BOSS CREDIT LTD

LOAN TERMS AND CONDITIONS

Should your loan application be approved, Boss Credit Ltd (hereinafter referred to as “the Lender”) shall issue a Loan Confirmation Letter to the Borrower confirming the approved loan amount together with any applicable special terms and conditions. The following Terms and Conditions shall apply to the loan facility granted.

1. LOAN FACILITY

1.1 Grant of Facility

At the Borrower’s request and subject to approval by Boss Credit Ltd, the Lender agrees to advance the loan amount specified in the Loan Confirmation Letter under the terms set out herein.

1.2 Discretion to Approve

Approval of the loan facility (whether full or partial) is at the sole discretion of the Lender. The Lender reserves the right to decline any application without assigning reasons.

1.3 Repayment Mode

Repayment shall be made through any of the following approved channels:

• Post-dated cheques equivalent to the number of agreed monthly instalments;
• Check-off arrangement through the Borrower’s employer (where applicable);
• Direct bank deposit to the Lender’s designated bank account;
• M-PESA Paybill as communicated by the Lender.

Unless otherwise officially agreed in writing, the Lender shall proceed to bank issued post-dated cheques on their respective due dates.

1.4 Right to Early Repayment

The Borrower may repay the loan in full or in part before maturity. In such cases, interest shall be recalculated in accordance with the applicable reducing balance method.

1.5 Recall of Facility

If the Borrower fails to pay any instalment on the due date, the Lender reserves the right to demand immediate repayment of the entire outstanding balance without further notice.

2. REPAYMENT TERMS

2.1 Instalments

The loan shall be repaid in monthly instalments as per the issued loan schedule, due every thirty (30) days from the disbursement date.

2.2 Application of Payments

Payments received shall be applied in the following order:

1. Legal and recovery costs (if any);
2. Accrued interest and penalties;
3. Outstanding principal amount.

2.3 Employer Deduction

Where applicable, the Borrower authorizes the Lender to recover outstanding amounts directly from the Borrower’s employer, including unpaid wages or final dues.

2.4 Shortfall Recovery

If employer remittance is insufficient to clear the debt, the Borrower shall remain liable for the outstanding balance.

2.5 Death or Permanent Disability

In the event of the Borrower’s death or permanent disability (subject to verification), the outstanding loan balance may be waived in accordance with the Lender’s policy.

2.6 Cleared Funds

Payments made via cheque or electronic transfer shall be deemed received only upon clearance of funds.

3. INTEREST

3.1 Interest Rate

Interest shall be charged at the agreed rate as indicated in the Loan Confirmation Letter.

3.2 Calculation Method

Interest shall be calculated on a reducing balance basis in accordance with applicable International Financial Reporting Standards (IFRS).

3.3 Loan Origination Fees

Where loan origination fees are capitalized, such fees shall remain payable in full upon early settlement.

4. PENALTIES AND CHARGES

4.1 Late Payment Penalty

A penalty of 10% of the overdue instalment shall apply from the 7th day of default and continue until payment in full.

4.2 Dishonoured Cheques

A charge of KES 1,000 shall apply for each dishonoured cheque, in addition to applicable bank charges.

4.3 Variation of Interest

The Lender reserves the right to vary interest rates due to market conditions upon giving thirty (30) days’ written notice.

5. TAXES

All fees and charges are exclusive of applicable taxes. The Borrower shall be responsible for payment of any statutory taxes imposed under the Laws of Kenya. Any change in tax rates shall be borne by the Borrower.

6. COSTS AND EXPENSES

• Transaction charges (e.g., M-PESA, bank transfer fees) may be deducted at disbursement.
• Legal, recovery, and third-party collection costs arising from default shall be borne by the Borrower.

7. EVENTS OF DEFAULT

Default shall occur if:

• The Borrower fails to pay any instalment on its due date;
• A cheque is dishonoured or blocked;
• The Borrower breaches any term of this Agreement;
• The Borrower resigns or is terminated from employment before loan clearance;
• The Borrower becomes insolvent or subject to garnishee/attachment orders;
• Any representation made by the Borrower proves materially false;
• There is, in the Lender’s opinion, a material adverse change in the Borrower’s financial condition.

Upon default:

• The entire outstanding balance becomes immediately due and payable;
• Interest shall continue to accrue;
• The Lender may engage licensed debt recovery agents at the Borrower’s cost;
• The Lender may consolidate any existing facilities for recovery purposes.

8. STATEMENT OF ACCOUNT

The Borrower may request a statement of account at any time. Statements reflect the account position as at the date issued and may change due to ongoing charges or accruals.

9. DATA PROTECTION

Boss Credit Ltd processes personal data in compliance with the Data Protection Act, 2019 (Kenya).

By accepting this Agreement, the Borrower:

• Confirms that personal data provided is accurate and voluntarily given;
• Consents to processing of data for loan administration, regulatory compliance, credit referencing, and debt recovery;
• Consents to contact of next of kin for recovery purposes;
• Consents to receiving marketing communications (with the right to opt out at any time);
• Retains rights as a data subject under Kenyan law.

10. LOAN CANCELLATION

• Cancellation before disbursement attracts no fee.
• Cancellation after disbursement requires refund of the full disbursed amount plus applicable origination fees within 24 hours.
• Cancellation requests must be made in writing through the Lender’s official communication channels.

11. ASSIGNMENT

The Borrower may not assign rights or obligations under this Agreement without written consent of the Lender. The Lender may assign its rights to a third party upon notice to the Borrower.

12. DISPUTE RESOLUTION

Any dispute arising from this Agreement shall be subject to the exclusive jurisdiction of the Courts of the Republic of Kenya. Parties shall continue performing their obligations pending resolution of any dispute.

13. GOVERNING LAW

This Agreement shall be governed and construed in accordance with the Laws of Kenya.

14. AMENDMENTS

No amendment or modification shall be effective unless issued in writing by the Lender and communicated at least thirty (30) days prior to implementation where applicable.

15. FORCE MAJEURE / CHANGE IN LAW

If changes in law or regulatory requirements make performance unlawful or impracticable, the Lender may suspend or cancel the facility and demand repayment of outstanding amounts with accrued interest.

16. DESTRUCTION OF UNBANKED INSTRUMENTS

Upon full settlement of the loan and after giving thirty (30) days’ notice, the Lender may destroy any unbanked cheques or instruments not collected by the Borrower.

17. BINDING EFFECT

Upon acceptance, this Agreement constitutes a legally binding obligation enforceable in accordance with its terms.