PUBLIC SERVICE MICRO FINANCE COMPANY

ASSET LOAN APPLICATION FORM

(TO BE COMPLETED FOR FULL OR PARTIAL FINANCE BY APPLICANT)
PART 1

For Official Use Only

Customer Reference Number Account Number

To be completed by applicants
1st Applicant Personal Details

Dr/Prof/Mr/Mrs/Miss Surname Middle Name First Name

Gender Male Date of Birth NRC NO.

Female

Office Telephone No. Mobile No.

Email Address

Driver's License No (if any) Expiry Date

Residential Address

Owned Leased How Long at This Place

Postal Address
Town Province

2nd Applicant Personal Details (For Joint Applications)

Dr/Prof/Mr/Mrs/Miss Surname Middle Name First Name

Gender Male Date of Birth NRC NO.

Female

Office Telephone No. Mobile No.

Email Address

Driver's License No (if any) Expiry Date

Residential Address

Owned Leased How Long at This Place

Postal Address

Town Province

1
To be completed for Full or partial finance of assets
 3rd Applicant Personal Details (For Joint Applications)

Dr/Prof/Mr/Mrs/Miss Surname Middle Name First Name

Gender Male Date of Birth NRC NO.

Female

Office Telephone No. Mobile No.

Email Address

Driver's License No (if any) Expiry Date

Residential Address

Owned Leased How Long at This Place

Postal Address

Town Province

4th Applicant Personal Details (For Joint Applications)

Dr/Prof/Mr/Mrs/Miss Surname Middle Name First Name

Gender Male Date of Birth NRC NO.

Female

Office Telephone No. Mobile No.

Email Address

Driver's License No (if any) Expiry Date

Residential Address

Owned Leased How Long at This Place

Postal Address

Town Province

2
To be completed for Full or partial finance of assets
 PART 2

Employment Details

1st Applicant
Job Title

Ministry

Physical Address

Postal Address

Town Province

Gross Salary Current Net Salary Salary Scale

Preferred Year of Retirement Employee Number Years in Employment

Please Tick where Appropriate:

Permanent Employment Contract Employment If on Contract, state expiry date

D
D
2nd Applicant (For Joint Applications) /
Job Title M
M
Ministry /
Y
Physical Address Y
Y
Postal Address Y
Town Province

Gross Salary Current Net Salary Salary Scale

Preferred Year of Retirement Employee Number Years in Employment

Please Tick where Appropriate:

Permanent Employment Contract Employment If on Contract, state expiry date DD/MM/YYYY

3rd Applicant (For Joint Applications)

Job Title

Ministry

Physical Address

Postal Address

Town Province

Gross Salary Current Net Salary Salary Scale

Preferred Year of Retirement Employee Number Years in Employment

Please Tick where Appropriate:

Permanent Employment Contract Employment If on Contract, state expiry date DD/MM/YYYY

3
To be completed for Full or partial finance of assets
 4th Applicant (For Joint Applications)

Job Title

Ministry

Physical Address

Postal Address

Town Province

Gross Salary Current Net Salary Salary Scale

Preferred Year of Retirement Employee Number Years in Employment

Please Tick where Appropriate:

Permanent Employment Contract Employment If on Contract, state expiry date DD/MM/YYYY

1st Applicant Next of Kin Information

Name Other Names

Physical Address

Postal Address

Cell Number

Email address

2nd Applicant Next of Kin Information (For Joint Applications)

Name Other Names

Physical Address

Postal Address

Cell Number

Email address

4
To be completed for Full or partial finance of assets
 3rd Applicant Next of Kin Information (For Agric Assets Only)

Name Other Names

Physical Address

Postal Address

Cell Number

Email address

4th Applicant Next of Kin Information (For Agric Assets Only)

Name Other Names

Physical Address

Postal Address

Cell Number

Email address

__________________________________________________________________________________________________________________________________

5
To be completed for Full or partial finance of assets
PART 3A
Loan Product Applied for (Tick ONE Only)

Motor Vehicle Loan Agricultural Asset Loan Furniture Loan

Building Materials Loan Bring your Own Device Loan

PART 3B
Description of Asset: Attach Valid Quotation(s) of the Asset

PART 4A
(Note that these amounts are subject to confirmation by relevant institutions and may change)
Loan Amount Applied:

Total Cost of Asset

Total Insurance Cost

Less Advance Payment

Loan Amount Applied for

Tenure

Share of loan applied for (Asset

and Agricultural Assets Loans ONLY):

First Applicant Second Applicant

Third Applicant (Agric Asset ONLY) Fourth Applicant (Agric Asset ONLY)

First Applicant Proportion of loan (%) Second Applicant Proportion of loan (%)

Third Applicant Proportion of loan (%) Fourth Applicant Proportion of loan (%)

PART 4B
DELARATION OF SOURCE OF FUNDS: PARTIAL OR FULL FINANCE

Please state below your source of funds put forward for partial/full finance of asset (Delete whichever is not applicable)

___________________________________________________________________________________________________________________________________

PART 4C
AFFIRMATIONS

I (full name) hereby confirm that the information provided by me in this loan application, including my
source of funds put forward for partial/full finance of asset is true and correct and I have the capacity to repay the loan. I understand that this Loan Application
may be declined at any stage should any information contained herein be found to be incorrect or misleading in any material way.

