LOAN AGREEMENT

SOKOHELA LIMITED a limited liability company registered  as PVT-9XUV6KY under the Companies Act, 2015 and of Post Office Box Number 34 – 00502, Nairobi hereinafter referred to as “the Lender  (which expression shall except where the context suggest, mean and include successors and assigns) hereby offers [CLIENT_NAME] ( [CLIENT_NATIONAL_ID_NO] ) and of Home Address [CLIENT_ADDRESS] hereinafter referred to as “the Borrower” which expression shall except where the context otherwise suggests, mean and include his heirs, assigns, agents and representatives) a loan of (Kshs. [LOAN_PRINCIPAL]/=).

1. Loan amount and interest

Upon the requisite specification as outlined in this Loan Agreement being met SokoHela undertakes to loan (Kshs. [LOAN_PRINCIPAL]) to the borrower and the borrower promises to repay this principal amount to SokoHela with interest payable on the unpaid principal at the rate of [LOAN_INTEREST_PERCENTAGE] for [LOAN_INTEREST_TITLE], payable by [LOAN_DUE_DATE]  via Paybill No. 768106 Account Number: Name

2. Payments

The loan will be paid in [LOAN_NO_OF_INSTALLMENTS] installments, Ksh [LOAN_AMOUNT_PER_INSTALLMENT] every  [LOAN_INSTALLMENT_TITLE], starting on [LOAN_FIRST_INSTALLMENT] and to be cleared on [LOAN_DUE_DATE] amounting to ([LOAN_TOTAL]) via Paybill No. 768106 Account Number: Name-

3. Default

Notwithstanding anything contrary in this agreement, if the borrower defaults in the performance of any obligation under this agreement then SokoHela may declare the principal amount owing and interest due under this agreement at that time to be immediately due and payable. Any default in payment will attract a penalty interest of 7% on principal and interest due.

The following instances shall be construed by the Lender as incidences of default.

• The Borrower fail to pay any sum due from there under this agreement at time; or
• The Borrower is in breach of any of the provisions of this Loan Agreement;
• The Borrower put in a request for suspension of payments;

4. Borrower’s Obligations

(i)         To sign the Loan agreement in accordance with the terms set out herein without any alteration or changes whatsoever unless the said alterations are done in accordance with clause 8 set out herein.

(ii)    The Borrower is to pay the agreed transactional costs before draw down&

(ii)    The Borrower may be required to avail to the Lender the following documents

• Copy of National ID
• Passport sized photo.
• Certified copies of latest (3) months bank statements or M-pesa statements when need be depending on loan ticket size.
• Copy of ID and Passport photo of guarantor.
• Business premise photo

5. Governing law

This agreement will be construed in accordance with and governed by the laws of Kenya.

6. Costs

All costs, expenses and expenditures including without limitation, the complete legal costs incurred by enforcing this agreement as a result of any default by the borrower will be added to the principal then outstanding and will immediately be paid by the borrower.

7. Binding agreement

This agreement will pass to the benefit of and be binding upon the respective heirs, executors, administrators, successors, guarantors’ and permitted assigns of the borrower and lender. The borrower waives presentment for payment, notice of non-payment, protest, and notice of protest. 

8. Amendments

This agreement may only be amended or modified by a written instrument executed by both the borrower and the lender.

9. Severability

The clauses and paragraphs in this agreement are intended to be read and construed independently of each other. If any term, covenant, condition or provision of this agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, it is the parties’ intent that such provision be reduced in scope by the court only to the extent deemed necessary by that court to render the provision reasonable and enforceable and the remainder of the provisions of this agreement will in no way be affected, impaired or invalidated as a result.

10. Entire agreement

This agreement constitutes the entire agreement between the parties and there are no further items, provisions, either oral or otherwise shall be deemed to alter the effect of this Agreement.

IN WITNESS WHEREOF, the parties have duly affixed their signatures under hand and seal on this date ………………………………………

SOKOHELA LIMITED

[Signed]

In the presence of …………………………………………………

Borrower: NAME: ………………………………………………………….

     ID NO: ………………….....................................................

    [Signed]……………………………………………………… ..

Guarantor: NAME ………………………………………………………….

     ID NO:  ………………….....................................................

     [Signed]………………………………………………………..

Witness [Signed]………………………………………………………..