1.1 These Terms and Conditions (“Terms”) become effective when you apply for, or access the dfcu MobiLoan (hereinafter referred to as “MobiLoan” or “Facility”).You may only use the Facility in accordance with these Terms.
1.2 You must read, understand and comply with these Terms, as they form a binding agreement between you and dfcu bank (“the Bank”).
1.3 It is important to read and understand the Terms and Conditions each time before you apply for the MobiLoan.
1.4 Note that the Bank may update these Terms from time to time, the most up to date version of the Terms and Conditions will be available to you each time you apply for the MobiLoan.
2.1 Any MobiLoan applied for using your account credentials shall be deemed to have been initiated and authorised by you.
2.2 When you authorise a Facility or when deemed to have authorized a Facility, you will be assumed to have given authorization to the Bank to book the Facility and credit your account with the amount of the Facility for which you qualify.
2.3 You agree to electronically accept the Facility and applicable Terms and Conditions. You, the borrower, will be bound by your acceptance of the Facility.
Without prejudice to the discretion of the Bank to grant the MobiLoan, the availability of the Facility will be subject to the following conditions:
a) due diligence and vetting of the Borrower by the Bank;
b) the Borrower qualifying for the MobiLoan under the criteria set by the Bank and the Bank approving the MobiLoan;
c) all fees and interest, other than default interest, being paid upfront by the Borrower from the Facility amount;
d) no event of default has occurred and is continuing and/or would result from the advance, drawdown or availment of the Facility;
e) each of the representations and warranties being true and correct as of the date of drawdown before and after the drawdown(s);
f) the absence of any Material Adverse Change which would affect the ability of the Borrower to perform its obligations under this agreement.
The Borrower represents and warrants to the Bank that the execution of the Terms and Conditions or any other document that the Borrower may be required to execute in relation to the Facility and the performance of the terms arising thereunder are within the Borrower’s powers and or have been duly authorised by all necessary actions and do not and will not contravene any law or any contractual or other restriction binding upon you.
5.1 If the Borrower shall default in payment of the Facility the whole sum outstanding together with default interest thereon shall become immediately due and payable.
5.2. Any amount not repaid by its due date shall after the due date thereof attract the default interest as stated in clause 6.2.
6.1 Interest
Interest shall be charged at the rate of 10.8% for personal MobiLoan and 12% for SME MobiLoan per month; interest will be paid upfront at disbursement from the Facility amount.
6.2 Interest on Overdue amounts
Any amount not repaid by its due date shall after the due date thereof attract a default interest at a rate of 1% per day for the first fifteen (15) days following default.
6.3 Changes in Interest Rate
The Bank reserves the right to change the interest rate and the method of calculating interest at any time, in line with market conditions and or the risk rating of the Facility. The changes in interest rate may be notified to you via our website or may be published by the Bank in any national newspaper.
6.4 Tariff Guide
The services offered by the Bank are subject to the fees stated in the Bank’s Tariff guide that may be accessed at any of the Bank’s premises or the Bank’s website. The fees and rates applicable to the Facility may similarly be varied and notified to you via our website, published in the Bank’s Tariff Guide that may be accessed at any of the Bank’s branches or a notice published in a newspaper of wide circulation.
If any sum paid or recovered in respect of the Borrower’s liability is less than the amount then owing, the Bank may apply that sum to interest, fees, principal or any amount due in such proportions and order or in such manner as the Bank thinks fit.
8.1 The Borrower agrees that all costs and expenses whatsoever including legal and auctioneers costs connected with the recovery or attempted recovery of money owing under the Facility as well as the contesting of any involvement in any legal proceedings of whatsoever nature by the Bank in connection with any account(s) of the Borrower shall be payable by the Borrower on demand, on a full indemnity basis, together with interest from the date the costs and expenses are incurred to the date of full payment at such rate as the Bank may prescribe (both before and after judgement).
