Mobi Loan Terms and Conditions

1. INTRODUCTION AND APPLICATION THE TERMS

1.1 These Terms and Conditions (“Terms”) become effective when you apply for, access or use 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 know, 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. APPLICATION FOR A FACILITY AND ACCEPTANCE OF A MOBILOAN FACILITY

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. The Borrower will be bound by their acceptance of the Facility.

 

3. CONDITIONS PRECEDENT TO FACILITY UTILISATION

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) whenever applicable, the Borrower obtaining and availing a Financial Card to the Bank;

d) all fees and interest, other than default interest, being paid upfront by the Borrower from the Facility amount;

e) no event of default has occurred and is continuing and/or would result from the advance, drawdown or availment of the Facility;

f) each of the representations and warranties being true and correct as of the date of drawdown before and after the drawdown;

g) the absence of any Material Adverse Change which would affect the ability of the Borrower to perform its obligations under this agreement.

 

4. REPRESENTATIONS AND WARRANTIES

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. THE BORROWER COVENANTS WITH THE BANK THAT:

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. PRICING

6.1 Interest

Interest shall be charged at the rate of 10.8% 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.

 

7. APPLICATION OF MONEY RECEIVED TO REPAY THE FACILITY

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. COST, EXPENSES AND FEES

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 over drawn or overdrawn beyond the permitted limit, interest and any other applicable charges shall be payable accordingly.

8.3 The Bank reserves the right to debit the Borrower’s account with any Insurance Premium for purposes of obtaining a valid Insurance for the Facility, as applicable.

8.4 The Bank reserves the right to review, amend, alter fees and commission at its sole discretion as appropriate and advise the Borrower accordingly.

 

9. PAYMENTS

All payments by the Borrower in respect of the Facility shall be made in full without set-off deductions of counterclaims and 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.

 

10. WAIVER NOT TO PREJUDICE BANK’S RIGHTS

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.

 

11. AVAILABILITY

The availability of these 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.

 

12. PAYMENT ON DEMAND

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.

 

13. CURRENCY CONVERSION

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. BANK’S RIGHT TO WITHDRAW MOBILOAN PRODUCT

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.

 

15. DISBURSEMENT

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. DISCLAIMERS AND WARRANTIES

16.1 The Bank is neither responsible for, nor liable to You, for any loss due to:

• interruption in the processing of the Facility or delay resulting from circumstances beyond its reasonable control. This includes power failure and network/technical faults, interruptions or delays in, communication with any telecommunication network, internet, Bank system or other system;


• any of your instructions not being sufficiently clear;


• any failure by you to provide correct information;


• any failure by you to keep your account details, mobile phone or any other credentials used to access your account with the Bank or a Mobiloan, in safe custody;


• any failure by you to report to the Bank immediately upon loss of your account credentials that may be used to fraudulently access your account with the Bank;


• any indirect, special or consequential losses;

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. PERMISSION TO PROCESS PERSONAL INFORMATION

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:

• sharing your personal information within the Bank for marketing purposes, the Bank may market its products, services and special offers to you;


• communicating third-party products, services and special offers to you. If you respond positively to the communication, the Bank may contact you;


• contacting you for research purposes. (The research companies will follow strict codes of conduct and treat customer information confidentially.

 

18. SANCTION SCREENING

18.1 It is understood that the Bank will undertake sanction screening of the Borrower and its related parties. By submitting information pertaining to the Borrower and its 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, Her 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.
9.2.3 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.

18.3 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

 

19. CREDIT INFORMATION SHARING

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.

 

20. ASSIGNMENT

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.

 

21. NOTICES

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.

 

22. ANTI BRIBERY AND CORRUPTION

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. LAW APPLICABLE

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.