1.Interest rate, fees & total cost of borrowing1.1 The monthly interest rate is calculated by the Bank from the date of credit disbursement to the date of full repayment by the Borrower. The monthly interest payment is calculated on the declining outstanding principal.1.2 The Bank shall charge a loan arrangement fee of 4% deductible from the approved amount at disbursement. 2. Loan repayment2.1 The loan shall be paid according to the repayment dates as available via eTumba.2.2 The Borrower shall be responsible to pay their instalments as per the indicated repayment dates via eTumba or into the corresponding AB Bank current account. 3. Anticipated Early Repayment3.1 Anticipated early repayment of the loan has to be authorized in writing by the Bank. If approved, the anticipation comprises the payment of the outstanding principal amount and interest accrued until the day of the payment.3.2 In the event that the loan is secured by real estate, the Bank shall charge an administrative fee of 5% calculated on the outstanding balance of the loan as at the date of early closure of the loan. 4. Rights and obligations of the Borrower4.1 The Borrower must inform the Bank immediately about all incidences which change his/her/their financial situation and that of their business or domicile.4.2 The Borrower will need the Bank’s approval when; selling partly or entirely their fixed business assets, taking medium or long-term liabilities and pledging or selling the collateral.4.3 The Borrower may maintain a comprehensive insurance against loss by death, permanent disability, temporary disability and such other risks as the Bank may from time to time consider necessary in an Insurance Company approved by the Bank in the joint names of the Bank and the Borrower. The borrower shall duly pay all premiums for keeping such insurance. The Bank’s interest as first loss payee must be duly endorsed on the insurance policy. 5. Rights and obligations of the parties5.1 The Bank and its authorized representatives can at any time during the duration of the Credit Agreement, visit the business and physical residence of the Borrower in order to carry-out monitoring and check the financial situation, verify existence and state of the collateral, verify the use of the credit and in the event of failure to pay any instalment to confiscate/ seize the collateral. 5.2 The Borrower hereby authorise the Bank to disclose the status of payment/non-payment of instalments to the interested parties securing the loan by guarantee or collateral. The Borrower, notwithstanding the provisions of Section 111 of the Banking and Financial Services Act No. 7 of 2017, expressly authorises the Bank, in an event of default, to disclose the status of non-payment and to inquire into the new domicile/business premises of the Borrower from all references provided by the Borrower in any event requiring such action. 5.3 The Bank has the right to unilaterally terminate the Agreement and to demand immediate and full payment of the entire outstanding principal, interest, collection fees and other charges related to loan recovery as well as to immediately confiscate any collateral securing the loan in any of the following cases (each, an ‘Event of Default’):a) the Borrower fails to pay any due instalment punctually according to the repayment dates as available via eTumba;c) there is a change in the financial situation, property, organizational/legal status of either of the Borrower which in the Bank’s estimation will negatively influence the capacity of the Borrower to fulfil the terms of the Agreement; or there is a change in the market situation which creates a significant threat to the viability of the Borrowers’ activity and capacity to repay the credit;d) it is discovered that the Borrower have taken actions to mislead the Bank in anyway.Notwithstanding termination of the agreement as above, the Borrower shall be liable for any sums that are still owing to the Bank. 6. Termination6.1 Only the Bank may terminate this agreement as provided for in clause 5.3, otherwise this Agreement shall remain in force until complete fulfilment of the obligations of the Borrower herein and shall only terminate by full repayment. 7. Variation, Waiver, Severability and assignment.7.1 Variation shall only be effective by Bank’s consent in writing and all rights and remedies under this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available. In the event that any of the terms of this Agreement are found to be unenforceable, such terms will be severable from and shall not affect the remaining terms. The Bank may assign all or any of its rights under this Agreement to any person without the Borrower’s consent. 8. Evidence of Credit8.1 The Borrower hereby acknowledge and concede that the Bank’s books and accounts shall be the sole evidence of the sum due or which the Borrower is/are bound to pay in respect of the credit. 9. Credit Life InsuranceDeclarationI declare that I am in good health and actively at work at the inception of this policy or the day I am eligible to be included in the scheme and have not been absent for more than 10 days due to illness in the preceding three months.If I cannot satisfy this condition, then the cover will not be provided until:i) I have returned to work and completed two months continuous and activeActively at work means that I am not only present at my place of work on the prescribed day but I am mentally and physically capable of carrying out my normal regular duties associated with the job for which I have been employed.The above declaration is true and complete and will form the basis of this policy. I have read and understood all the above information and all documents provided are accurate and true. Terms and Conditions of Policyi. IntroductionThis contract is issued as confirmation that the person named herein has/have been added as an insured to the Master Policy issued by the Hollard Life Assurance Company Zambia Limited to the Policyholder specified herein and is available for inspection at the Policyholder’s Head Office.ii. Description of Financial InstitutionPolicyholderThe client(s) who is (are) in good health at inception of cover for the insured benefits.iii. BenefitsUpon the occurrence to the insured of the event as described below, the Insurer will pay the policyholder the following benefits as specified. iv. Balance of Indebtedness’sThe basis of indebtedness shall be the balance outstanding which will allow for the reduction of the initial sum assured by all installments which were due to be paid up to the date v. Waiting PeriodsDeath – no waitingPermanent Total Disability – 6 months waiting period will apply vi. Age LimitationsCover under these sections shall not extend in any case to any insured who at the date of the occurrence of any event has not attained his/her 18th birthday or has passed his/her 65th birthday.vii. General ExclusionsThe insurer shall not be obliged to make any payment in respect of any condition or event arising directly or indirectly from or traceable to:Intentionally self-inflicted injury; suicide or suicide attempt (whether sane or insane) within the first two years of the Life Assured’s entry date;Any act of war, military action, terrorist activities, riots, strikes, civil commotion or insurrection;Any physical defect or infirmity of which the Life Assured was aware and which has its origin prior to the granting of the life cover to the Life Assured;The Life Assured being affected (temporarily or otherwise) by alcohol or drugs other than as prescribed by a medical practitioner;The Life Assured committing any breach of criminalviii. Premium RevisionThe Actuary of the underwriter may revise the premium rate for the regular premium cover to bring rates in line with the actual number of claims received. The Insurer will give the policyholder at least 3 months written notice of any changes in the premium rates.ix. What you should do in the event of a claimAdvise the bank who will in turn submit your claim together with the relevant documentation to the Insurer. The claim must be submitted within 30 days of claim event. 10. Entire Understanding10.1 The Collateral and the Guarantee Agreements form an integral part of this agreement and there are no other promises, terms, conditions or obligations oral or written express or implied other than those contained in this agreement save as may be expressed in the terms and conditions of this agreement which are integral and found on https://www.abbank.co.zm/static/download/TERMS_AND_CONDITIONS_OF_THE_LOAN_AGREEMENTS.pdf or as maybe imposed by statute or other compulsory regulation issued by the Bank of Zambia or other regulators. 11. Governing Law and Dispute Resolution11.1 This Agreement shall be governed by the Laws of Zambia and the exclusive jurisdiction of Zambian Courts.By accepting the loan offer, the Borrower acknowledge that they have read this Agreement and that they understand and agree to the rights, obligations and liabilities hereunder.