8.2 The Bank shall have the right at any time to debit the Borrower’s account with interest, commission, charges, fees, and all monies arising from the Facility as well as all amounts and sums of money mentioned in the preceding subparagraph as being payable by the Borrower. No such debiting shall be deemed to be a payment of the amount due (except to the extent of any amount in credit in the Borrower’s account(s) or a waiver of any event of default under any agreement relating to the facilities. If such debiting causes the Borrower account to be overdrawn or overdrawn beyond the permitted limit, interest and any other applicable charges shall be payable accordingly.
8.3 The Bank reserves the right to review, amend, alter fees and commission at its sole discretion as appropriate and advise the Borrower accordingly.
9.1 All payments by the Borrower in respect of the Facility shall be made in full without set-off deductions of counterclaims. Such payments shall be free of and without deduction for or on account of tax unless the Borrower is required by law in any jurisdiction to make any such payments subject to such withholdings or deductions. In which case the Borrower shall pay such additional amount to the Bank as may be necessary in order that the actual amount received after such withholding or deduction shall be equal to the amount that would have been received if such withholding or deduction were not required. The Borrower shall fully indemnify the Bank from any liability with respect to the delay or failure by the Borrower to pay any taxes or charges. Without prejudice to the foregoing, the Borrower shall complete such forms and documentation as may be required from time to time by the Bank for the purpose of conferring upon the Bank the benefit of any applicable tax treaties or provision under applicable law for any other purposes in connection therein.
9.2 In the event that the loan falls into arrears and remains unpaid beyond the agreed repayment date, the Bank reserves the right to recover the outstanding amount by offsetting funds available in any other personal accounts held by the customer with the Bank.
The Bank may as it deems fit refrain from or forbear to enforce any of the terms in this Agreement or waive such conditions of any breach of the Borrower or the same without prejudice to its right at any time afterwards to act strictly in accordance with the originally agreed terms in respect of the existing or subsequent breach.
The availability of this Facility is at all times subject to the compliance in such manner as the Bank thinks fit with any and all restrictions of the Central Bank of Uganda or any other applicable regulatory authority from time to time in force and all terms and conditions thereof remain subject to any directions of the Central Bank of Uganda as advised to the Bank from time to time.
In terms of normal Banking practice, the Facility or part thereof may be recalled by the Bank by written notice to that effect, payable either upon demand or within a period stated in the notice in which event the Facilities in question are cancelled and any liability to the Bank becomes payable either forthwith or on the date stated in the demand, as the case may be.
The Bank reserves the right to convert any amount held and due to the Borrower for purposes of obtaining an amount equivalent to the Borrower’s obligation under the Facility. The Bank’s applicable exchange rate for the day shall apply to the conversion. The shortfall and exchange risk associated with the conversion shall be borne by the Borrower.
14.1 The Bank reserves the right to withdraw the MobiLoan offering without prior notice to the Borrower.
14.2 The Facility will expire and terminate and will be payable upon expiry of the tenure. Typically, the tenure for the MobiLoan is not more than thirty (30) days. Notwithstanding the expiry of the Facility, these Terms and Conditions once accepted shall remain in full force and effect, until the Facility and applicable interest is repaid.
Notwithstanding any provision or any Agreement between the Bank and the Borrower, the Bank shall not be obliged to make any disbursement in the following circumstances;
a) during the existence of a default or an event of default;
b) Unless and until the conditions precedent to every disbursement have been fulfilled by the Borrower;
c) If the disbursement would cause the limit of the Facility to be exceeded.
16.1 The Bank is neither responsible for, nor liable to You, for any loss due to:
16.2 The Bank shall rightly assume that all applications for, acceptance and utilisation of the MobiLoan using your mobile phone number or credentials are done and are authorized by you. The Bank shall not be held liable for transactions carried out on the contrary.
17.1 By applying for, accepting or using the MobiLoan, the Borrower consents to the Bank collecting his/her/its personal information submitted to the Bank and where lawful and reasonable, collected from public sources, for credit related purposes, detection or investigation of fraud or other illegal activity, compliance with regulatory requirements, as well as the purposes set out in the subsequent sub-clauses.
17.2 You further consent to the Bank’s processing your personal information within the Bank and through third parties in and outside Uganda, to the extent necessary for us to provide you with our products and services, and to ask all parties that receive your personal Information to agree to our privacy policies.
