First Mutual Microfinance may approve or decline any application for a credit facility at its absolute discretion. First Mutual Microfinance is not obliged to disclose any reasons for the decline or approval of an application.

PURPOSE

The facility shall not be used for any purpose except for that permitted. However, failure to comply shall not prejudice the rights of First Mutual Microfinance, which shall not be responsible for monitoring or ensuring the use or application of the credit facility.

INTEREST

Interest on all credit facilities will be charged on a monthly basis. The monthly repayment inclusive of interest will vary depending on amount and period of loan. I understand that First Mutual Microfinance will charge interest on the outstanding balance on my account calculated on the prevailing rate that interest will be debited at monthly intervals. First Mutual Microfinance has a right to change its interest rate applicable on the credit facility to reflect changes in the prevailing base rate, interest will be charged on all outstanding amounts owed by the applicant.

CHARGES, FEES AND PENALTY RECOVER

First Mutual Microfinance reserves the right to recover charges and fees payable. DISBURSEMENT – I understand and agree that the loan establishment fee will be deducted from my loan and the balance credited to my account.

DEFAULT CLAUSE

In the event of default in making anyone repayment on the due date the outstanding and principal amount of the loan and the accrued interest shall become immediately due and payable. A statement of demand signed by an authorised officer of First Mutual Microfinance shall be conclusive evidence that a sum is due and owing by you. In the event of default First Mutual Microfinance reserves the right to transfer the defaulting account to a Third Party Agency to recover outstanding debt and negative listing of the applicant with the credit bureau. PAYMENTS INCLUDING EARLY REPAYMENTS Early repayment of loan amounts is fully permitted. However, such payments are subject to the levy of any early repayment fees. The amount of such fees will be notified by First Mutual Microfinance from time to time, and is subject to change. (Any repayment shall be applied against and shall reduce or extinguish the loan amount).

INSURANCE

The applicant will be required to pay the insurance premium at the inception or renewal of facilities. In the event of a loan top up or early settlement, the borrower shall be refunded on a pro rata basis the unused insurance premium for the outstanding period of the loan. In addition, some of the products offered by First Mutual Microfinance will include an extra premium that will go towards a funeral cash plan that is payable to the loan holder’s family in case of death during the tenure of the loan.

VARIATIONS

First Mutual Microfinance will advise the applicant of any change in minimum lending rates, charges or fees by publication of a notice in a local or national newspaper or by a notice at its branches in Zimbabwe or by statement messaging. The applicant understands and agrees that First Mutual Microfinance is not obliged to obtain the applicant’s signature for receipt of such communication.

SET-OFF AND CONSOLIDATION RIGHTS

First Mutual Microfinance may at any time without notice combine all or any of the applicant’s accounts and liabilities with First Mutual Microfinance whether singly or jointly with any person or set off all or any monies standing to the credit of such account(s) including the applicant’s deposits with First Mutual Microfinance (whether matured or not) towards the satisfaction of the applicant’s liabilities to First Mutual Microfinance whether as principle or surety, actual or contingent, primary or collateral, singly or jointly with any other person and First Mutual Microfinance may affect any necessary currency conversion at the then prevailing exchange rate.

LETTER OF UNDERTAKING

I agree to submit an irrevocable letter of undertaking from my employers to pay my monthly emoluments direct to First Mutual Microfinance for my account during the term of the facility and that during the said period, all emoluments due from me in the event of my leaving the employment for any reason shall also be paid to First Mutual Microfinance.

NOTICES

The applicant agrees to accept service of all notices and processes at his/her postal or physical address and appoint these addresses as the deemed address of service. All notices sent to the applicant’s domicilium shall be regarded as having been received seven days after posting or at the time at which they are delivered if delivered by hand, facsimile, or e-mail.

SALARY DIVERSION

– For non-scheme applicants the loan is provided on the basis that the applicants’ salary will be deposited into agreed current account until the unsecured loan is fully paid. Unless the applicant advises First Mutual Microfinance to the contrary, First Mutual Microfinance is authorised, but not obliged, to act on the applicant’s financial instructions transmitted through a telex/ facsimile or email. The applicant releases First Mutual Microfinance from, indemnifies and holds First Mutual Microfinance harmless from and against all actions, suits, proceedings, costs, claims, demands, charges, expenses, losses, and liabilities however arising, in consequence of in any way related to: – First Mutual Microfinance having acted in good faith in accordance with the applicant’s written email instruction notwithstanding that such instruction(s) may have been initiated or transmitted in error or fraudulently altered, misunderstood of distorted in the lines of communication or transmission. – First Mutual Microfinance having refrained from acting in accordance with any written telex, facsimile or email instruction by reason of the failure of actual transmission thereof to First Mutual Microfinance or receipt by First Mutual Microfinance for whatever reason, whether connected with a fault, failure, or unreadiness of the sending or receiving machine. -The applicant’s failure to forward all original copies of facsimile instruction(s) to First Mutual Microfinance within 24 hours.

AUTHORITY TO FUTURE EMPLOYERS

The applicant authorizes present and future employer(s) to deduct loan repayments from the salary and remit funds to First Mutual Microfinance.

APPROPRIATION

All amounts received by First Mutual Microfinance will be first apportioned towards overdue interest, charges and interest. Any balance left thereafter will be appropriated lastly towards principal.

DISCLOSURE

The applicant agrees and authorises First Mutual Microfinance or the approved credit reference bureau to: a) Make inquiries from any First Mutual Microfinance, First Mutual Microfinance or approved credit reference bureau in Zimbabwe to confirm any information provided by the applicant: b) Seek information from any First Mutual Microfinance, financial institution or approved credit reference bureau when assessing the client at any time during the existence of the applicant’s account. c) Disclose to Finance Credit Bureau (FCB) approved credit reference bureau information relating to the applicant’s account maintained at First Mutual Microfinance.

INDEMNITY

The applicant agrees to fully indemnify First Mutual Microfinance against all costs and expenses (including legal fees) arising in any way in connection with the applicant’s accounts, these terms and conditions in enforcing these items and conditions or in recovering any amounts due to First Mutual Microfinance or incurred by First Mutual Microfinance in any legal proceedings of whatever nature.

STANDING INSTRUCTIONS

I consent that a standing instruction be set on my account to service the monthly repayment of my loan.

WAIVER

No forbearance, neglect or waiver by First Mutual Microfinance in the enforcement of any of these terms and conditions shall prejudice First Mutual Microfinance’s right thereafter to strictly enforce the same. No waiver by First Mutual Microfinance shall be effective unless it is in writing.

JURISDICTION

In the event of any dispute, I consent to the jurisdiction of the Magistrate’s Court, irrespective of the amount involved.