Terms and Conditions

Loan Terms & Conditions

These Terms and Conditions apply to and regulate the provision of credit facilities advance by MKOBO Microfinance Bank Limited (”the Bank”). These standard Terms and Conditions together with our offer letter to you (“Offer Letter”) set out the terms governing this Loan Facility. It is important that you read the Offer Letter and these Terms and Conditions carefully and keep them for future reference.

Loan

I. The principal amount of the loan (“Principal Amount”) shall be as confirmed by The Bank to the Borrower after processing the application.
II. By signing this agreement, the Borrower agrees to take a Credit Life insurance as part of the agreement, which will be with the Bank’s chosen Insurer and the premium deducted from the Loan advance.
III. All Charges (including processing fee) applicable to the loan, which will be deducted, directly from the loan and the balance disbursed to the Borrower.

INTEREST

I. Interest on the loan shall be charged at the prevailing rate as communicated in the offer letter.
II. The Bank may, after notification to the customer, change the interest rate on facility. Any change in interest rate shall become applicable on the Borrower’s account and binding on the Borrower following a minimum of three (3) days written notice to the Borrower. Where the borrower, upon receipt of notification from the bank opts not to abide the change, the Borrower shall communicate this decision to the bank in writing and the loan granted shall become immediately due for repayment by the Borrower notwithstanding its tenor.

REPAYMENT

All payments due by the Borrower shall be deducted from the Borrower's salary, and remitted to the Bank.
In Particular:
I. Repayment shall be in accordance with the Repayment Schedule and to the designated account for repayment of the loan.
II. The Borrower shall be obligated to make repayments on each Repayment Date as detailed in the Repayment Schedule. The repayment shall be by a direct debit/direct deposit of the relevant amount from the Borrower's salary account and remittance by the Borrower's Bank ("Payment Bank") to the Bank in accordance with this agreement.
III. The Bank shall send an electronic message or SMS alert two (2) days before each Repayment Date and the Borrower hereby agrees that such notice shall be conclusively deemed received by the Borrower without need of any further notice.
IV. The Borrower hereby agrees that non-payment of the amount owed by any Repayment Date shall render the Borrower in default and entitle the Bank to immediately take steps to recover the outstanding loan amount in accordance with clause F below.
V. Where early repayment is initiated by the Borrower, the Borrower shall be liable to pay the outstanding principal and all monthly interest that would have accrued up to and including the repayment month, regardless of the date within the month the repayment is made. The Borrower may make any early payment of the total outstanding loan obligation due hereunder at any time by a direct deposit to the Bank, personal cheque, standing order or any electronic channel. Where the Borrower prepays on the loan, this will not have any effect on the principal. The outstanding principal is the unpaid loan obligation and the interest accrued as of the date of settlement.
VI. If (i) in the case of paragraph I above, the Bank has not received on a Repayment Date the total amount payable by the relevant date in accordance with the Repayment Schedule, or (ii) in the case of paragraphs II - IV, the Bank shall immediately make a demand for the outstanding amount to be paid by the Borrower within the following twenty-four (24) hours.
VII. Where more than forty-eight (48) hours have elapsed since the Repayment Date or delivery of the demand notice as indicated in paragraph VI, and the Repayment Amount or any portion of it remains outstanding, MKOBO shall apply a 0.000333 default charge daily on any such unpaid amount for every day the same remains outstanding. The Borrower hereby grants the Bank a power of sale over all assets pledged, deposited/charged by him to secure the loan and such interest accrued therein due to his default and the Bank may exercise this power of sale over such assets with or without an order of court.
VIII. Where there has been a default by the Borrower, the Bank reserves the right to assign its right, title and interest under the agreement to an external collections agency who will take all steps, within the bounds of the law, to collect the outstanding loan amount.
IX. The Bank also reserves the right to commence legal proceedings against the defaulting Borrower and is under no obligation to inform the Borrower before such proceedings commence.
X. The Borrower shall reimburse the Bank for all costs and expenses (including legal cost) incurred by the Bank in connection with or incidental to the recovery of the loan. Interest on any amount which becomes due and payable shall be charged in accordance with these Terms and Conditions.
XI. The Borrower hereby affirms that his undertakings and powers granted to the Bank hereunder are irrevocable for as long as he persists in default of the terms of the loan granted by the Bank persists and those undertakings and powers are enforceable by the Bank or its lawful assign, against him.

USE OF CREDIT BUREAU

I. The Bank will approach a dedicated Credit Reference Agency for a credit report on the applicant prior to disbursement of the loan.
II. The Borrower authorizes the Bank to access any information available to it as provided by the Credit Agency.
III. The Borrower also agrees that their details and the loan disbursement approval will be registered with the Credit Agency.

INFORMATION FROM EMPLOYER

The Borrower hereby consents to the Bank requesting and the Employer providing relevant employee information to the Bank as itemized under the Employer's Confirmation Section of the application form and any other information that the Bank may require.