17.3 If you give us personal information about or on behalf of another person, you undertake and hereby confirm that you would have obtained authorisation of the data subject for the Bank to collect and process their personal information in and outside the country where the products or services are provided.
17.4 As part of our services we would like to give you information about products and services offered by the Bank. As your personal information is confidential, we need your consent to share it for the purposes below, you consent will be deemed to have been given when you accept the MobiLoan terms and conditions. In event you are not agreeable to us sharing your personal information, please contact any of our branches and lodge your written objection for our further action. Consent given includes:
18.1 It is understood that the Bank will undertake sanction screening of the Borrower and their related parties. By submitting information pertaining to the Borrower and their related parties, the Borrower authorizes the Bank to undertake sanction screening, and where applicable confirms having procured necessary consent for the Bank to undertake sanction screening on the related parties.
18.2 The Borrower undertakes to immediately notify the Bank upon becoming the subject of sanctions investigations; the Bank maintains the right to terminate the relationship should the Borrower become the subject of Sanctions under a regulatory body duly authorised to issue such sanctions including; the government of Uganda, His Majesty’s Treasury of the United Kingdom (HMT), the Office of the Foreign Assets Control of the Department of Treasury of the United States of America (“OFAC”), the United Nations Security Council (“UNSC”), the European Union’s Common Foreign and Security Policy (EU) and the French Ministry of Economy, Finance and Industry.
18.3 You hereby indemnify the Bank against any actions, proceedings, claims and/or demands that may be brought against the Bank, as well as against losses, damages, costs and expenses which you may incur in connection with the seizure, blocking, withholding of any funds by any competent authority and any activity which directly or indirectly benefits any party against who sanctions have been established by any competent authority.
18.4 You undertake that; You will not use (or otherwise make available) the funds/facilities on this account (s) for the purposes of financing, directly or indirectly, the activities of any person which is Sanctioned or in a country which is subject to any Sanctions; You will not contribute or otherwise make available, directly or indirectly, the funds/ facilities on this account (s) to any other person or entity if such party uses or intends to use such funds/ facilities for the purpose of financing the activities of any person or entity which is subject to any Sanctions; You are not involved in any illegal or terrorist activities currently or in the foreseeable future the subject of any sanctions investigation and shall notify the Bank if You become the subject of a sanctions investigation
The Borrower expressly permits and authorises the Bank at its sole discretion to carry out credit checks on the Borrower or disclose the Borrower’s credit information to any authorised Credit Reference Bureau or member Financial Institutions, the Bank’s holding company and or associate/ subsidiaries, Government Agencies, External Auditors, Bank Lawyers, Bank Auctioneers, Bank Insurers and any other legal authorities. Such information may be used by other Banks or institutions for among others, assessing credit applications, debt tracing and fraud prevention as may be required by law or regulations. In this respect, the Borrower shall hold the Bank, all its officers, employees and agents indemnified from any action, proceedings or liability whatsoever relating to such disclosure.
The Bank may assign or transfer all or any part of its rights and benefits and obligations under this Agreement to any other person. Any such assignee or transferee shall have the same rights against the Borrower as if it had been a party to this Agreement as the Lender (to the extent of the rights assigned or transferred). It will not be necessary for the Borrower to take any action and or execute any documents to give effect to any such assignment or transfer other than is herein provided for.
Any notice, consent or communication permitted to be given or made under this Agreement shall be in writing and shall be deemed to have been duly given or made to You when delivered telephonically, via short message service (SMS) to your mobile phone number previously advised to the Bank, to Your last known place of business or sent by post/mail/email to Your last known address. This clause shall not apply to the service of the notice prescribed following a variation of the interest rate or fees applicable to this Facility.
