Terms and Conditions

Loan Terms and Conditions

1. Loan Overview

Loan Term: Borrowers can apply for loan durations of up to 24 months, depending on their eligibility, financial background, and repayment capability. This term is subject to the approval of the loan underwriter or loan assessment team.

Monthly Interest Rate: The standard monthly interest rate applicable to loans issued under this agreement is 0.5%. This rate may be subject to adjustment in the event of changes in federal or global interest benchmarks, provided sufficient notice is given to the borrower. Interest is calculated on the reducing balance method.

Payment Due: Loan payments are due on the 10th of each month, beginning the month after the loan is disbursed. It is the responsibility of the borrower to ensure that funds are available for collection on or before this date.

Currency: All financial transactions including loan disbursements, repayments, fees, penalties, and deposits must be conducted in U.S. Dollars (USD). Any currency conversion fees incurred by the borrower shall be borne solely by the borrower.

Payment Methods: Borrowers may select from the following payment options for monthly installments and fees:

* Option A: Automatic deduction by the system on the due date from the borrower’s designated account or wallet.
* Option B: Transfer via any recognized electronic banking system, including online banking, mobile banking, and digital wallets.
* Option C: Direct bank transaction through NEFT or other approved wire transfer methods.

2. Deposit & Verification

Before a loan is disbursed, the borrower must deposit an amount equivalent to 5% of the approved loan amount. This security deposit confirms the borrower’s ability and willingness to meet repayment obligations.

The verification process, once the deposit is received, typically takes 10 to 15 minutes, during which the borrower’s information and eligibility are cross-checked with internal records and compliance standards.

Upon successful verification, the 5% deposit will be refunded to the borrower along with the sanctioned loan amount. In cases where the lender fails to return the deposit post-verification, the lender is legally obligated to compensate the borrower at a rate equivalent to three times the original deposit amount. This condition is binding and enforceable by law.

3. Repayment Terms

Loan repayments must be made in monthly installments as agreed upon during the approval stage. Repayments must be made on or before the 10th of each month.

Late Fee: Failure to pay on time will result in a late fee equivalent to 5% of the due installment, not exceeding \$100 per month. This late fee is added to the total due amount and will incur further interest if not paid.

Prepayment: Borrowers have the option to pay off the entire loan balance at any time before the end of the loan term. In such a case, interest will be recalculated using the Rule of 78, and any unearned interest will be refunded.

4. Accountability & Co-Borrowers

Each borrower who signs this agreement, either individually or jointly with another, is fully responsible for the repayment of the loan amount, including all principal, interest, fees, and penalties. All co-borrowers share equal liability under this agreement.

If the borrower provides incorrect bank or identity details, an additional deposit of 30% of the loan amount (in USD) is required. This deposit is refundable once the corrected and verified information is submitted and approved.

5. Security

Collateral: This loan is unsecured and does not require traditional collateral such as property, vehicles, or fixed deposits. The only security required is the 5% advance deposit that serves as a measure of the borrower’s financial responsibility.

This no-collateral policy applies only if the borrower maintains honesty in documentation and repayment discipline. Any deviation from truth or breach of agreement terms may result in legal action and termination of the no-collateral provision.

6. Legal & Default Clauses

Illegal Activity: Borrowers found to be engaged in illegal financial activities, including but not limited to money laundering, gambling, funding terrorism, or financial fraud, are in direct violation of this agreement. The lender reserves the right to demand immediate repayment of the entire remaining loan balance and may pursue legal action under applicable laws.

Default: A borrower is considered to be in default if they fail to make any payment by the due date without prior notification or reasonable justification. In such cases, the lender has the right to:

* Demand immediate payment of the full remaining balance
* Report the default to credit bureaus
* Initiate legal proceedings for recovery
* Suspend or deny access to future lending products

Interest on Unpaid Balance: In the event of default, interest on the unpaid balance will be charged at an annual rate of 6%, compounded monthly, until the total due amount is settled.

7. Loan Cancellation

Borrowers who wish to cancel their loan application after approval but before disbursement must notify the lender in writing. A cancellation fee amounting to 10% of the loan amount will be charged.

Upon cancellation, the borrower is released from any future monthly repayment obligations, provided the cancellation fee is paid in full. No interest shall accrue after the cancellation is confirmed.

8. Collection & Legal Fees

In cases where the loan enters default and recovery requires legal intervention or third-party collection agents, the borrower agrees to bear an additional cost of 15% of the outstanding loan balance. This collection fee will be added to the total outstanding amount and is payable immediately upon collection notification.

The borrower also agrees to cover reasonable legal fees and court costs, if applicable, resulting from collection or dispute resolution.

9. Legal Validity

This agreement is a legally binding contract between the borrower and the lender. By signing or electronically accepting the terms, the borrower acknowledges full understanding of their obligations and consents to all stipulations described herein.

The contract remains enforceable until the loan is fully repaid or cancelled as per agreed terms. Amendments or modifications to this agreement must be made in writing and signed by both parties.

10. Governing Law

This agreement shall be governed by and construed in accordance with the laws and financial regulations of the jurisdiction in which the lender is registered and operates. Any disputes arising from this contract will be subject to the courts of competent jurisdiction within the same region.

11. Final Acknowledgement

By electronically signing or accepting these terms, the borrower agrees that:

* They have read and understood the agreement
* All personal and financial information provided is true and correct
* They accept the lender’s rights to enforce terms in case of breach

All transactions, including loan disbursement and repayments, will be carried out exclusively in U.S. Dollars (USD).

This agreement represents the full and complete understanding between the lender and borrower, superseding all prior verbal or written communications.