I consent to PSMFC making enquiries regarding my credit history with any Credit Reference Bureau or Credit Rating Agency and for PSMFC to share my
payment behaviour with any Credit Reference Bureau or Credit Reference Agency and any other institution that it may require to do so in order to assess my
application or by applicable laws or regulation.

I consent to PSMFC reporting the conclusion of any credit agreement in compliance with the Zambian legislation.

......................................………………………….. ………………...………………………………
First Applicant Signature Date

I (full name) hereby confirm that the information provided by me in this loan application, including my
source of funds put forward for partial/full finance of motor vehicle is true and correct and I have the capacity to repay the loan. I understand that this Loan
Application may be declined at any stage should any information contained herein be found to be incorrect or misleading in any material way.

6
To be completed for Full or partial finance of assets
 I consent to PSMFC making enquiries regarding my credit history with any Credit Reference Bureau or Credit Rating Agency and for PSMFC to share my
payment behaviour with any Credit Reference Bureau or Credit Reference Agency and any other institution that it may require to do so in order to assess my
application or by applicable laws or regulation.

I consent to PSMFC reporting the conclusion of any credit agreement in compliance with the Zambian legislation.

......................................………………………….. ......................................…………………………
Second Applicant Signature Date

I (full name) hereby confirm that the information provided by me in this loan application, including my
source of funds put forward for partial/full finance of motor vehicle is true and correct and I have the capacity to repay the loan. I understand that this Loan
Application may be declined at any stage should any information contained herein be found to be incorrect or misleading in any material way.

I consent to PSMFC making enquiries regarding my credit history with any Credit Reference Bureau or Credit Rating Agency and for PSMFC to share my
payment behaviour with any Credit Reference Bureau or Credit Reference Agency and any other institution that it may require to do so in order to assess my
application or by applicable laws or regulation.

I consent to PSMFC reporting the conclusion of any credit agreement in compliance with the Zambian legislation.

......................................………………………….. ………………...………………………………
Third Applicant Signature Date

I (full name) hereby confirm that the information provided by me in this loan application, including my
source of funds put forward for partial/full finance of motor vehicle is true and correct and I have the capacity to repay the loan. I understand that this Loan
Application may be declined at any stage should any information contained herein be found to be incorrect or misleading in any material way.

I consent to PSMFC making enquiries regarding my credit history with any Credit Reference Bureau or Credit Rating Agency and for PSMFC to share my
payment behaviour with any Credit Reference Bureau or Credit Reference Agency and any other institution that it may require to do so in order to assess my
application or by applicable laws or regulation.

I consent to PSMFC reporting the conclusion of any credit agreement in compliance with the Zambian legislation.

......................................………………………….. ………………...………………………………
Fourth Applicant Signature Date

PART 6
Supporting Documentation Submitted [Tick (√)]

Applicants are advised to attach the following documents

SN Document First Applicant Second Third Fourth

Applicant Applicant Applicant
1. Introduction letter from employer
2. Certified Copies of three latest
payslips
3. Certified Copy of National
Registration Card (NRC)
4. Certified copy of valid driver's
license (if any)

5. Valid quotation from the asset dealer

6. Stamped copy of previous month's
bank statement
7. Pre-signed and undated
“STOP ORDER” instruction to your bank where you hold the
salaries account

8. Proof of marriage (Motor Vehicle

Joint Application ONLY)

7
To be completed for Full or partial finance of assets
PART 7
For Official Use Only

i. LOANS OFFICER'S COMMENTS

Recommended Declined

Amount Recommended K ___________________________________ Tenure _________________________________

Monthly Repayments:

First Applicant (K) Second Applicant (K)

Third Applicant (K) Fourth Applicant (K

First Applicant Proportion of loan (%) Second Applicant Proportion of loan (%)

Third Applicant Proportion of loan (%) Fourth Applicant Proportion of loan (%)

Total monthly repayment (K)

Effective Date __________________________

Comment:
……………………………………………………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………………………………

_________________________________________________________
Loans Officer’s Name

Signature ________________________________________ Date ___________________________________

ii. AUDIT, RISK AND COMPLIANCE DEPARTMENT FOR AUDIT

Pre Audit

Name: ____________________________________________________

Designation: _______________________________________________

Date: _____________________________________________________

Comment:

……………………………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………

Signature: ___________________________________________

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To be completed for Full or partial finance of assets
 iii. CHIEF EXECUTIVE OFFICER/DIRECTOR – OPERATIONS/ MANAGER – ASSETS

Declined Approved

Amount K _________________________________________

Comment: ……………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………

Name: ___________________________________________________________

Signature _________________________________________________________ Date _____________________________

9
To be completed for Full or partial finance of assets
 1.14. “Equipment” shall have the same meaning as Asset;

1.15. “Full financing” means the borrower has met the full cost of the
asset and has paid an appropriate administrative fee;

1.16. “Partial financing” means the borrower has met part of the cost
of the asset and has paid an appropriate administrative fee,
Terms and Conditions for the Public Service Asset Loan where applicable;

Scheme Facility
1.17. “Furniture” means the household furniture purchased by the
borrower using funds accessed by the borrower from Public
1. Definitions and Interpretations Service Micro Finance Company under the Public Service Furniture
Loan Scheme;
1.1. “Agreement” means the Facility Letter, read together with these
Terms and Conditions, the Application Form you completed and 1.18. “GRZ” means Government of the Republic of Zambia’;
all Annexure relating to this Agreement. In the event of any
differences arising from the interpretation of this Agreement in a 1.19. “Information and Communications Technology Device” means
language other than English, such differences must be resolved by desktop computers, laptop computers, palmtop computers,
referring to the English version of the Agreement, which smartphones, tablets, shredders, printers and routers
interpretation will prevail;

1.2. “Absolute Owner’’ means the Government of the Republic of 1.20. “Joint Applicants” means
Zambia, through the Ministry responsible for managing
government transport at that particular time or Public Service 1.20.1. For applications under the Public Service Motor Vehicle
Micro Finance Company, depending on the type of asset financed, Loan Scheme, a married couple applying for the
who shall be the first owner; purchase of a single motor vehicle and shall service the
loan so advanced jointly in the proportion indicated on
the Application Form;
1.3. “Advance Payment” means any monies paid to PSMFC by the
borrower as part of the Purchase Price and/or toward insurance 1.20.2. For applications under the Public Service Agricultural
or any other cost; Assets Loan Scheme, up to four (4) public service
workers who agree to purchase a single or various
1.4. “Agricultural Equipment” means the all agricultural equipment agricultural equipment under one application and shall
purchased by the borrower using funds accessed by the borrower service the loan so advanced jointly in the proportions
from Public Service Micro Finance Company under the Public indicated on the Application Form;
Service Agricultural Assets Loan Scheme;
1.21. “Juristic person” means a partnership, association of other body
1.5. “Asset” means all assets, including motor vehicles, agricultural of persons, corporate or unincorporated, or a trust;
equipment, building materials, furniture or Information
Communication Technology (ICT) devices capable of being 1.22. “Loan amount’’ means the portion of funds paid to a Supplier by
financed by Public Service Micro Finance Company and may PSMFC being a loan granted to the borrower under this
include those actually financed by Public Service Micro Finance Agreement together with the interest applicable, and shall not
Company; include any Pre-Payment;

1.6. “Balloon Payment” means that portion of the Purchase Price that 1.23. “Motor vehicle’’ means the motor vehicle purchased under the
has been suspended and which is payable as stipulated in this Public Service Motor Vehicle Loan Scheme including all the
Agreement; accessories and/or extras as per valid quotation from the supplier
or added thereon at any other time;
1.7. “Building Materials’’ means all materials which can be used for
construction of a dwelling house such as but not limited to 1.24. “MPR” or “Monetary Policy Rate” means the interest published
building blocks, bricks, cement, conforce wire, brick force wires, by the Bank of Zambia, being the benchmark for setting interest
tying wire, nails, tiles, paints, timber, steel, electrical cables, rates;
electrical finishes, plumbing materials or roofing materials being
1.25. “Person” means a partnership, association of other body of
capable of being financed by the Public Service Micro Finance
persons, corporate or unincorporated, or a trust;
Company and may include those actually financed by the Public
Service Micro Finance Company. Building materials financed
1.26. “Pre-Pay/Pre- Payment” means any monies paid to PSMFC by the
under this facility shall exclude sand, quarry dust, stones or water;
borrower towards the settling or reduction of the loan amount
which amount is in excess of the expected monthly instalment
1.8. “Business Days” means any day other than a Saturday, Sunday or
due;
any other day gazette as a public holiday in the Republic of
Zambia;
1.27. “PSMFC” means Public Service Micro Finance Company Limited, a
limited liability company incorporated under the Laws of Zambia
1.9. “Borrower”, “you” or “your” means the consumer as fully set in
being owned by the Government of the Republic of Zambia;
this Agreement;
1.28. “Public Service Agricultural Asset Plus Loan Scheme” means a
1.10. “Bring Your Own Device Loan” means the loan product or
short to medium term loan product designed to enable public
financing offered by PSMFC to eligible clients to access
service workers acquire brand-new agricultural equipment and
information and communication technology devices or offered;
other eligible agricultural assets of their choice, from renowned
agricultural assets dealers accredited by PSMFC.
1.11. “Credit Provider”, “we” or “us” means Public Service Micro
Finance Company Limited;
1.29. “Public Service Building Materials Loan Scheme” means a short to
medium term loan product designed to enable public service
1.12. “Delivery Receipt” means the authorization which you sign
workers acquire eligible brand-new building materials of their
acknowledging that you have received the asset(s) in good
choice, from renowned dealers of building materials accredited by
condition from the supplier;
PSMFC.
1.13. “Effective Rate” means the interest rate charged by PSMFC, to
1.30. “Public Service Furniture Loan Scheme” means a short to medium
you, which is a fixed rate and above the Bank of Zambia
term loan product designed to enable public service workers
Monetary Policy Rate (MPR);“Eligible Institution” means a state-
owned, grant aided or parastatal institution which has entered acquire brand-new household furniture of their choice, from
into a memorandum of understanding with PSMFC for staff renowned furniture dealers accredited by PSMFC.
access to PSMFC products;
1
To be completed for Full or partial finance of assets
 4.1.4 Whilst PSMFC or the Government of the Republic of Zambia
1.31. “Public Service Motor Vehicle Loan Scheme” means a short to
maintains an interest in the asset, you must ensure that the asset
mediumterm loan product designed to enable public service does not become attached to any other property or third party and
workers acquire prescribed brand-new motor vehicles of their you agree that you will obtain a letter releasing the asset from such
choice, either duty free or duty paid, from renowned motor attachment should such attachment occur.
vehicle dealers accredited by PSMFC.
5 Insurance

1.32. “Bring Your Own Device Loan Scheme” means a short to 5.1 Except where the asset is fully financed by the borrower, we shall
arrange, at your cost, insurance cover for the asset purchased
medium term loan product designed to enable public service under this Agreement or relating to the possession, use, ownership
workers acquire prescribed brand-new ICT equipment of their or benefit of the asset;
choice from renowned ICT devices dealers accredited by PSMFC.
5.2 In respect of any insurance policy arranged by us, we will;

5.2.1 Disclose the cost to you of any insurance supplied.

1.33. “Purchase Price”, the total sum payable by you under this
Agreement, including the sum payable by way of a deposit or
5.2.2 Be the first loss payee under the policy up to the settlement value
other initial payment;
of this Agreement at the occurrence of an insured contingency.
1.34. “Supplier” means the seller or any other party from whom you
5.2.3 Give you a copy of the Insurance Policy, and it shall be your
procure the asset;
responsibility to understand the terms and conditions thereof.

1.35. “Schedule’’ means amortized loan amount extended to the 5.3 By giving consent to this Agreement, you authorize us to pay any
borrower under this facility. premiums due under that policy and any subsequent policies during
the term of the Agreement on your behalf as they fall due and to
2. Change in Circumstances debit you monthly with the amount of such premiums.

2.1 Notwithstanding anything contained in this Agreement, any change 5.4 We shall not be liable in the event of an insurer rejecting your claim
in or introduction of any law, regulation, ruling, directive, policy and for any reason. Where an insurer rejects your claim for insurance,
/or guidelines or any similar event with which PSMFC is obliged to you remain liable to settle all outstanding amounts under this
comply and/or which is in accordance with the practice of a Agreement.
responsible financial institution or any interpretation,
administration or application thereof results in any increase to 5.5 Where any sums paid by an insurer do not extinguish your liabilities
PSMFC in the cost of maintaining and/or providing the loan or any under this Agreement, you remain liable to settle the outstanding
unused portions thereof, this shall not be passed onto the borrower sums.
but shall be recovered within the applicable interest rate in this
Agreement. 5.6 Further, we may require that you maintain credit life insurance
and/or any other appropriate insurance for a value not less than
3 Delivery and Risk the total of your outstanding obligations to us in terms of this
Agreement.
3.1 We, on behalf of the Government of the Republic of Zambia and on
our own behalf as the case may be, provide funds for purchase the 5.7 Where an insurer requires that an excess be paid where a claim is
asset (s) in your favour on the terms and conditions of this made by you, you shall be liable for the payment of the excess.
Agreement.
6 Use of the Assets
3.2 You acknowledge that you have chosen the assets (s) from the
Supplier, and that if such asset is a motor vehicle purchased duty 6.1 Where applicable, you must maintain and service the assets at your
free, it shall be used for personal and official government duty. cost in accordance with the manufacturer’s specifications.

3.3 You must inspect the asset (s) on collection from the Supplier so as 6.2 Where applicable, you must not modify the asset without our prior
to ensure that the asset (s) is/are not defective in any way and is written approval, and if you add any accessory, this will become
suitable for the purposes for which you require it. part of the asset and we shall not compensate you for this.

3.4 If you are satisfied with the asset (s), then you must acknowledge 6.3 You must not sell, let, loan, lease, pledge or transfer the asset or
this by signing the Delivery Receipt. Your signing of a Delivery any right, title and interest in the asset to another person without
Receipt is confirmation that the asset (s) is/are in good working our prior written approval from PSMFC. You must not allow the
condition and order. asset to become subject to any attachment, lien, hypothec or any
legal claim.
3.5 All risk in and to the asset (s) will pass to you and remain with you
when you take delivery of the asset (s) or when the risk leaves the 6.4 Where applicable, anyone who uses the asset must be fully
Supplier, whichever is the earlier. qualified and licensed.

4 Ownership 6.5 You must at your cost comply with any law relating to the use,
possession, licensing and/or registration of the asset.
4.1.1 For motor vehicles financed duty free, the Government of the
Republic of Zambia, through the Ministry responsible for managing 6.6 Registration
government transport at that particular time, shall remain the
absolute owner of the asset for the duration of this Agreement. 6.6.1 For motor vehicles purchased free of duty, the asset will be
registered in terms of the Road and Roads Traffic Act No. 11 of
4.1.2 For other assets capable of being registered and assets financed 2002, in the name of GRZ as “Absolute owner”, and you must keep
duty paid, Public Service Micro Finance Company shall remain the the asset in a good and roadworthy condition at your own cost.
absolute owner for the duration of this Agreement.
6.6.2 Other assets capable of being registered, the asset will be
4.1.3 On expiry of this Agreement, and provided that all monies due and registered in terms of the Road and Roads Traffic Act No. 11 of
payable are received and honoured, and any outstanding balances 2002, in the name of Public Service Micro Finance Company as
under this Agreement are settled in full, all right, title and interest “Absolute owner” with your name as first owner, and you must
in the asset will be passed on to you. Transfer of ownership from keep the asset in a good, usable and/or roadworthy condition at
the Ministry responsible for Government transport or Public your own cost.
Service Micro Finance Company, as the case may be, to yourself
shall be your responsibility. 7 Location of the Asset

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To be completed for Full or partial finance of assets
7.1 Where applicable, you must inform us in writing of any change to: 9.2 At the time of transfer of property of the asset to you or any other
- person advised by you, the borrower shall be required to pay
residual tax (if any) which shall be charged on the Net Book Value.
7.1.1 The address where the asset is normally kept; and /or
9.3 Where you acquire a motor vehicle via full financing or you have
7.1.2 The name and address of the person in permanent possession of fully settled any loans under the Public Service Motor Vehicle Loan
the asset Scheme and you cease to be a public service worker or cease to be
in employment of an eligible institution, you shall cease to enjoy
7.2 If applicable, you must inform your landlord or mortgage holder of the tax waiver and the residual tax on the duty waived becomes
the premises where the asset is kept, that we own the asset. applicable and this tax shall be computed by and paid to relevant
tax authorities.
7.3 We or our agent may inspect the asset at any reasonable time, at
the place where it is normally kept. 10 Early settlement of the Loan

7.4 You may not take the asset out of the Republic of Zambia without 10.1 You may settle this loan in full at any time with or without notice,
our prior written consent, which consent may have conditions by paying the settlement value owed to us. The settlement value
attached thereto. will be calculated as follows:

7.5 Where applicable, We, the Sheriff of Zambia or any of his officers 10.1.1 The unpaid balance of the Purchase Price; and
or the clerk of court, may request you to provide details as to the
whereabouts of the asset(s) at any time, as well as details of any 10.1.2 the unpaid interest and all other fees and charges payable by you
third-party possessor of the asset, or of the landlord or mortgage to us up until the settlement date.
holder of any premises where the asset is kept. Providing false or
misleading information or acting in a manner that is likely to 11 Breach
frustrate us from exercising our rights, is a breach of contract.
11.1 An occasion of breach shall occur if but is not limited to where: -
8 Repayments
11.1.1 You do not comply with this Agreement (all provisions of which you
8.1 All payments which shall be made by monthly instalment shall be agree are material); or
deducted from your monthly salary through the payroll unless we
agree otherwise. 11.1.2 You fail to pay any amounts due under this Agreement either
through payroll or direct debt; or
8.2 You may at any time prepay any amount under this Agreement.
Your repayments will be used to reduce your obligations in the 11.1.3 You have made any misleading statements to us before or during
following order: the course of this Agreement and or it comes to our attention that
any or all of the information that you provided us with is untrue,
8.2.1 Firstly against any due and unpaid interest; false, incomplete or otherwise does not depict the true state of
affairs;
8.2.2 Secondly against due or unpaid fees or charges; and
11.2 Upon the occurrence of any of the above-mentioned events, we
8.2.3 Thirdly against the outstanding amount of the Purchase Price or shall be entitled, at our election and without prejudice to all our
principle loan amount. other rights under this Agreement: -

8.3 If you pre-pay an amount in terms of this Agreement, you agree 11.2.1 Terminate this Agreement immediately: and
that we will use such amounts to proportionately reduce your
repayments over the remaining period of the original term of this 11.2.2 Claim immediate payment of the outstanding balance together
Agreement. with the interest and all amounts owing or claimable by ourselves,
irrespective of whether or not such amounts are due on that date;
8.4 Interest accrues daily, thus the total interest payable and the total and/or
amount repayable by you may increase if you fail to honour the
payments on the stipulated due date/s. 11.2.3 Take repossession of the asset and retain all payments already
made in terms hereof by you as lease charges towards the usage of
8.5 The loan facility shall attract a fixed repayment amount throughout the asset and claim as liquidated damages, payment of the
the Agreement. Should there be a variation on the outstanding difference between the balance outstanding and the market value
amount for reasons such as but not limited to change in interest of the asset determined by the credit provider which amount shall
rate, delayed or missed payment/s of monthly instalment or for any be immediately due and payable.
other reason, the tenor of the loan facility shall be increased to
accommodate the outstanding balance. PSMFC reserves the right 11.3 If we elect to enforce the Agreement, a notice will be sent to you,
to amend the equal monthly instalment where this is the more which will set out: -
desirable approach.
11.3.1 The details of your default;
8.6 If this Agreement is terminated by us and you dispute such
termination whilst remaining in possession of the asset, you must 11.3.2 The period within which we require you to rectify the default; and
continue to pay all amounts due. Notwithstanding our acceptance
of such payments, we will not lose any of our rights herein. 11.3.3 If, due to your fault We repossesses the leased asset and sells it,
and the net proceeds are insufficient to settle all your obligations
8.7 You agree that in the event we fail to recover from you through under the Agreement, you will be liable for any outstanding balance
payroll as agreed upon in this Agreement, we shall affect the direct plus our reasonable costs incurred in connection with the sale of
debit through your salary’s account or any other account, details of the asset or any other action in we may take to recover any
which you have provided in the Application Form or otherwise. outstanding sums owed by you. You shall also be charged interest
on the balance of the principle sum that remains outstanding,
8.8 Where a borrower ceases to be a public service worker or ceases to calculated from the date of demand till the date of final payment
be in the employment of an eligible institution the outstanding loan (interest on the principle sum continues to accrue even after a
amount immediately becomes due. Where the loan facility is in demand for full or partial settlement is made by us to you). If there
relation to the acquisition of a motor vehicle free of duty, the is a credit due to you after the asset has been sold and all
residual tax on the duty waiver becomes applicable and this tax outstanding amounts and any reasonable costs incurred have been
shall be computed by and paid to the relevant tax authority in deducted, this amount will be paid to you.
addition to the outstanding loan amount due to PSMFC.
11.4 Should we elect to terminate this Agreement pursuant to any
9 Treatment of Taxes breach of your obligations in terms of this Agreement, any monies
received in towards your loan will be applied to amounts
9.1 Taxes shall be amortized annually. outstanding with priority as set out in Clause 8.2 herein.

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To be completed for Full or partial finance of assets
11.5 Before termination of the Agreement, you are entitled to reinstate 16.2 You agree that the physical address that you have provided on this
the Agreement in respect of which you are in default, by paying all Agreement is the address that you have selected as the address
overdue amounts, as well as any reasonable costs we may have where we must send all legal notices to you.
incurred in relation to enforcing our rights under this Agreement up
to the time of reinstatement. 16.3 You must let us know, in writing, by hand delivery or registered
mail, of any change in either your residential/business address or
12 Total Loss of the Asset your email address and telephone number. If you fail to give notice
of change of address, we may use the last address we have in our
12.1 If the asset is damaged, lost or stolen, you must immediately advise records.
us in writing, and lodge an insurance claim with the insurer of the
asset within the time stipulated by the insurer and in accordance 16.4 You accept that you will be deemed to have received a notice or
with procedures set by the insurer. letter seven (7) working days after we have posted it to either of
the addresses you have given.
12.2 If the asset: -
17 Joint Applications
12.2.1 Shall be repaired or replaced by the insurer, you shall continue to
service your loan facility under this agreement, inclusive of the 17.1 You agree that any differences which may arise between Joint
duration when you shall not have use of the asset. In the case of Applicants shall not in any way affect the Credit Provider’s right to
replacement, the replacement asset shall be registered as property recover in full all the monies due, or any other rights, under the
of the Government of the Republic of Zambia or PSMFC, as the case terms of this agreement.
may be, and shall be held as security for this loan facility until it is
settled in full. 18 Full financing