The Parties to this Agreement shall comply with all applicable laws, statutes, regulations, policies and procedures relating to and governing antibribery and anti-corruption including but not limited to the Anti-Corruption Act 2009, and the Bank’s related policies and procedures. The Parties shall not engage in any activity, practice or conduct which would constitute an offence under the Act or policies. The Parties shall not, and shall procure that their employees, agents and sub- contractors do not offer, solicit or accept an inducement/advantage in connection with the service under this Agreement. Breach of this clause shall be deemed a material breach of this Agreement entitling the Bank to terminate the Agreement immediately.
23.1 The Parties will observe all applicable legal provisions on data protection and will collect, store and process personal data only if necessary, for the performance of this Agreement and to the extent legally permitted or where an express consent of the relevant affected person has been provided.
23.2 The Party acting as a data controller warrants that it complies with all applicable data protection and privacy laws in Uganda.
23.3 The Party acting as data processor, warrants to limit the processing of personal data to the extent legally permitted by the laws in Uganda.
23.4 If either Party submits Personal Information to the other Party on behalf of another person, then that Party confirms that it has authorization of the data owner to process their Personal Information.
24.1 The Bank and Borrower shall make every effort to resolve amicably by direct informal negotiation any disagreement or dispute arising between them.
24.2 If, after 14(fourteen) days from the commencement of such informal negotiations both Parties have been unable to resolve the dispute amicably, the matter shall be referred for Arbitration.
24.3 The dispute shall be referred to and finally resolved by arbitration administered by the International Centre for Arbitration and Mediation in Kampala (ICAMEK) in accordance with the Arbitration Rules of the International Center for Arbitration and Mediation in Kampala (ICAMEK) for the time being in force, which rules are deemed to be incorporated by reference in this clause. Arbitration shall be concluded within sixty (60) days from the date of appointment of the Arbitrator in accordance with the rules and the arbitral award shall be final and binding on both Parties to the Agreement except in situations of corruption, fraud and manifest bias.
24.4 The Arbitration shall be conducted in Kampala, Uganda and the language of the arbitration proceedings shall be English
If any part, term or provision of this Agreement not being of a fundamental nature should be held illegal or unenforceable, the validity or enforceability of the remainder of this Agreement shall not be affected.
This Agreement and all document governing the MobiLoan shall be construed and have effect in all respects and in accordance with the laws of the Republic of Uganda and subject to the jurisdiction of the courts of the Republic of Uganda. The Borrower, by accepting the MobiLoan irrevocably submits to the exclusive jurisdiction of the Courts of Uganda.
The following words and expressions (save, where the context requires otherwise) shall have the following meanings in these terms and conditions.
“Account” means an account held with the Bank, operated or transacted singly and/or jointly which includes but is not limited to current and savings deposit account(s), current overdraft facility account, term and call deposit accounts, loan accounts, advance accounts, contract accounts, product accounts, mobile and/or online accounts (as the case may be) and any other type of account that the Bank may provide from time to time which you are entitled to operate either maintained or held with the Bank.
“Anchor” means a supply chain partner in whose goods you trade and for which there is your purchase history shared with the Bank to determine your eligibility and credit limit. The Anchor’s goods are made available to the customers either through an appointed Distributor or purchased directly from the Anchor.
“Bank” means dfcu Bank Limited incorporated in Uganda as a limited liability company and includes its assignees, representatives, and successors in title.
“Bank Account” means a current or savings account held and operated with the Bank by a customer.
“Bank Rate” means the interest rates on loans or savings as may be set and communicated by the Bank from time to time.
“Borrower” means the customer who operates an account in dfcu Bank and has applied for the MoStock Loan product.
“Business Day” means, – means a day other than a Saturday or Sunday or official public holiday in Uganda, on which banks are generally open for business in Uganda and shall otherwise be termed as ‘Banking day’ herein.
“Contact Centre” means the point of contact for the Bank whose details shall be communicated by the Bank from time to time through any of its communication channels.
“Credit limit” means the maximum amount that the Bank can lend to the Borrower for the purchase of goods from the Distributor or the Anchor and it shall be calculated from time to time and made available.
“Credit Reference Bureau” means a company licensed by Bank of Uganda to collect and collate credit information on individuals and companies from various sources and disseminate that information in form of a credit report to authorized users.
