in
full including interest and all other dues payable
hereunder.
Operational Arrangements
Credit Reference:
No other operational arrangements except as defined
herein exist on this facility.
It is a condition of this Loan that your name shall be
confirmed with the licensed credit reference bureaus
prior to the approval of this loan and your details
including performance of this loan as required by law.
Pre-conditions:
The drawdowns under this Loan Facility shall be
available only after the deduction is established on
Government payroll system and such deduction shall
remain in force till the loan is fully recovered and
such other conditions are satisfied to the requirements
of the Lender.
Collateral:
Clean.
Events of Default
The occurrence of anyone of the following events shall
act as an event of default under this Loan Facility.
If an event of default takes place the Lender shall
become entitled to demand immediate repayment of the
loan as well as all interest, charges, fees and all
other sums due under this Facility.
-
If any of the assets pledged as security are altered
in any material way without obtaining prior written
approval from the Lender.
-
If any of the representations made by the Borrower
to obtain this Loan Facility are proved to be
incorrect in any material manner.
-
If Borrower is in breach of any of the conditions
mentioned in this offer letter.
-
If the Borrower defaults on any of his loans from
any other lenders.
-
If the Borrower is convicted of any crime by any
court and part of the punishment is by imprisonment.
-
If the Government of Malawi revokes its contract
with Payment Solutions Malawi Ltd.
-
If Payment Solutions Malawi revokes its contract
with the Lender.
-
If Payment Solutions Malawi goes into sequestration.
Compensation for Late Payment:
If an event of default takes place or you fail to fully
repay the loan or any installment on or before its due
date, the loan or installment shall continue to bear
interest at the same rate specified in this letter for
as long as the loan or installment shall remain
outstanding.
In addition to the above-mentioned interest, you shall
be charged further interest by way of default interest
at the rate of 5% and the default interest shall accrue
on a daily basis.
If you are agreeable to this Loan Facility on the terms
and conditions mentioned above, you are requested to
sign and return a copy of this letter to the Lender
within fifteen days of the date of this letter after
which this offer shall stand cancelled and withdrawn.
Yours sincerely
______________________________________
______________________________________
FMC Authorized Signatory
FMC Authorized Signatory
ACCEPTANCE
I,
resident of
hereby confirm my acceptance of the Loan Facility on
the terms and conditions outlined in this offer letter.
I confirm that I fully understand and agree that by
accepting this offer I shall be binding myself for the
Loan, interest and default interest and all fees and
charges applicable thereunder.
Signature
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