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Civil Servants Loans
Introduction About the Product
The Civil Servant Loan is a facility which has been specially developed to meet the financial needs of all civil servants.
All Civil Servant Loans are subjected to a loan appraisal process. Once a loan has been approved the loan will be disbursed within 24 hours, either Via Mpesa or to a bank account.
Who Qualifies
The Civil Servant Loan facility is suitable for all civil servants. This includes; TSC members,national government employees and County Government employees.
Loan Application Requirements
- Clear copy of Original I.D
- One colour passport size photo
- Original current payslip
- Copies of previous two months payslips
- Bank mini-Statement
Loan Term
Repayment period ranges from 3 months to 36 months
Loan Amount Range
Minimum Loan Amount: Kshs. 5,000
Maximum Loan Amount: Kshs. 500,000
Application Procedure
Before starting you will need to consider if you meet the above eligibility requirements. To apply Dial *483*20# or Call us and we shall walk with you through the process.
Terms and conditions
LOAN AGREEMENT TERMS AND CONDITIONS
1. The Loan
1.1. At the Borrower's request, Sterling agrees to make available to the Borrower the loan amount shown in the Schedule on the terms and conditions
set out in this agreement.
1.2. The details of the loan are as shown over leaf.
1.3. The Borrower has the right to repay the principal amount of the loan within three business days from the date of disbursement without incurring
any costs. This repayment must be done at Sterling's bank account, in cleared funds.
1.4. By signing this document or by imprinting his or her left thumb print on this document, the Borrower acknowledges and accepts the terms and
conditions upon which payment of the loan amount shall be made by Sterling.
2. Interest
2.1. The monthly interest charged on your loan shall be as per the rate schedule in 2.2 for Civil Servant Loans and rate schedule 2.3 for Asset Finance
below. As a benefit for longer term borrowing, Sterling shall discount the monthly interest rate as set out below.
These discount rates will only be applicable in the event of the borrower effecting payments as scheduled and over the term agreed with Sterling.
Should you wish to prepay the loan, the discount will be forfeited and the interest rate applied shall be in line with the schedules 2.2 and 2.3
below.
2.2. The discounted rates per month applicable on the amount borrowed on Civil Servant Loans are as follows:-
1-3 months - [10%], 6 - months [8.5%], 12 months - [7.5%], 18 months - [6%], 24 months - [5%], 36 months - [4.5%], 48 months - [4%], 60 months - [3.5%],
72 months - [3.25%], 84 months - [2.5%], 96 - 120 months [2.08%]
2.3. The discounted rates per month applicable on the amount borrowed on Asset Finance are as follows:
3 months - [10%], 6 months - [9%], 12 months - [7%]
2.4. Interest shall be calculated monthly. The interest shall apply to the initial capital sum at a flat rate per month according to the terms referred
to in 2.2 and 2.3 above. If the borrower fails to pay any amount which the borrower owes Sterling in terms of this agreement on the due date of such
amount, Sterling shall be entitled to charge interest on the amount the borrower has not paid or delayed to pay at the same rate as that stated in
Clause 2.2 above.
2.5. In the event of early settlement, loan administration fees will be charged in full.
2.6. Due to market conditions, Sterling may increase the interest charge by giving you one calendar months' notice in advance
3. Payment
3.1. The Borrower must repay the loan in the monthly repayments as agreed.
3.2. The Borrower agrees that Sterling shall have the right to deduct the monthly installments in full as set out in the schedule below directly from the
Borrower's salary as deductions from his or her employers payroll.
3.3. The Borrower hereby gives Sterling the right to deduct monies owing to it from any unpaid wages or any other remuneration credits payable to the
Borrower if the Borrower leaves the service of his/her employer for any reason before the total amount repayable under this agreement has been paid.
3.4. In the event of the Borrower's death or permanent disability, the Borrower or his estate will not be liable for the repayment of any outstanding
repayments.
3.5. No cash should be handed to an employee. Sterling shall not take ANY responsibility for money paid to any of its employees. All cash deposits
should be made to our Bank accounts.
3.6. If payment is made by cheque or banker's cheque or electronic funds transfer, the payment is deemed to have been received on the date funds are
cleared, and not on the date the cheque is deposited or electronic funds transfer initiated.
4. Early Settlement
4.1. The discounted rates per month applicable on the amount borrowed on Civil Servant Loans are as follows: -
1-3 months – [20%], 4-12 months – [15%], 13-24 months – [10%], 25-36 months – [7.5%], 37-48 months – [6.5%], 49-60 months – [6%], 61-72 months – [5.5%],
73-96 months - [5%]
4.2. The discounted rates per month applicable on the amount borrowed on Asset Finance are as follows: -
1-3 months - [20%], 4-6 months - [15%], 7-12 months - [10%]
4.3 An early redemption fee calculated on the principal at a rate of 30%.
5. Costs and Charges
The Borrower agrees that, if Sterling has to use lawyers because the Borrower has not carried out any part of this agreement, the Borrower will
have to pay Sterling all the costs due to Sterling's lawyers.
6. Insurance
As a responsible lender, Sterling has the right to insure the loan in case of death or disability on the part of the Borrower.
7. Breach
7.1. In the event of
(i) Any failure by the Borrower to pay any amount which is owing to this agreement in full and on the dates he or she has to, or
(ii) Any other breach by the Borrower of the terms of this agreement;
(iii) Any claim that the Borrower has failed to carry out his/her duties under this agreement; then the full balance due under this agreement together
with any penalty interest and all other charges and expenses owing to Sterling by the Borrower shall become immediately due and payable to Sterling
and without giving notice to the Borrower or affecting any of Sterling's rights under this agreement. Sterling shall be entitled to terminate
this agreement and claim/or recover from the Borrower any damages/losses it, may have suffered as a consequence.
7.2. In the event of a default by the Borrower in making payment, Sterling shall have the right to use any money paid by the borrower to first pay legal
and other costs, then interest and then the actual loan amount.
7.3. Sterling reserves the right to engage third party debt collectors to recover any total outstanding balance at the debtor's cost.
7.4. Please note that the responsibility to ensure timely payment of the installments lies with the borrower, the company reserves the rights to charge
and capitalize interest on late payments and to recover it either during or after the contractual term of the loan.
7.5. The amount owing by the Borrower to Sterling at any time may be shown by a certificate or statement in which a Sterling Officer has worked out
and has stated as amount owing. The certificate or statement will be a proof of the amount owed to Sterling by the borrower and will be able to
be used in any legal proceeding and will be accepted by the court on its own as correct unless the Borrower proves that it is incorrect.
8. Asset Financing
8.1. In the event that the borrower has applied for a loan to finance the purchase of an Asset, Sterling shall require the Borrower to maintain a
comprehensive insurance policy cover in respect of the Asset during the term of the loan.
8.2. The Borrower undertakes additionally that he/she shall be solely responsible for costs related to registration of any Asset in their favour,
its insurance cover and any legal fees.
8.3. The Borrower consents to the delivery of the following documents to Sterling upon approval of the loan and delivery of the Asset:
8.3.1. The deed of title or logbook in respect of the Asset;
8.3.2. The transfer forms in respect of the Asset
8.3.3. The comprehensive insurance policy documents in respect of the Asset.
The Borrower acknowledges that Sterling shall be entitled to custody of the said documents pending settlement of the loan.
8.4. The Borrower shall give notification to both Sterling and the Supplier of the Asset of any discrepancy with regard to the Asset(s) within 15 days
of delivery referring to the invoice number and date of purchase.
8.5. In the event of default by the Borrower, Sterling will be entitled to reposes and dispose of the Asset being financed in such manner as it may in
its sole discretion determine to be in its interest and the Borrower acknowledges that he/she will be obliged to cooperate accordingly.
All Assets that are to be delivered to a Sterling Branch will attract a minimum charge of Ksh 300.00 subject to change.
9. General
9.1. This agreement is the whole agreement between Sterling and the Borrower. It cannot be changed unless the change is put in writing and signed by
both Sterling and the Borrower.
9.2. The Borrower acknowledges that he or she fully understands the provisions of this Agreement and has entered into it voluntarily for his or her
own benefit.
9.3. Sterling will give at the Borrowers request a statement setting out all deductions from his/her salary, outstanding balance and any amount
payable in arrears.
9.4. The Borrower authorizes Sterling to access any information available to assess his or her application, and also gives Sterling permission to
register details of the conduct of the Borrower's account with any credit bureau, and the Borrower waives any claim he or she may have against
Sterling in respect of such disclosure.
9.5. By signing this contract, you authorize Sterling to access your credit history from a registered credit reference bureau.