“Distributor” means an authorized distributor solely responsible to an Anchor for trading in the Anchor’s goods within your territory.
“Draw-down cycle” means the period when you can purchase goods from the appointed Distributor or Anchor in the MoStock Loan scheme.
“Due date” is the day when the loan is due, and the Bank is authorized to debit your transactional account to repay the loan.
“Facility” or “Loan” means the money disbursed to the Borrower in exchange for future repayment of the loan value amount with interest in the form of the MoStock Loan.
“KYC” means know your customer and involves verifying the identity of the customer and assessing their suitability for the product.
“Loan Account” means the secondary account on which your credit limit is marked and from which debits are made to pay the Distributor and/or Anchor, and to which credits are made from your transactional account when they become due.
“Loan period” means the one, two or four weeks beginning on the drawdown cycle, depending on the specific program that you sign up to.
“Tariff” means the Bank’s tariff as provided in these terms and conditions and the Bank’s published Tariff guide.
“Transactional account” means the main account in the Bank on which your business transactions are carried out and includes the Customer’s current account.
The Borrower represents and warrants to the Bank that: –
In the event of:
All sums payable by the Borrower under this Loan Agreement shall be paid in full without any set-off or counterclaim and (save in so far as required by the law to the contrary) free and clear of and without any deduction or withholding whatsoever. If the Borrower is at any time required by law to make any deductions from any payment to the Bank, then the Borrower shall immediately pay to the Bank such additional amounts as will result in the Bank receiving the full amount it would have received had not such deduction or withholding been required and will simultaneously, provide the Bank with a certificate of deduction or withholding in respect of the amount deducted or withheld together with evidence satisfactory to the Bank that the amount so deducted or withheld has been paid over to the relevant authorities when and as due.
11.1 The Bank may at any time and without notice to the Borrower combine or consolidate all or any of the Borrower’ accounts with the Bank and set-off any matured obligation owed by the Borrower against any obligation (whether or not matured) owed by the Bank to the Borrower, regardless of the place of payment, booking branch or currency of either obligation. The Borrower hereby expressly authorizes the Bank to combine, consolidate or offset its accounts, the Bank will not require any additional authorization from the Borrower prior to such set-off, combination or consolidation.
11.2 If the obligations are in different currencies, the Bank may convert either obligation at its own rate of exchange offered at the time of conversion in its usual course of business or at any other market rate of exchange of its choosing for the for the purpose of the set-off. If either obligation is unliquidated or unascertained, the Bank may set-off in an amount estimated by it in good faith to be the amount of that obligation.
11.3 In exercising the right to conversion, the Bank shall not be liable for losses arising from the foreign exchange fluctuations.
The Borrower shall pay to the Bank, on demand, all costs, charges and expenses incurred towards recovery of the amounts due by Borrower,
The Borrower shall not cede, assign, delegate or transfer any of its rights under this Agreement without the Bank’s prior written consent, such consent to be granted in the sole discretion of the Bank save that the Bank may assign the Agreement to any dfcu affiliate on written notice to the Borrower.
In addition to these terms and conditions, you agree to be bound by and comply with the terms of such other agreements we may provide to you in connection with the product. You further agree to be bound by and comply with any and all applicable laws, rules and regulations in connection with your Loan Account.
If any provision of these terms and conditions is determined to be invalid or unenforceable by court of competent jurisdiction, the remaining provisions of these terms will not be affected thereby, and each of those provisions will be valid and enforceable to the fullest extent permitted by law.
Every notice, request or other communication shall:
This Agreement and the conditions set out herein shall be governed by and construed in all respects in accordance with the Laws of Uganda. Nothing in this Paragraph shall limit the right of the Bank to take proceedings against the Borrower in any other Court of competent jurisdiction, nor shall the taking of proceedings at one or more jurisdictions preclude the taking of proceedings in any other jurisdiction, whether concurrently or not.
BORROWER’S DECLARATION
By offering my consent electronically through the Bank’s digital platform as I apply for the MoStock Loan, I have read and/or had these terms and conditions explained to me independently. I fully understand and agree to be bound by them and by any variations which may be made by the Bank from time to time and updated on its Website www.dfcugroup.com.