12.2.2 Shall not be repaired or replaced by the insurer then this 18.1 You agree that PSMFC shall levy an appropriate charge to meet its
Agreement will terminate, and we shall demand full payment of administrative costs and that you are responsible for meeting the
failing which we may institute proceedings against you in terms of insurance cost and all other running costs of the asset.
clause 9 herein.
19 Tracking Devices
12.3 Where the insurer pays any monies towards the replacement of
the asset/sthe funds shall be applied to settling any outstanding 19.1 If you decide to fit any tracking device on the purchased asset, you
balances on your loan. Should there be any monies left after need to get written consent from us and you agree that we may
settling any outstanding balances on your loan account, such contact the tracking company in order to obtain information to
monies shall be paid to you. Under these circumstances, where this locate the asset.
is a motor vehicle loan, you shall be entitled to access the Public
Service Motor Vehicle Loan Scheme upon settlement of the 19.2 You indemnify and hold us and/or the tracking company and/or any
account in relation to the previously insured vehicle. third party harmless against claims, costs, damages or loss of
whatsoever nature and howsoever arising relating:16.2.1 To the
13 Appropriation and set off activation or the removal of the tracking device; and/or 16.2.2 Any
information obtained from the tracking company.
13.1 We may at any time, before or after termination of this Agreement,
in our discretion, appropriate or re appropriate any monies 20 Payment for Asset
received from you or set off any amounts realized from you or set
off any amounts realized from the sale of the asset should it be 20.1 We shall not accept an advance payment, a deposit or full payment
repossessed, towards the reduction of any amounts owed by you in respect of the asset made in cash. All such payments shall be
to us whether in terms of this agreement or otherwise. You made by transfer to a bank account advised by us in writing.
specifically waive your right to name the debt to which any However, bank transfers from third parties other than yourself shall
payment shall be applied. not be accepted.

14 Cession and Assignment 20.2 Any payment, advance or full, in respect of the asset to be acquired
under this Agreement made directly to a Supplier shall not be
14.1 Unless otherwise agreed, you may not transfer any of your rights accepted or acknowledged by us.
and/or obligations to a third party.
20.3 Any payment of any amount forming part of the loan amount in
14.2 We may without notice to you, transfer any of our rights and/or respect of this Agreement shall be made by PSMFC directly to a
obligations to a third party and you agree that you will recognize Supplier and not to the borrower although it shall be recognised as
the transferee’s rights. a loan to the borrower.

15 Costs and Fees 21 Usage of Asset

15.1 All costs relating to initiation and administration of your account 21.1 Usage of the asset acquired under this Scheme shall be in
shall be included in the interest rate charged on this Agreement. accordance with Circulars issued by the Secretary to the Cabinet
from time to time.
15.2 You will be liable for the default administration and collection costs
arising from your failure to comply with any of the terms and 22 General
conditions of this Agreement and for all legal costs and collection
commission on all payments made by you if the matter is referred 22.1 If we have not strictly enforced the terms and conditions of this
to an external debt collection company or attorney. Default Agreement at any time, you may not assume that the terms and
administration costs determined by the credit provider will be conditions have been waived or altered. These terms and
charged for every letter that we address to you. You therefore conditions will still apply, and we will have the right to enforce the
agree to reimburse, indemnify or make good any loss, damage or terms and conditions at any time.
costs that we may incur or suffer should we have to enforce this
Agreement in any manner including but not limited to engaging 22.2 An annual statement of account shall be issued and sent to your
lawyers or debt collectors and commencing court proceedings or address as advised in the Application Form or by yourself
any other form of dispute resolution. subsequent to you obtaining this loan. In case you require a
statement in addition to the annual statement, the statement of
16 Addresses account can also be requested from our offices, but this will be
issued at a fee which shall be determined at the sole discretion of
16.1 You agree that the postal and or email address that you have the company.
provided on this Agreement is the address where we must send all
post and other communication to you, and that such 22.3 The loan facility shall be used to purchase a brand-new asset (s)
communications will be binding on you. from Suppliers as shall be advised by PSMFC from time to time.

