LoanFill

THE REPUBLIC OF UGANDA

LOAN AGREEMENT

This LOAN AGREEMENT is made this 1 day of January 2024 between PESASAVE TECHNOLOGIES CO. LTD (hereinafter referred to as “the Lender”) on the one part and Mr _________________ of _________________ (hereinafter referred to as “the Borrower”) on the other hand.

NOW THIS AGREEMENT WITNESSETH

1. The lender hereby lends to the borrower the principal sum of UGX 1,000,000 (hereinafter referred to as the loan amount and receipt of which is hereby acknowledged by the Borrower) to be payable to the lender as principal and interest there on at the rate of 5% per month in 12 installment(s) in accordance with the repayment schedule attached here to.
2. The Borrower hereby undertakes to establish a standing order with his/her bank in favor of the Lender to facilitate automatic monthly loan repayments on the dates they fall due. Provided that if the Borrower makes a direct payment equivalent to the due amount before the scheduled standing order date and the Lender acknowledges receipt of such payment, the corresponding standing order transaction may be deemed settled and no further deduction shall be made for that installment.
3. The Borrower hereby authorizes the Lender to rely on the standing order instructions issued to the Borrower's bank for the timely repayment of the loan. The Borrower warrants that there will be sufficient funds in his/her bank account on each due date to honor the standing order. In the event that any installment fails due to insufficient funds or cancellation of the standing order without the Lender’s consent, the Borrower shall remain fully liable for the missed payments and any resulting penalties or recovery actions.
4. Without prejudice to the provisions above, it is hereby agreed between both parties that in the event of the borrower failing to pay back as per the schedule hereinafter agreed, the borrower shall be liable to pay a penalty fee of 2.8 % per day on the outstanding loan principal amount from the date of default to payment in full together with any expenses incurred by the lender during the recovery process.
5. The borrower shall be in default and the entire outstanding loan amount and interest shall become immediately due and payable, if:
   • the borrower fails to pay back any installment (be it principal or interest or lender incentive) as and when it falls due, or
   • the borrower uses the loan amount (or any part thereof) for a purpose other than the one that is stated in the his/her loan application, or
   • it transpires that the documents and representations of the borrower are false or misleading, or
   • the borrower becomes unemployed or insolvent or declares his/her insolvency in accordance with the applicable legal acts.
6. In the event of default as set out in clause 5 above, the Lender shall be at liberty to pursue recovery of the outstanding loan amount, interest, penalties, and any associated costs through salary deductions, bank standing order enforcement, or any other lawful means available. Without prejudice to the above, the Lender may also seek redress through courts of law if necessary.

I, the above named borrower, declare that I have read and understood the terms and conditions of this agreement and I hereby acknowledge receipt of a copy of the agreement.

The parties have duly executed this Loan Agreement on the date first above written.

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