Credit Line Terms and Conditions
1. Definitions and Interpretations
In this agreement, unless the context otherwise requires, the following terms shall have the meanings set out below:
- "Agreement" refers to these Terms and Conditions along with any other documents referenced or incorporated herein.
- "Borrower" means the individual applying for or obtaining a loan through the Credit Line platform.
- "Credit Line" refers to Credit Line Limited, a digital platform facilitating the loan process between borrowers and lenders but not issuing loans itself.
- "Lender" means the financial institution or entity that provides loans to borrowers through the Credit Line platform.
- "Loan" refers to the amount of money provided by the lender to the borrower, which is subject to repayment according to the agreed-upon terms.
- "Payroll Deduction" is the process by which loan repayments are automatically deducted from the borrower’s salary or wages and remitted to the lender.
- "Platform" refers to the digital platform operated by Credit Line Limited for the facilitation of loans between borrowers and lenders.
- "Data Privacy and Protection Laws" includes all applicable laws and regulations in Malawi regarding the protection of personal data, including the Malawi Data Protection Act.
- "Electronic Transactions and Cyber Security Act" refers to the Electronic Transactions and Cyber Security Act 2016 of Malawi, which governs electronic transactions, digital signatures, and data protection.
- "Default" refers to the failure of the borrower to meet the terms of the loan agreement, including missed or late payments.
- "Fraud Prevention Data" includes any data collected by Credit Line Limited for the purpose of reducing the risk of fraud on its platform, such as location data, call logs, contacts, messages, and other device information.
- "Electronic Communication" refers to any communication made through electronic means, including emails, text messages, or notifications via the Credit Line platform.
- "Force Majeure" means circumstances beyond the control of Credit Line that prevent or delay the fulfillment of its obligations under this agreement, including but not limited to natural disasters, acts of war, civil unrest, or governmental actions.
- "Consent" refers to the borrower’s agreement to the terms and conditions outlined in this document, as indicated by their signature or electronic acceptance.
- "Signature" refers to the borrower’s physical or electronic signature, which legally binds them to the terms and conditions of this agreement.
- "Notice" means any formal communication or notification required under this agreement delivered electronically or in writing.
- "Severability" is the principle that if any part of this agreement is found to be invalid or unenforceable, the remaining provisions will remain in full force and effect.
- "Waiver" is the voluntary relinquishment or delay in enforcing a right or claim under this agreement.
- "Assignment" refers to the transfer of rights or obligations under this agreement to a third party.
- "Modification" means any changes made to this agreement by Credit Line, which will be communicated to the borrower.
2. Role of Credit Line as a Facilitator
Credit Line Limited operates as a digital platform facilitating the connection between borrowers and lenders. Credit Line does not issue loans, set loan terms, or have any decision-making authority regarding loan approvals. The agreement and relationship concerning the loan are exclusively between the borrower and the lender. Credit Line provides administrative and technological support to ensure smooth processing of loan applications and repayments.
3. Loan Application Process
Borrowers may apply for loans via the Credit Line platform, where applications will be submitted to the lender of their choice. All loan approvals are at the sole discretion of the lender, who will assess applications based on their own criteria, including but not limited to creditworthiness, employment status, and repayment capacity. Credit Line does not guarantee loan approval and shall not be liable for any rejection or delay in the processing of loan applications.
4. Loan Repayment and Payroll Deduction Authorization
By entering into this agreement, the borrower authorizes Credit Line to facilitate the deduction of loan repayments directly from their payroll on behalf of the lender. The borrower agrees that these deductions will be in accordance with the repayment schedule provided by the lender and communicated through the Credit Line platform. It is the borrower’s responsibility to ensure that their payroll is sufficient to cover the scheduled deductions. Failure to do so may result in penalties, additional fees, or legal action by the lender.
5. Interest Rates, Fees, and Charges
The interest rate, associated fees, and other charges applicable to the loan will be determined solely by the lender and communicated to the borrower during the loan application process. Additionally, Credit Line will charge a facilitation/service fee, which is separate from the lender’s charges. This facilitation/service fee will be clearly displayed to the customer at the time of loan application and may change from time to time without prior notice. The borrower is advised to review and understand all terms, including interest rates, lender fees, and Credit Line’s facilitation/service fee, before accepting any loan offer. Credit Line does not influence the lender’s terms and cannot be held responsible for any misunderstandings regarding the loan costs.
6. Default and Consequences
In the event of default on loan repayments, the lender reserves the right to pursue legal remedies against the borrower, including but not limited to reporting the default to credit bureaus, initiating legal proceedings, and taking steps to recover the outstanding debt. Credit Line’s role is limited to facilitating payment deductions, and it bears no liability for any actions taken by the lender due to borrower default.