DEFAULT

Default in terms of this Agreement will occur if:
I. Repayment in full of the outstanding amount or interest is not made on or before any Repayment Date in accordance with the Repayment Schedule.
II. Any information, representation, warranty or assurance made or given by the Borrower in connection with the application for this loan or any information or documentation supplied by the Borrower, is later discovered to be misleading or materially incorrect; or
III. The Borrower in any way perpetrates or attempts to or is involved in any act of fraud or other criminal activity in respect of the Bank or the Loan or does or omits to do anything, which may prejudice the Bank's rights, terms of this Agreement or cause the Bank to suffer any loss or damage.
IV. Any other action by the Borrower or occurrence of an event categorized as a default or an event of default in the Offer Letter.
If a Default occurs as indicated above, all amounts outstanding under the loan facility shall immediately become due and payable to the Bank and the Bank shall be entitled to do the following:
I. If (i) in the case of paragraph I above, the Bank has not received on a Repayment Date the total amount payable by the relevant date in accordance with the Repayment Schedule, or (ii) in the case of paragraphs II - IV, the Bank shall immediately make a demand for the outstanding amount to be paid by the Borrower within the following twenty-four (24) hours.
II. Where more than forty-eight (48) hours have elapsed since the Repayment Date or delivery of the demand notice as indicated in paragraph VI, and the Repayment Amount or any portion of it remains outstanding, MKOBO shall apply a 0.000333 default charge daily on any such unpaid amount for everyday the same remains outstanding. The Borrower hereby grants the Bank a power of sale over all assets pledged, deposited/charged by him to secure the loan and such interest accrued therein due to his default and the Bank may exercise this power of sale over such assets with or without an order of court.
III. Where there has been a default by the Borrower, the Bank reserves the right to assign its right, title and interest under the agreement to an external collections agency who will take all steps, within the bounds of the law, to collect the outstanding loan amount.
IV. The Bank also reserves the right to commence legal proceedings against the defaulting Borrower and is under no obligation to inform the Borrower before such proceedings commence.
V. The Borrower shall reimburse the Bank for all costs and expenses (including legal cost) incurred by the Bank in connection with or incidental to the recovery of the loan. Interest on any amount, which becomes due and payable, shall be charged in accordance with these Terms and Conditions.
VI. The borrower hereby affirms that his undertakings and powers granted to the bank hereunder are irrevocable for as long as he persists in default of the terms of the loan granted by the bank persists and those undertakings and powers are enforceable by the bank or its lawful assign, against him

COMMUNICATION

The Borrower agrees that the Bank may communicate with them by sending notices, messages, alerts and statements in relation to this Agreement in the following manner:
I. To the most recent address the Bank holds for the Borrower on file.
II. By delivery to any email address provided during the application process.
III. By delivery of an SMS to any mobile telephone number the Borrower has provided to the Bank.
IV. By delivery to the office address the Bank holds for the Borrower on file.

MISCELLANEOUS

I. This Agreement and any disputes arising out of or in connection with the same shall be governed by the laws of the Federal Republic of Nigeria and shall be subject to the jurisdiction of the courts in Lagos, Nigeria.
II. If the Bank shall have reasonably determined that the introduction of, or a change in any applicable law or regulation or in the interpretation by any governmental or other regulatory authority charged with the administration or court of competent jurisdiction makes it apparent that it is unlawful, illegal or not feasible for the Bank or the Borrower to give effect to, fund, or maintain or perform their obligations as contemplated under this Agreement the Bank shall immediately give notice of such occurrence to the Borrower and the commitment hereunder shall immediately be cancelled or discharged and the Borrower shall on the next succeeding Repayment Date or such earlier dates as may be required repay to the Bank the amount outstanding together with accrued interest thereon and any amounts due to the Bank under this Agreement.
III. If the Bank does not strictly enforce its rights under this Agreement (including its right to insist on the repayment of all sums due on the Repayment Date) or grant the Borrower an indulgence, the Bank will not be prevented from insisting upon its strict rights at a later date.
IV. The Bank reserves the right to transfer or assign its rights and obligation under this Agreement (including its obligation to lend money to the Borrower or the amount owned under this Agreement) to another person.
V. The Bank may inform the Borrower of a transfer/assignment of its rights hereunder if such a transfer results in a change in the administration of this Agreement.
VI. All the terms and conditions stated in this loan application have been read and understood by me and I hereby accept and agree to be bound by the terms and conditions.
VII. I have read and understood the terms/conditions and policies guiding the grant of my application by the bank and I agree to be bound by the Loan Policy of MKOBO Microfinance Bank Limited and be responsible for paying the entire loan amount availed to me according to the payment terms and conditions, failing which appropriate action (legal or otherwise) may be initiated against me.
VIII. The bank owes and shall bear no responsibility towards me where I choose to act in a manner inconsistent with the terms and conditions of the loan granted.

I accept the Terms and Conditions

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MKOBOBANK is registered in Nigeria as MKOBO Microfinance Bank (No. RC1234231), 3rd floor, 13 Hughes Avenue, Alagomeji, Yaba, Lagos. You will find the growing MKOBO team working at the same location. We are authorised and regulated by Central Bank of Nigeria (CBN) under registration number 51188.By using this website, you understand that the services and products offered on this website (“Services and Products”) are for information purposes only. No persons gaining access to this website in any jurisdictions may treat any materials or information provided on this website as constituting an invitation to them to subscribe for the services, nor should they in any event use such Services, unless in the relevant jurisdiction, the Services could lawfully be made to them. Accordingly, nothing contained in this website shall constitute an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not lawful. It is the responsibility of any person to inform themselves and to observe all applicable laws and regulations of any relevant jurisdiction before they subscribe for the services. MKOBO shall have the final determination of eligibility to subscribe for any of the Services.For any enquiry or complaints regarding to Fraud, please contact our Fraud Help desk via email at frauddesk@mkobo.com.ngThe information contained in these pages is not intended to provide professional advice and should not be relied upon in that regard. Persons accessing these pages are advised to obtain appropriate professional advice when necessary at all times in their respective jurisdiction.