23 Acknowledgments and Confirmations

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To be completed for Full or partial finance of assets
23.1 By signing this Agreement you acknowledge and confirm that: - 23.1.16 You make an irrevocable personal undertaking to pay the
balance of the loan together with accrued interest in the event of
23.1.1 You are not subject to disciplinary proceedings by your employer; being terminated from my employer’s payroll on account of my
resignation, dismissal or other event not covered by insurance;
23.1.2 You are not subject to litigation or an order of a competent court
holding you to be bankrupt or insolvent; 23.2 In pursuance of the conditions under which this loan was granted,
you hereby irrevocably authorize the Credit Provider, acting on its
23.1.3 You are not subject to an order of a competent court holding you own or through its agents, to communicate your obligation to pay
to be mentally unfit; to your employer, and authorize your employer to deduct such
amount as indicated by the credit provider from your salary and
23.1.4 We may provide a credit rating agency with any of your personal remit the amount so deducted to the credit provider until the loan
information and data in connection with your application for amount with accrued interest is fully paid; In case of unforeseen
finance, the commencement and termination of this Agreement incidents, other than those in ‘’Clause 18.1.15’’ that may disrupt
and any related matters; loan recoveries through payroll deductions, You hereby authorize
your employer to make recoveries from your terminal benefits
23.1.5 We may submit any information as to how you conduct your and/or gratuity to settle this loan facility in full, or as far as funds
account to any credit rating agency of our choice, which may use due to you permit.
this information to create a credit profile and/or a credit score on
you. If you do not conduct your account in accordance with this
I (full name) hereby certify that I
Agreement, this may adversely affect your future credit worthiness.
You have the right to have your credit record disclosed and you may have read the
challenge any incorrect information and have the information information contained in this Agreement and fully understand the
corrected; implication thereof and that I do accept to abide by them.

23.1.6 If you are unable to contact the credit rating agency that we opt to ………………………………………………………………………………
use due to any change in its contact details, you may contact us for First Applicant’s Signature
assistance;

23.1.7 We may provide a settlement value to any third party to whom you
may wish to sell the asset and to any governmental agency that may Date_________________________________________
request same.
I (full name) hereby certify that I
23.1.8 This Agreement has been explained to you and you understand and
have read the information contained in this Agreement and fully
appreciate the costs, risks and obligations associated herewith;
understand the implication thereof and that I do accept to abide by them.
23.1.9 You have received a copy of the Agreement;

23.1.10 In the event of any dispute arising from this Agreement, and
the parties are unable to resolve such dispute by means of co-
operation or discussion between them, such dispute may at our ............................................................................................
discretion be referred to a single arbitrator chosen by the parties or Second Applicant’s Signature
otherwise two arbitrators to be appointed by each party who shall
appoint a Chairperson and in either case in accordance with the
provisions of the Arbitration Act No.19 of 2000 of the Laws of Date__________________________________________
Zambia for any statutory modification or re-enactment there for
the time being in force. The Arbitral award shall be final between
the parties; I (full name) hereby certify that I
have read the information contained in this Agreement and fully
23.1.11 Any claim which arises out of this Agreement may be understand the implication thereof and that I do accept to abide by them.
recovered in any competent Court having jurisdiction over you and
you hereby consent to the jurisdiction of such competent Court.

23.1.12 The Credit Provider may make enquiries from any Bank, ............................................................................................
Financial Institution or approved Credit Reference Bureau in Third Applicant’s Signature
Zambia to confirm any information you have provided when
considering this application.

23.1.13 In the event of any default in repayment, unless the amount

in default is fully repaid before the expiry of sixty (60) days from the Date__________________________________________
date such default occurred, we shall be at liberty to notify the
Credit Reference Bureau and the borrower shall be liable to have
I (full name) hereby certify that I
the account data retained by the Credit Reference Bureau until the
have read the information contained in this Agreement and fully
expiry of seven (7) years from the date of final settlement of the
understand the implication thereof and that I do accept to abide by them.
amount in default. However, the credit provider retains its rights to
enforce payment of the unpaid loan amount in full or in part,
together with the accrued interest. For the purpose of this Clause
and any Party that may be appointed by the Credit Provider to
collect its debts, I waive the confidentiality requirements of the ............................................................................................
Banking and Financial Services (Microfinance) Regulations, 2006. Fourth Applicant’s Signature

23.1.14 Upon termination of the account by full repayment and on Date________________________________________

condition that there has not been, within seven (7) years
immediately before account termination, any material default on
the account, the borrower will have the right to instruct the credit
provider, and the credit provider shall oblige, to make a request to
the Credit Reference Bureau to delete from its data any account
data detailing to the termination account.

23.1.15 You are free to be informed, upon request about which items
of data are routinely so disclosed and to be provided with further
information to enable the making of a data access and correction
request to the relevant Credit Reference Bureau or Debt Collection
Agency.

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To be completed for Full or partial finance of assets