Document:

Version Number:
Date last amended:
Date effective on system:
NCR number: NCRCP5

Standard Terms and Conditions (Loan)

15 (Markup)
4 June 2008
TBA
Version Number: 2007.3

Information
Letter
CREDIT
TRANSACTION
(LOAN)
In terms of section 93 of the National Credit Act 34 of 2005
Dear Valued Customer
African Bank Limited (African Bank) is very pleased to advise you that your application for credit has been
successful.

STANDARD TERMS AND CONDITIONS

When you take out a loan with African Bank you need to fully understand how, when and what you have to do to
make sure that your loan is paid on time so that you remain a top class client, with a good credit record. This letter
These
are
and/ credit
conditions
that
will apply
your
loan with African Bank. It is very important for you
explains
allthe
theStandard
details ofterms
the loan
facility
process
and to
your
responsibilities.
to read this document and to understand what your rights and obligations are. If you do not understand any of these
terms
andWhen
conditions
youMoney
read this document please speak to your branch consultant or contact our Consumer
How and
Will Iwhen
Get My
Service
Call Centre
onhave
: 086borrowed
111 1011
The amount
that you
will be paid to you in cash, directly into your bank account, or into your Credit
Card account, in accordance with what you have requested.
Right
to reasons
What Can
I Affordfor credit being refused
On
request,
African has
Bankbeen
mustmade
provide
me inincome
writingand
withexpenditure
the dominant
refusing
enter
into a credit
my
A full
assessment
of your
by reason
Africanfor
Bank
usingtothe
information
that
agreement,
offering
a lowerBank,
creditand
limit
the at
one
I applied
for,onrefusing
a request
increase
the
you have
given me
to African
bythan
looking
your
accounts
the Credit
Bureau,from
and me
on atoregister
called
creditthe
limit
under an
existing
credit facility, or refusing to renew an expiring credit facility.
National
Loans
Register.

Based on the information that you have given African Bank, African Bank has calculated the amount of the loan
Right/ to
receive
documents
in officialthat
language
credit
facility
and the instalment
you can afford. African Bank did all of this because it is important that you
I am entitled
any particular
document
the manner
selected
methat
in an
official
language
that
are abletotorequest
afford delivery
the loanof/ credit
facility that
AfricaninBank
has given
you,by
and
you
are able
to pay
theI
read installments
and understand,
to causing
the extent
section
63 of the NCA. Where I elect to receive a document in
without
youpermitted
to fall into by
financial
difficulty.
person
a location
other that
thanyou
the business
premises
of African
Bank,
African
Banktoshall
be entitled
recover
the

Onatthe
information
have supplied
to African
Bank,
you
are able
afford
to repaytothe
monthly
delivery
costs from
installment
asme.
set out in your agreement. If this is not correct, you must inform African Bank that you cannot
afford to pay the installment before taking up this loan / credit facility, because if you dont, and you fall into
Cost financial
of creditdifficulty it could mean that you may not be fully protected by the Credit laws.
African Bank will charge interest on the balance of the amount outstanding, from time to time, either at a fixed or
variable
of interest,
and
indicated in the PRE-AGREEMENT STATEMENT AND QUOTATION FOR
How andrate
When
Do I Have
tothis
Payrate
My is
Installments
SMALL
AND
INTERMEDIATE
CREDIT AGREEMENTS
A CREDIT
TRANSACTION
be

Your
loan
/ credit facility installment
payment datesFOR
are set
out on the
front page of (LOAN).
your loanInterest
/ credit will
facility
calculated
daily on
the ifoutstanding
balance
will be deduction
added to the
yourinstallments
loan once aare
month
agreement.
Even
you have debit
orderand
or payroll
yououtstanding
must make balance
sure thatofyour
paid
(capitalised
monthly,
in arrears.)
in full and
on time.

All deductions are made in terms of the debit order/stop order/payroll deduction authority form which you have
Default
Administration and Acceleration
signed.
If
on have
my obligations
this agreement
I will
to pay
administration
to African
I default
You will
to pay the under
first installment
on your
loanhave
7 days
afterdefault
the date
upon which charges
the money
that youBank.
have
In addition
African
willBank
be entitled
to you
terminate
this behalf.
agreement
giving
me notice.
amount
that is in
borrowed
fromBank
African
is paid to
or on your
Yourafter
second
installment
and Any
all further
installments
default
arrears
bearfirst
interest
rateand
referred
in the PRE-AGREEMENT
STATEMENT
QUOTATION
willorbe
due will
on the
day at
ofthe
each
everytomonth
thereafter. African Bank
will use AND
its best
efforts to
FOR accommodate
SMALL AND your
INTERMEDIATE
CREDIT
AGREEMENTS
FOR Afrom
CREDIT
TRANSACTION
(LOAN).
Such
request that the
installment
should be deducted
your bank
account on the
day on which
arrears
will be calculated daily and capitalised monthly. If I die, or commit any act of insolvency, or default
youinterest
get paid.
with
obligations
of this
agreement,
theimmediately
full amountcontact
outstanding
termscall
of centre,
this agreement

Ifmy
you
are unableintoterms
pay your
installment
please
African in
Banks
the detailswill
of
immediately
become
owing
and
payable.
which are
set outdue,
at the
end of
this
letter. If I am in default of any of my obligations in terms of this Agreement,
African Bank may institute legal action against me, which could result in a court judgement against me, attaching and
selling
my property
and attaching
to recover the loan. This would mean that I would have a bad credit
What Happens
if I Dont,
or Cant my
Paysalary
My Installments
record.

If there is not enough money in your bank account to cover the debit order, or if you are unable to make a cash
payment that is due, you must ensure that payment is made to African Bank by some other method such as
Earlycash
settlement
& at
right
terminate
loandeposit into our bank account. African Banks Account details are set
payment
theto
branch,
or bymy
direct
I understand
thatconvenience
I can settle at
my
out for your
theloan
endatof any
this time
letter.without giving notice to African Bank by paying the total of the
unpaid
capital
of the
amount
that account
I borrowed,
together
with order,
any unpaid
interest
other debit
fees

If there
is balance
not enough
money
in your
to meet
the debit
your bank
maycharges
charge and
you all
a return
and charges,
calculated up to the date of payment.
fee.

If you are unable to pay your installment in full and on time please contact African Banks Call Centre as soon as
Instalment
Due
possible
soDate
that alternative arrangements can be made. If you do this some of the negative consequences set
My first
willavoided.
become due, owing and payable 7 days after the date upon which the money that I have
out instalment
below can be
borrowed
African
Bank
is paidontotime:
me or paid on my behalf, and all further instalments will become due owing

If youform
do not
pay your
account
st
and payable
the 1fullday
of each
and at
every
onThe
amount
owing
the month
time ofthereafter.
your failure to pay could become immediately payable and you
could be charged a default administration fee, and you will continue to be charged interest on the
outstanding balance of your loan / credit facility;
Addresses
receiving
ofcould
documents
for Your
default
be reported to the Credit Bureau and you could have a bad credit record;
Any document
that either
send
the other
the address
set inagainst
the PRE
African
Bankparty
couldwishes
cancel to
your
loanto/ credit
facilitymust
and be
maysent
alsotoinstitute
legal action
you.
AGREEMENT STATEMENT
AND
FORbeing
SMALL
AND against
INTERMEDIATE
CREDIT
AGREEMENTS
court judgement
granted
you, and your
property
being sold toFOR
pay
This could result
in aQUOTATION
A CREDIT TRANSACTION
(LOAN).
your debts, or
your instalment payments being deducted directly from your pay. If this happens you
If such document
is :-find it difficult to obtain further credit from other credit providers such as cell phone providers,
may

sent clothing
by ordinary
mail in ashops.
correctly addressed envelope to the other partys chosen address, it will be
and furniture
th
considered
asbe
received
on the
(seventh)
after posting (unless the contrary is proved); or

You will
responsible
for7 the
lawyers day
costs;

delivered
by hand
a responsible
person
during
ordinary
other
chosen

If African
Banktohas
issued you with
a credit
card
facilitybusiness
and you hours
defaultatonthe
your
cardpartys
payments
the
address,
will be
considered
received
Bankit may
suspend
your as
credit
card. on the day of delivery; or
VAT registration number 4720108960
African Bank Logo
Registration number 1975/002526/06
African Bank Limited, an Authorised Financial Services Provider
Version number: XXXXXXX
59 16th Road, Halfway House, Midrand, 1686
NCR number: NCRCP5

Page 1 of 2

Page 11 of
of 24
Page

Version Control
Document:
Version
Number:
NCR number:
NCRCP5
Date last amended:
Date effective on system:

Standard Terms and Conditions (Loan)

15 (Markup)
Version Number: 2007.3
4 June 2008
TBA

Information Letter

transmitted by telefax to the chosen telefax number set out above or sent by electronic mail to the chosen
email address, it will be considered as received on the date of transmission (unless the contrary is proved).
Any
actually received by a party will be an adequate written notice or communication to that party, even
Deardocument
Valued Customer
though it was not sent to or delivered at the chosen address. Either party may change their address by delivering to
the
other Bank
party aLimited
written (African
notice of the
new address
by hand, to
registered
mail,that
or electronic
mail.
African
Bank)
is very pleased
advise you
your application
for credit has been
successful.
Repayment
IfWhen
I haveyou
more
loanwith
withAfrican
AfricanBank
Bank,you
I agree
African
Bank may
usewhen
any credit
balance
due totome
takethan
outone
a loan
need that
to fully
understand
how,
and what
you have
do to
to
pay
offsure
any amount
another
loan.so
Any
payment
that Iamake
will be
usedwith
to firstly
settle
interest,
secondly
to
make
that yourI owe
loan on
is paid
on time
that
you remain
top class
client,
a good
credit
record.
This letter
satisfy
fees,
costs
or charges,
and /thirdly
reduce
the amount
of the
principal debt.
explains
all the
details
of the loan
credit to
facility
process
and your
responsibilities.

Confidentiality
How and When Will I Get My Money
Unless
African
Bank
obliged
to do will
so by
disclose
any of
confidential
information
my
The amount
that
you ishave
borrowed
be law,
paid ittowill
younot
in cash,
directly
intomy
your
bank account,
or into without
your Credit
express
consent
or instruction.
consent
to African
Bank disclosing, reporting or releasing any information that
Card account,
in accordance
withI what
you have
requested.
African Bank suspects may be fraudulent, or information relating to any unlawful activity relating to me to the South
African
Fraud
Prevention Services (SAFPS) and/or any similar organisation or bureau, as well as reporting or
What Can
I Afford
releasing
any
credit information
relating
meyour
to any
creditand
bureau.

A full
assessment
has been
madetoof
income
expenditure by African Bank using the information that
you have given to African Bank, and by looking at your accounts on the Credit Bureau, and on a register called
Certificate
the National Loans Register.
A certificate,
by a manager
African
Bank
(whose
appointed
need
not be proved),
reflecting
the
Based signed
on the information
thatemployed
you have by
given
African
Bank,
African
Bank has
calculated
the amount
of the loan
outstanding
that the
is due
owing and
me toAfrican
AfricanBank
Bankdid
will
proofit of
my indebtedness
/ creditamount
facility and
instalment
thatpayable
you canby
afford.
allbe
of sufficient
this because
is important
that you
to African
Banktoforafford
the purposes
provisional
summary
judgement
anyand
other
unless
I am
are able
the loan of
/ credit
facilitysentence,
that African
Bank has
given or
you,
thatproceedings,
you are able
to pay
the
able toinstallments
prove otherwise.
without causing you to fall into financial difficulty.

On the information that you have supplied to African Bank, you are able to afford to repay the monthly
Assignment
installment as set out in your agreement. If this is not correct, you must inform African Bank that you cannot
African
Banktowill
bethe
entitled
to cede,
sell, assign,
all /orcredit
any of
its rights
under ifthis
afford
pay
installment
before
taking or
uptransfer
this loan
facility,
because
youagreement,
dont, andwithout
you fallyour
into
consent
or prior
notice ittocould
you. mean
You may
delegate,
assign,byorthe
transfer
of your rights or obligations
financial
difficulty
that not
you cede,
may not
be fullysell,
protected
Creditany
laws.
in terms of this agreement.
How and When Do I Have to Pay My Installments
Legal
costsloan / credit facility installment payment dates are set out on the front page of your loan / credit facility

Your
If I default
on my Even
loan, ifI agree
thatdebit
I will order
be liable
for, and
pay all African
Banks
on an attorney
agreement.
you have
or payroll
deduction
you must
makelegal
surefees
that and
yourcosts
installments
are paid
and client
well as any necessary disbursements and other charges (including collection costs such as
in full scale,
and onas
time.
tracing
and collection
commission)
that
Bank
may incur
in collectingdeduction
the debt from
me. form
I further
agree
I

Allcost
deductions
are made
in terms of
thethe
debit
order/stop
order/payroll
authority
which
youthat
have
will besigned.
liable to pay interest at the contractual rate on the said disbursements and charges that the Bank may levy in
the
of have
collecting
thethe
debt
me.
process
You will
to pay
firstfrom
installment
on your loan 7 days after the date upon which the money that you have
borrowed from African Bank is paid to you or on your behalf. Your second installment and all further installments
Jurisdiction
will be due on the first day of each and every month thereafter. African Bank will use its best efforts to
I agree
that any legal
proceedings
that
Bank should
intendsbebringing
against
me, as
a result
of aoncredit
agreement,
accommodate
your
request that
theAfrican
installment
deducted
from your
bank
account
the day
on which
may be
brought
in the Magistrates Court and I consent to the jurisdiction of the Magistrates Court.
you
get paid.

If you are unable to pay your installment please immediately contact African Banks call centre, the details of
Miscellaneous
which are set out at the end of this letter.
I understand that in order for African Bank to maintain and improve the quality of the services it provides to its
customers
any telephone
that are
by or to its customers are recorded. I give my consent to African Bank
What Happens
if I Dont,calls
or Cant
Paymade
My Installments
to
any istelephone
callmoney
between
us. I bank
agreeaccount
that I will
promptly
writing,
of to
any
change
in
record
If there
not enough
in your
to cover
the notify
debit African
order, orBank,
if youinare
unable
make
a cash
my address,
number,
employment
or banking
I also
agree Bank
that I by
willsome
immediately
notify such
African
paymenttelephone
that is due,
you must
ensure that
paymentdetails.
is made
to African
other method
as
Bank cash
if I should
become
insolvent,
under
administration
or have
any other
formBanks
of legal
disability.
payment
at the
branch,be
or placed
by direct
deposit
into our bank
account.
African
Account
details are set
out for your convenience at the end of this letter.
Administration/Sequestration

If there is not enough money in your account to meet the debit order, your bank may charge you a return debit
My estate
fee. is not subject to debt review and is not under administration, nor am I an un-rehabilitated insolvent. I
further
I amtonot
and nor doinI contemplate
anyplease
application
to place
my
estateCall
under
debtas
review

If confirm
you are that
unable
payaware
your installment
full and on time
contact
African
Banks
Centre
soon or
as
administration
repayment
of this Agreement.
possible during
so thatthe
alternative
arrangements
can be made. If you do this some of the negative consequences set
out below can be avoided.

If you do not pay your account on time:

The full amount owing at the time of your failure to pay could become immediately payable and you
could be charged a default administration fee, and you will continue to be charged interest on the
outstanding balance of your loan / credit facility;

Your default could be reported to the Credit Bureau and you could have a bad credit record;

African Bank could cancel your loan / credit facility and may also institute legal action against you.
This could result in a court judgement being granted against you, and your property being sold to pay
your debts, or your instalment payments being deducted directly from your pay. If this happens you
may find it difficult to obtain further credit from other credit providers such as cell phone providers,
clothing and furniture shops.

You will be responsible for the lawyers costs;

If African Bank has issued you with a credit card facility and you default on your card payments the
Bank may suspend your credit card.

African Bank Logo

African
Bank Limited, an Authorised Financial Services Provider

59
16th Road, Halfway House, Midrand, 1686

Page 2

VAT registration number 4720108960

Registration number 1975/002526/06
Version number: XXXXXXX
NCR number: NCRCP5

of 2

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