FIRST MICROFINANCE CENTRE LTD LIMITED
P. O. Box E393, Blantyre Malawi
Tel +265 9999 78452/3
+265 9999 78452/53 or +265 9874 25433
customers@firstmicrofinancecentre.com
www.firstmicrofinancentre.com
Dear Sir;
CIVIL SERVANTS’ TERM LOAN
We refer to your recent application for a loan from First Microfinance Centre Ltd Limited.
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 Limited
Borrower :
Enter full borrower names
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) on
Operational Arrangements
Credit Reference :
No any 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 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 (as well after as before any judgment) 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 (as well as after as before any judgment)
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 condition 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 b binding myself for the Loan,
interest and default interest and all fees and charges applicable there under.
Signature
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