Empowering Women In Business – dfcu Women in Business (WiB) is more than Banking. We partner with female entrepreneurs to unlock growth for their businesses.
PSFU GROW stands for Generating Growth Opportunities for Women Enterprises. The GROW Project is a Government of Uganda Project funded by the World Bank and jointly implemented by PSFU (GROW Project Team) and the Ministry of Gender, Labour and Social Development. dfcu Bank is Implementing a component of the Project – GROW Financing Facility (GFF) alongside 4 other commercial Banks.
dfcu is one of the 5 Partner Financial Institutions (PFIs). dfcu Bank is offering Loan Products at 10% to Women entrepreneurs across the country through its branches.
dfcu is offering the Baraka Loan Product (outside Kampala), the Business Growth Loan (BGL), the Agricultural Production Loan (APL), Contract Financing (LPO, contracts etc- working capital Loan), and Asset Financing.
Agriculture Production Loan
This facility is targeted at providing working capital for businesses, groups and or individuals engaged in agriculture production to facilitate the acquisition of input supplies, factor inputs, and meeting any other operational costs associated with production, and post-harvest handling.
Requirements
Features
Baraka Loan
This is a short-term facility targeting small and emerging businesses with growth potential but currently have challenges accessing credit due to a lack of collateral.
Requirements
Features
Business Growth Loan
This is a facility targeted at providing short-term working capital funding for businesses or funds for expansion, working capital and financing core working assets in the business.
Requirements
Features
Asset Financing
This is a lending offering where a client is financed to acquire an income-generating asset which doubles as collateral. The purchased asset is registered in the name of the borrower. The bank only places its interest on the asset through a chattel mortgage or registered debenture.
Access financing for asset acquisition such as Vehicles, specialized equipment, Agro machinery and equipment, Infrastructure development facilities etc.
Requirements
Features
Female bank Customers with registered businesses who meet the detailed eligibility criteria. However, none bank customer can open accounts and get supported qualify, including support to formalize their businesses.
Yes, the GROW Loans are available at all dfcu Bank Branches, you can reach out to the nearest to you.
Yes, the GROW Loans are available at all dfcu Bank Branches, you can reach out to the nearest to you.
The Maximum Loan tenure is 2 years.
A minimum of 4 million up to 200 Million Uganda Shillings.
For some Loan products, security will be required, your bank officer will further guide depending on the amount among other considerations.
Get in touch with any officer at your nearest branch, any of these will share with you the GROW District Liaison to support you in registering your business. You can also reach out to the dfcu Foundation (ADC) advisor to guide you on the formalisation process.
A joint Business can qualify as long as the woman in the business holds the majority stake/ shareholding.
Qualification for the loan is based on the ability of the customer to repay the loan. All Eligible customers need to have a sufficient cashflow/ debt service ratio.
To qualify for this loan, a customer needs to have banked with dfcu for a minimum of 6 months.
The GROW Project is set to run for 2 years with a possibility of extension depending on the performance of the bank on on-lending the funds to Women Enterprises.
The GROW Project is set to run for 2 years with a possibility of extension depending on the performance of the bank on on-lending the funds to Women Enterprises.
Buy-offs or Re-financing is not part of the scope of this Loan initiative and thus not allowed. Top-ups for clients who qualify (with ample cashflows) are permissible as long as the repayment doesn’t exceed the 2-year window of this Loan Initiative/ Project.
Start-ups that meet the eligibility criteria and have the cashflows to repay the loans can qualify for this loan.
The Loan is being extended at Zero Arrangement fees.
More Information & Details
For more details, please visit any of our branches countrywide.
Send an email to Womeninbusiness@dfcugroup.com
WhatsApp 0776 760760 or call 0800 222 000 toll-free.
Download Project Brochure
Download the dfcu Women In Business – GROW Project brochures.
Click here to download.
dfcu Whistleblowing Channels: Email address: dfcu@tip-offs.com; Whistleblowing Toll Free Number: 0800 100 255; Anonymous Tip-Offs Link
