Bank loan terms

1. INTRODUCTION

This document constitutes the legally binding terms and conditions ("Agreement") between Blipply Ltd (hereinafter referred to as "the Lender"), a licensed financial institution registered under Kenyan law and holding a valid Data Protection License issued by the Kenyan Government, and the individual or entity applying for the loan (hereinafter referred to as "the Borrower"). By submitting a loan application via the Lender’s digital platform ("the App"), the Borrower acknowledges and agrees to these terms. The Lender operates within the regulatory framework of the Central Bank of Kenya (CBK) and complies with the Data Protection Act (2019) to ensure lawful data handling and borrower protection.

2. PARTIES TO THE AGREEMENT

a) The Lender: Blipply Ltd, a registered company under Kenyan law, with its registered office at Westlands Nairobi, and holding a valid Data Protection License issued by the Kenyan Government.

b) The Borrower: The individual or entity applying for the loan via the App.

3. ELIGIBILITY AND APPLICATION

a) As per the Consumer Protection Act, 2012 borrowers must provide complete, accurate, and truthful information during the application process. Any submission of false, misleading, or fraudulent information constitutes a breach of this Agreement and may result in legal action under the Penal Code (Cap 63, Laws of Kenya).

b) The Lender reserves the right to verify all details, request additional documentation, and approve or reject loan applications at its sole discretion.

c) The Borrower agrees that clicking the "Submit" or "Apply" button on the App constitutes a legally binding action, committing them to these terms and conditions. A digital copy of this Agreement shall be sent to the email provided during the application and shall also be available within the App.

4. LOAN TERMS

a) The loan amount, interest rate, repayment period, and applicable fees shall be detailed in the loan offer provided to the Borrower via the App before disbursement.

b) As per the Microfinance Act, 2006 the loan repayment must be made strictly in accordance with the agreed schedule. Any modifications shall be at the sole discretion of the Lender.

c) The Lender retains the sole discretionary right to determine loan approval or rejection without providing any further explanation to the applicant.

5. INTEREST RATES AND FEES

a) As per the Central Bank of Kenya Act, Cap 491, the interest rates and fees applicable to the loan are clearly stated in the App and will be included in the loan offer provided to the Borrower.

b) The Lender reserves the right to charge processing fees, administrative fees, late payment fees, and any other applicable charges.

c) The maximum interest rate may vary over time due to fluctuations in the Central Bank of Kenya’s interest rate.

6. FRAUDULENT APPLICATIONS AND MISREPRESENTATION

a) If a Borrower provides false information, forged documents, or engages in fraudulent activities, As per the Penal Code, Cap 63, Laws of Kenya, the Lender reserves the right to:

  • Cancel the loan agreement immediately.

  • Report the Borrower to relevant authorities for criminal prosecution.

  • Recover all disbursed funds and applicable penalties immediately.

  • Blacklist the Borrower from any future financial services.

  • Take civil and/or criminal action against the Borrower.

  • Freeze any funds held by the Borrower in their account with Blipply Ltd until the matter is resolved.

7. DATA PRIVACY AND SHARING OF INFORMATION

a) By applying for a loan, the Borrower consents, As per the Data Protection Act, 2019, to the collection, storage, and sharing of their data with:

  • Regulatory bodies, financial institutions, and CRBs.

  • Debt recovery agencies and law enforcement (if necessary).

  • Any third parties as required by Kenyan law.

b) The Lender holds a valid Data Protection License issued by the Kenyan Government and complies with the Data Protection Act (2019).

c) The Borrower has the right to:

  • Access, correct, or delete their data.

  • Withdraw consent for data processing, subject to legal and contractual obligations.

8. LOCATION TRACKING OBLIGATION

a) The Borrower is obliged to allow the Lender to track their location for fraud prevention and loan management.

b) The Borrower must ensure that location tracking is enabled during the loan application process and throughout the loan repayment period.

c) Failure to maintain location tracking as required shall constitute a breach of this Agreement and may result in:

  • Penalties.

  • Loan recall.

  • Legal action.

  • Freezing of any funds held by the Borrower in their account with Blipply Ltd until the matter is resolved.

9. MODIFICATION OF LOAN TERMS

a) The Lender reserves the right to modify interest rates, fees, and loan terms at its discretion due to changes in financial markets, regulatory updates, or risk assessment.

b) The Borrower will be notified in advance of any changes, and continued use of the loan facility shall constitute acceptance of the new terms.

10. LATE PAYMENTS AND NON-REPAYMENT

a) As per the Credit Reference Bureau Regulations, 2020, failure to pay any instalment by the due date shall result in the following penalties:

  • Late payment fees as detailed in the loan offer.

  • Increased interest rates on overdue amounts.

  • Negative reporting to Credit Reference Bureaus (CRBs), and other relevant parties, affecting the Borrower’s credit score.

b) Repeated late payments may result in additional penalties and escalated debt recovery measures.

11. COLLECTION AGENCY AND LEGAL COSTS

a) The Lender reserves the right, As per the Fair Administrative Action Act, 2015, to assign or transfer debt collection to a third-party agency without prior consent from the Borrower.

b) The Borrower shall be liable for all legal costs incurred in the recovery of outstanding debt, including collection agency fees, legal fees, and court costs.

c) The Lender may report unpaid loans as criminal activity, leading to prosecution and potential penalties under Kenyan law.

12. BLACKLISTING AND CREDIT RESTRICTIONS

a) The Borrower may be blacklisted internally and externally beyond CRBs, including financial fraud registries and shared financial institution databases.

b) A blacklisted Borrower may be restricted from obtaining financial services across institutions.

13. FORCE MAJEURE

As per the Contract Act, Cap 23, Laws of Kenya, the Lender shall not be liable for any failure or delay in performing its obligations due to circumstances beyond its reasonable control, including but not limited to acts of God, natural disasters, war, strikes, government regulations, and failures of telecommunications or banking systems.

14. COOLING-OFF PERIOD

The Borrower has a 3-day cooling-off period from the date of loan disbursement to cancel the loan agreement without penalty, provided that no funds have been withdrawn. To exercise this right, the Borrower must notify the Lender in writing via the App or email.

15. DISPUTE RESOLUTION

a) Any disputes arising from this Agreement shall be resolved through an arbitrator as per the Arbitration Act (Cap 49, Laws of Kenya).

b) Each party shall be responsible for covering its own legal costs incurred in any dispute resolution proceedings.

16. GOVERNING LAW AND JURISDICTION

This Agreement is governed by the laws of Kenya, as per the Contract Act, Cap 23, Laws of Kenya

17. ACCEPTANCE AND BINDING AGREEMENT

By applying for a loan via the App, the Borrower acknowledges that they have read, understood, and agreed to these terms. This Agreement constitutes a legally binding contract enforceable under Kenyan law.