7. Data Privacy and Protection
Credit Line is committed to protecting the privacy and confidentiality of borrowers' personal and financial information. By using the Credit Line platform, the borrower consents to the collection, use, storage, and sharing of their data as necessary to facilitate the loan process. This includes but is not limited to sharing information with lenders, payroll administrators, credit bureaus, and other third parties involved in the loan process. Credit Line may also use aggregated and anonymized data for analytical, marketing, and service improvement purposes. All data handling practices are in compliance with applicable data protection laws.
8. Electronic Transactions and Communication
By using the Credit Line platform, the borrower consents to conduct transactions electronically and acknowledges that all agreements, notices, disclosures, and other communications provided by Credit Line electronically satisfy any legal requirement that such communications be in writing. The borrower agrees that their electronic signature, where applicable, is the legal equivalent of their physical signature. The borrower is responsible for maintaining the confidentiality of their login credentials and for any activity conducted under their account.
9. Legal Compliance and Governing Law
This agreement shall be governed by and construed in accordance with the laws of Malawi. The borrower agrees to comply with all applicable laws and regulations. Any disputes arising under this agreement shall be subject to the exclusive jurisdiction of the courts of Malawi.
10. Modification of Terms
Credit Line reserves the right to modify these terms and conditions at any time. Any changes will be communicated to the borrower via the Credit Line platform or other electronic means. Continued use of the platform following the posting of changes constitutes acceptance of the revised terms. If the borrower does not agree to the changes, they must cease using the platform and notify Credit Line to terminate their account.
11. Termination of Services
Either party may terminate this agreement with written notice. Upon termination, the borrower remains obligated to repay any outstanding loans under the terms agreed with the lender. Credit Line will continue to facilitate the deduction and remittance of loan repayments until the loan is fully repaid.
12. Limitation of Liability
Credit Line shall not be liable for any indirect, incidental, special, or consequential damages arising from or in connection with the use of the platform, including but not limited to loss of profits, data, or business opportunities. Credit Line’s total liability to the borrower shall not exceed the fees received by Credit Line for facilitating the borrower’s loan.
13. Indemnification
The borrower agrees to indemnify and hold harmless Credit Line, its affiliates, directors, officers, employees, and agents from any claims, liabilities, damages, losses, or expenses arising out of or in connection with their use of the platform, the loan agreement with the lender, or any breach of these terms and conditions.
14. Severability
If any provision of this agreement is found to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
15. Entire Agreement
This agreement constitutes the entire agreement between the borrower and Credit Line with respect to the subject matter hereof and supersedes all prior or contemporaneous communications and proposals, whether electronic, oral, or written.
16. Collection of Additional Data for Fraud Prevention
Credit Line may collect additional data to reduce the risk of fraud on its platform. This data may include but is not limited to the borrower’s location, call logs, contacts, messages, and other device information. The borrower consents to the collection and use of this data solely for the purpose of preventing fraudulent activities and ensuring the security of transactions conducted through the Credit Line platform. All collected data will be handled in accordance with applicable data protection laws and will not be shared with unauthorized third parties.
17. Notification and Communication
All notices, communications, and disclosures required or permitted under this agreement shall be in writing and delivered via the Credit Line platform, electronic mail, or any other electronic means agreed upon by both parties. It is the borrower’s responsibility to ensure that their contact information is up-to-date and accurate. Failure to receive notices due to incorrect contact information does not relieve the borrower of their obligations under this agreement.
18. Consent to Credit Checks
By applying for a loan through the Credit Line platform, the borrower consents to the lender conducting credit checks and obtaining information about their credit history from credit bureaus and other sources. The borrower acknowledges that such information will be used by the lender to assess their creditworthiness and may affect the approval of their loan application.
19. Waiver of Rights
Any waiver of rights under this agreement by Credit Line must be in writing and signed by an authorized representative of Credit Line. The failure of Credit Line to enforce any provision of this agreement shall not constitute a waiver of the right to enforce that provision in the future.
20. Assignment of Rights
Credit Line may assign its rights and obligations under this agreement to any third party without the borrower’s consent. The borrower may not assign their rights or obligations under this agreement without the prior written consent of Credit Line.
21. Force Majeure
Credit Line shall not be liable for any failure or delay in performing its obligations under this agreement due to circumstances beyond its reasonable control, including but not limited to acts of God, natural disasters, war, civil unrest, strikes, labor disputes, or governmental actions.