| Loan / Borrower | Product | Principal ↕ | Interest | Term | Collateral | Outstanding ↕ | Status | Applied ↕ | |
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🚗 Vehicle 🏞️ Land | — |
| # | Due Date | Principal | Interest | Total Due | Penalty | Paid | Balance | Status |
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This Loan Agreement is made between:
This Agreement sets out the terms and conditions under which the Lender provides a financial loan to the Borrower, in accordance with the Money-Lenders Act (Cap 398), and in line with the Gracimor Loans Company Policy Manual.
The Borrower agrees to repay the loan strictly under the terms stated herein.
| Loan Item | Details |
|---|---|
| Loan Reference Number | |
| Principal Amount (ZMW) | |
| Loan Product / Type | |
| Interest Rate | |
| Total Amount Payable (ZMW) | |
| Loan Period | |
| Monthly Instalment (ZMW) | |
| Final Payment Due Date | |
| Processing Fee | |
| Collateral / Security |
3(a) Interest shall be simple interest only and shall not exceed forty-eight percent (48%) per annum in accordance with Section 15 of the Money-Lenders Act.
3(b) No compound interest shall be charged, and no hidden or negotiation fees shall apply other than lawful processing fees expressly disclosed to the Borrower.
3(c) Interest Allocation and Instalment Breakdown
The total interest payable shall be equally apportioned over the loan period and paid in monthly instalments.
Gracimor Loans Interest Structure (Money-Lenders Act, Cap 398): Simple interest rates for short- to medium-term facilities apply as per the approved licence.
The Borrower shall repay the loan strictly in accordance with the following instalment structure:
| # | Due Date | Principal (ZMW) | Interest (ZMW) | Total Due (ZMW) | Balance (ZMW) |
|---|---|---|---|---|---|
| TOTAL REPAYABLE | |||||
- Monthly interest payments are mandatory and shall be paid in full on or before their respective due dates.
- The final instalment shall constitute full and final settlement of the loan and must include both the final interest instalment and the full outstanding principal.
- No instalment shall be deferred, skipped, combined, or reallocated without the prior written consent of the Lender.
- Failure to pay any instalment in full and on time shall constitute a default under this Agreement.
- The Borrower agrees to repay the loan amount, including interest, on or before the agreed final due date.
- Instalments may be made monthly as agreed; full settlement shall occur within the loan period.
- Payments shall be made by bank transfer, mobile money, or any other approved method to the Lender's official account.
- Each payment shall be receipted and recorded in the Borrower's loan file.
- The Borrower hereby pledges the collateral described in Clause 2 as security for the loan.
- The Borrower warrants that they are the lawful owners of the said property and that it is free from encumbrances, liens, or disputes.
- In the case of movable collateral, the Borrower hereby authorises Gracimor Loans to take possession and keep such collateral safely stored under the Company's protection for the duration of the loan period. The collateral shall remain the property of the Borrower but shall be held in secure custody by Gracimor Loans purely as security until the loan is fully repaid. Gracimor Loans shall ensure that all stored collateral is kept in a secure, well-maintained environment and shall not use, lease, or dispose of the property unless lawful recovery proceedings become necessary in accordance with the Money-Lenders Act and the Company's Collateral Seizure Policy.
- The Borrower shall not sell, transfer, damage, or encumber the collateral until the loan is fully repaid.
By signing this Agreement, the Borrower confirms that:
- All information provided is true, complete, and accurate.
- The loan will be used for legitimate personal or business purposes.
- They have full legal capacity to enter this Agreement.
- They understand the interest rate, repayment terms, and penalties for default.
- They have read and understood the Gracimor Loans policies incorporated by reference in this Agreement.
7.1 Definition of Default
The Borrower is deemed in default if:
- Any instalment or repayment remains unpaid for more than seven (7) days after its due date; or
- The Borrower breaches any term of this Agreement or provides false information; or
- The Borrower becomes insolvent, absconds, or misuses the loan funds.
7.2 Consequences of Default
Upon default:
- The Borrower shall be charged simple interest on the overdue balance at the same contractual rate.
- The Lender may issue a Written Notice of Default followed by a Final Demand Notice granting fourteen (14) additional days to make payment.
- Failure to comply shall empower the Lender to commence lawful recovery proceedings, including collateral seizure in line with the Company's Collateral Seizure and Realization Policy.
- The Borrower shall bear all reasonable recovery, valuation, storage, and legal costs incurred.
7.3 Collateral Seizure
In the event of continued non-payment after proper notices, the Lender may lawfully seize and sell the pledged collateral. The process shall follow the timelines and safeguards established in the Collateral Seizure Policy, including:
- Thirty (30) days default period.
- Written notice of intention to realize collateral with a fourteen (14) day grace period.
- Peaceful seizure witnessed by a third party.
- Professional valuation and fair sale.
- Refund of surplus proceeds (if any) within seven (7) days.
7.4 Limitation Period
Legal recovery proceedings must commence within twelve (12) months of the cause of action, in accordance with Section 18 of the Money-Lenders Act.
Before the sale of any seized collateral, the Borrower shall have the right to redeem the asset by paying the full outstanding amount, including reasonable recovery costs, before the date of sale. Upon payment, the collateral shall be immediately released.
The Borrower may at any time settle the loan earlier than the final due date. Interest shall only be charged for the period the loan remained outstanding. No early settlement penalties shall apply.
- The Lender shall maintain a detailed record of this loan, including copies of all correspondence, notices, payments, and collateral documentation, for a minimum of seven (7) years.
- The Borrower may request a written statement of account at any time, in accordance with Section 11 of the Money-Lenders Act.
All personal and financial information provided by the Borrower shall remain confidential and shall be used solely for loan administration and recovery purposes. Disclosure shall occur only under lawful authority, court order, or regulatory requirement.
This Agreement is governed by the Money-Lenders Act (Cap 398) and other applicable laws of the Republic of Zambia. Any dispute arising hereunder shall be resolved by a competent court of jurisdiction within the Republic of Zambia.
All notices, demands, or communications under this Agreement shall be made in writing and delivered personally, by email, or by registered post to the last known address of the Borrower or Lender. Proof of delivery shall constitute valid service.
- This Agreement constitutes the entire understanding between the parties.
- Any amendment shall be in writing and signed by both parties.
- If any provision is declared invalid, the remaining terms shall remain enforceable.
- The Borrower acknowledges having read and understood the entire document before signing.
Signed at: Lusaka, Zambia Date:
2. Manager / CEO reviews and approves or rejects
3. On approval, funds are disbursed and the repayment schedule is generated
4. Automated reminders will be sent to the borrower 7, 3, and 1 day(s) before each due date