LOAN CONTRACT
LOAN AGREEMENT
Date of Agreement:
Parties:
Party A (Borrower):
• Legal Full Name:
• Address:
• Identity Card Number:
Party B (Lender):
• Legal Full Name:
WHEREAS Party A intends to borrow funds from Party B, and Party B agrees to provide the loan on the terms and conditions set forth in this Agreement.
For the purposes of this Agreement, the following terms shall have the meanings ascribed below:
• Loan Amount: The order amount provided by Party B to Party A pursuant to Clause 1.1, being KES.
• Loan Interest Commencement Date: The date on which Party B disburses the Loan Amount to Party A’s designated account.
• Loan Maturity Date: The date specified in Clause 1.2 by which Party A is required to fully repay the principal amount of the loan together with all related fees and interest.
• Service Fees: The loan processing fees charged by Party B in accordance with Clause 3.1.
• CBK (Central Bank of Kenya): Refers to the Central Bank of Kenya or its successor regulatory authority.
• Confidential Information: Means non-public information disclosed by either party during the performance of this Agreement, as defined in Clause 13.
Clause 1: Loan Amount and Term
Party A agrees to borrow a KES (the "Loan Amount") from Party B, and Party B agrees to provide the loan in accordance with the terms of this Agreement.
The loan term shall be months/days, commencing from the Loan Interest Commencement Date and ending on the Loan Maturity Date ().
Clause 2: Disbursement and Interest
• Party B shall, within 1 working days after the effectiveness of this Agreement, transfer the Loan Amount (after deducting the following fees) to Party A’s designated account :
￮ Service Fees (Clause 3.1);
￮ Prepaid initial loan interest;
￮ Applicable taxes and fees as required by Kenyan law.
• The Loan Interest Commencement Date shall be the date when the funds successfully arrive in the account, and interest shall begin to accrue from such date.
• Party B shall not be liable for delays in disbursement caused by technical errors, third-party issues, or regulatory delays.
• Base Rate: The initial interest rate shall be [orderRate]% per day (fixed/floating).
• Rate Adjustment: Party B may adjust the interest rate in accordance with CBK regulations, provided that Party A is given 7 days’ prior written notice. The adjusted rate shall be binding on Party A.
• Default Interest: In the event of a breach, Party A shall pay default interest on the outstanding amount at 5% per day, calculated from the date of breach until full repayment.
| FeeType | Amount (KES) |
|---|---|
| ManagementFeeAmount | |
| InterestFeeAmount | |
| HandlingFeeAmount | |
| InsuranceFeeAmount | |
| AssessmentFeeAmount | |
| ConvenienceFeeAmount | |
| OtherFeeAmount | 25 |
Party A authorizes Party B to deduct all fees and taxes from the Loan Amount prior to disbursement. Unpaid fees shall be deemed principal obligations under this Agreement and shall accrue interest at the Default Interest Rate specified in Clause 2.2 until fully paid.
Party A shall fully repay the principal amount of the loan, accrued interest, and all fees to Party B on or before the Loan Maturity Date. Repayments shall be made to Party B’s designated account: .
• Active Repayment: Party A may repay via the application, mobile wallet, or bank transfer.
• Automatic Repayment: Party A must deposit sufficient funds into the repayment account before the repayment date, and Party B or its agent may automatically deduct the funds.
• No Extension: The Loan Maturity Date shall not be extended due to weekends or public holidays.
• Party A may prepay the remaining loan principal in full upon written consent from Party B.
• No Refund of Fees: Already charged service fees, taxes, and accrued interest shall not be refunded.
Clause 6: Assignment of Rights
Party A acknowledges that Party B has the right to assign all or part of its rights under this Agreement to a third party at any time, or to repurchase assigned rights.
• When assigning rights, Party B shall notify Party A in writing (e.g., by letter, email, or APP message).
• Regardless of whether Party A receives the notice, it shall continue to perform its repayment obligations under this Agreement.
Upon assignment, the assignee shall automatically assume all rights and obligations under this Agreement, including interest, fees, and liquidated damages.
Clause 7: Information Inquiry and Disclosure
7.1 Credit Information Sharing
Party A authorizes Party B to upload its credit information to third-party credit institutions (such as the Credit Information Bureau of Kenya) and allows Party B to legally inquire into its credit records.
Party B may use Party A’s information for legitimate business purposes, including sharing with partner institutions involved in loan processing.
7.3 Use of Data in Case of Default
In the event of Party A’s default, Party B has the right to use the data provided by Party A during the loan application process (e.g., mobile app and network data) to recover the debt.
Clause 8: Default and Remedies
The following shall constitute defaults:
In the event of a default, Party B may take the following measures:
If Party A’s personal information (e.g., name, address, contact details) changes, Party A must notify Party B in writing within 5 working days.
9.2 Liability for Failure to Notify
Party A shall bear all costs arising from investigations, litigation, etc., caused by its failure to timely notify changes in information.
Clause 10: Representations and Warranties
Party A warrants that it has full civil capacity and legal authority to enter into this Agreement and is capable of repaying the loan.
Party A warrants that all information provided to Party B is true, accurate, and complete. Party A shall indemnify Party B for any losses caused by inaccurate information.
Party A undertakes that the loan funds will not be used for illegal activities, securities trading, real estate speculation, gambling, or other prohibited purposes.
11.1 Definition of Confidential Information
Confidential Information includes non-public data disclosed during the performance of this Agreement, excluding information that is already public or required to be disclosed by law.
Confidential Information may be disclosed in the following circumstances:
11.3 Continuity of Obligations
The confidentiality obligations shall survive the termination or expiration of this Agreement.
Party A shall provide accurate contact information (address, phone number, email, emergency contact, etc.) upon signing this Agreement.
Notices may be delivered by personal delivery, mail, email, SMS, APP message, or platform announcement, with the following effective dates:
• Electronic messages: Effective on the date of sending;
• Registered postal mail: Effective 5 working days after mailing (as evidenced by postmark);
• Platform announcement: Effective on the date of publication.
Either party changing its address must notify the other party in writing within 3 days; failure to notify shall render the original address as the valid service address.
Clause 13: Governing Law and Dispute Resolution
This Agreement shall be governed by and construed in accordance with the laws of Kenya.
Disputes shall first be resolved through friendly negotiation; if negotiation fails, either party may bring a lawsuit before the competent courts of Kenya (with jurisdiction based on Party B’s principal place of business).
14.1 Effectiveness of Electronic Contract
This Agreement is executed in electronic form, and Party A’s acceptance of the Agreement via digital signature, click confirmation, or other means shall have legal effect.
If any provision is held to be invalid, the validity and enforceability of the other provisions shall not be affected.
Any amendment to this Agreement must be confirmed in writing by both parties.
This Agreement is executed by both parties as of the date first written above, for the purpose of demonstrating their commitment.
Party A (Borrower):
Date:
Party B (Lender):
Date: