Personal loan
Terms and conditions
GENERAL TERMS AND CONDITIONS APPLICABLE TO CREDIT PRODUCTS
G1. INTERPRETATION
G1.1 In this agreement clause headings are for convenience only and should not be used to interpret the agreement.
G1.2 Unless the context shows otherwise, the following expressions have the meanings assigned to them below and similar expressions will mean the same:
G1.2.1 Agreement - the respective credit product agreement that you enter into, which includes the application, quotation, terms and conditions and annexes to the agreement. The agreement includes the general terms and conditions applicable to credit products.
G1.2.2 Application - the respective application for a credit product.
G1.2.3 Business day - a day other than a Saturday or Sunday or a day that is proclaimed a public holiday in South Africa.
G1.2.4 Credit - a deferral of payment of money that you owe us or a promise to defer the payment, or a promise by us to advance or pay money to you or on your behalf.
G1.2.5 Credit product - a product governed by the NCA, which includes a personal loan, a credit card facility, an overdraft facility, a vehicle finance loan or any other credit products that we offer.
G1.2.6 Interest rate - the yearly interest rate as specified in the respective quotation, being a variable or fixed interest rate. Variable interest rates may change.
G1.2.7 NCA - the National Credit Act, 34 of 2005.
G1.2.8 Prime rate - the prime interest rate that we charge.
G1.2.9 Prime rate factor - the percentage above or below the prime rate as stipulated in the quotation.
G1.2.10 Principal debt - all amounts that you owe us in terms of the respective agreement.
G1.2.11 Product terms and conditions - the terms and conditions that apply to the specific product that you have chosen.
G1.2.12 Quotation(s) - the most recent written quotation(s) that we gave you for the respective credit product(s).
G1.2.13 Repo rate - the repurchase rate published by the South African Reserve Bank.
G1.2.14 Security - the security, if any, you gave us or that was given to us on your behalf in terms of the agreement.
G1.2.15 We/us/our/Nedbank - Nedbank Limited (registration number 1951/000009/06) (and its successors in title and assigns), whose contact details and NCR registration number are stipulated in the quotation.
G1.2.16 You/your - the client who applies for and enters into the agreement(s).
G1.3 Any number of days prescribed will be determined by excluding the first and including the last day, or, if the last day falls on a day that is not a business day, the next business day
G2. CONDITION PRECEDENT
The agreement is conditional on our having performed a successful credit assessment in line with section 81 of the NCA.
G3. INTEREST
G3.1 We will charge interest on the outstanding balance and all amounts that you owe use or that we man claim in terms of the respective agreements at the rates stipulated in the quotation(s).
G3.2 We will notify you in writing within 30 days if the prime rate changes and stipulate the effective date.
G3.3 Interest is calculated daily, on the basis of a 365-day year, from the date that credit is granted and debited monthly in arrears.
G3.4 We will charge interest for the period between the date that credit is granted to you and your first instalment due date, which is payable monthly in arrears. If you do not pay your instalments (default), we will charge further interest on overdue amounts (including fees, costs and charges) at the same rate as the interest rate that applies to the respective agreement, calculated and capitalised monthly.
G4. FEES, COSTS AND CHARGES
G4.1 You must pay all fees, costs and charges specified in the quotation. We may change any fees, costs or charges, but it will not exceed the prescribed NCA amount and we will give you five business days' notice.
G4.2 We will charge default administration charges for each default letter and the costs incurred to collect the debt if you default on any obligation in terms of the respective agreement.
G4.3 You will be liable for all costs that incur due to your default, such as insurance premiums, legal costs charged on an attorney and client scale, counsel fees, tracing fees and collection charges. You agree to secure these costs with the security (if applicable) and to pay the costs on demand.
G4.4 You agree that payment or reimbursement of any costs, fees, expenses or payouts includes the payment of value-added tax (VAT), if applicable
.
G5. PREPAYMENT, SETTLEMENT AND ALLOCATION OF PAYMENTS
You can make payments in advance or settle the agreement(s) at any time. Payments will be allocated to unpaid interest, then to unpaid fees and then to reducing the principal debt. The settlement amount is the outstanding capital plus unpaid fees and interest that you owe us or that we may claim up to the settlement date. If you want to settle a large agreement as defined in the NCA, you must give us three months' notice in advance. If you do not give us notice, we will charge an early-termination fee.
G6. PROCESS ON DEFAULT
G6.1 If you are in default, we will notify you in writing and propose that you refer the agreement to a debt counsellor, an alternative dispute resolution agent, the consumer court or the ombudsman to resolve any disputes or develop and agree on a plan to remedy the default.
G6.2 If the NCA applies to your agreement, you may resolve a complaint through alternative dispute resolution, file a complaint with the National Credit Regulator, make an application to the tribunal, or apply to a debt counsellor for assessment and debt review.
G6.3 If you applied for debt review under section 86 of the NCA and the review is not finalised within 60 business days, we may send a notice terminating the debt review.
G6.4 We can approach the court for an order enforcing the agreement if you have been in default for at least 20 business days and at least 10 business days have passed since the default letter or notice was delivered (this 10-day period may run at the same time as the 20-day default period) and you have not responded to the default letter or have rejected our proposal.
G6.5 The nature and amount of your indebtedness, the interest rate as well as the terms and conditions will be determined and proved by a written certificate from any of our managers or accountants, whose position we do not need to prove. This certificate will, on the face of it, be binding on you as a liquid document. Unless you can prove that the amount in the certificate is incorrect, it is agreed that we may take any judgment or order based on the contents of the certificate.
G7. IMPLICATIONS OF DEFAULT
G7.1 If you are in default, you will pay default administration charges and collection costs.
G7.2 We have the right to terminate the agreement and/or claim the full outstanding balance, including interest and other amounts owing to us, which may, at our discretion, become due and payable immediately.
G7.3 If we take legal action due to your default, it could result in a court judgment, which may order the attachment of your salary or property and will result in a bad credit record.
G7.4 Whenever we take any legal steps against you, we have the right to use microfilm and digital copies of any relevant records.
G8. APPLICATION FOR DEBT REVIEW
G8.1 You may apply to a debt counsellor to be declared overindebted. You may not apply for debt counselling if we have started legal action.
G8.2 The debt counsellor will determine if you are overindebted and, if you requested a declaration of reckless credit, the debt counsellor will determine if any of the agreements are reckless.
G8.3 The debt counsellor may reject your application or may recommend that you and your credit providers consider and agree on a debt rearrangement plan. If the debt counsellor finds that you are overindebted, he may issue a proposal recommending that the magistrate's court make an appropriate order. If you and each credit provider accept the recommendation suggested by the debt counsellor, the order must be recorded in the form of an order and, if all parties consent, it may be filed as a consent order by the debt counsellor. If the debt counsellor rejects the proposal, you may, with permission from the magistrate's court, apply directly to the magistrate's court for an appropriate order.
G9. ADDRESS FOR NOTICES
G9.1 Your physical or email address you gave us in the application, , will be the address that we will use to deliver legal notices to you as your domicilium citandi et executandi for all purposes in connection with this agreement or any address most recently provided by us to Nedbank in writing, provided that we deliver a written notice of the new address by hand, registered mail or e-mail to Nedbank. Legal notices sent to us shall be dispatched to this address by either hand delivery or e-mail. Any notice sent by email or delivered by hand to the domicilium address shall be deemed to have been received by us on the day sent by email or on the day of delivery by hand.
G9.2 Either party may change their physical or email address by notifying the other party via email. The email address to which you may send a change of address notification can be obtained from a branch or our contact centre.
G9.3 A notice, order or other document that, in terms of the NCA, must be served on either party will have been properly served when it has been sent by email or delivered to that party or sent by registered mail to that party's last known address. If you have not informed us of a change of your email or physical address, we will continue to use the last address given, even though the information may be incorrect.
G9.4 You may send any legal notices to our domicilium citandi et executandi:
The General Manager
Nedbank Group Legal
Nedbank 135 Rivonia Campus, 135 Rivonia Road, Sandown, Sandton, 2196
G9.5 Any document received by a party will be adequate written notice or communication to that party, even though it may not have been sent to or delivered at the chosen address.
G10. GENERAL
G10.1 The agreement contains everything that has been agreed and any change must be signed by both parties, unless stipulated otherwise.
G10.2 If either party decides not to use a right in this agreement, it does not mean that they have given up (waived) that right.
G10.3 If either party wish to waive a right in terms of this agreement, the waiver must be in writing.
G10.4 Every undertaking in this agreement is separate from the others. If any clause is found to be unlawful or unenforceable, the other clauses wills not be affected.
G10.5 If there is a conflict between the provisions of this agreement and any provision of the security, the provisions of the agreement will apply.
G10.6 We have the right to cede, assign and transfer any of our rights, obligations and security to a third party, which includes the right to delegate any of our obligations or security. If any cession, assignment or transfer constitutes a splitting of claims that requires your consent, you give your consent.
G10.7 You are not entitled to cede, assign or transfer any right, title or interest in and to this agreement.
G10.8 You must give us the information and documents that we request for yourself, your spouse, surety, guarantor or any other person who has provided security.
G10.9 The English version of this agreement will prevail if there is a conflict between versions.
G10.10 This product is not covered by the Corporation for Deposit Insurance.
G10.11 At our option, any claim may be recovered in any magistrate's court with jurisdiction, and you consent to that jurisdiction. We have the right to approach a higher court.
TERMS AND CONDITIONS APPLICABLE TO A PERSONAL LOAN
L1 INTERPRETATION
In this agreement clause headings are for convenience only and should not be used to interpret the agreement. Unless the context shows otherwise, the following expression have the meaning assigned to it below and similar expressions will mean the same:
L1.1 Loan - the instalment credit offered to you in the form of a personal loan.
L2 DISBURSEMENT OF THE LOAN
An agreement will come into effect after a successful credit assessment and if you have given us an authenticated collection mandate where applicable. If we approve a loan for a lesser amount than the amount you applied for, the information in the most recent quotation will apply to the loan and not the information disclosed in the earlier quotation. If you apply for a further loan, we have the right to settle your existing personal loan from the proceeds of the new loan. Depending on the type of loan you qualified for, the loan amount or the lesser amount will be paid to the merchant or into your nominated account. If you chose a split payment of the loan, a portion of the loan amount will be paid to the merchant and the remainder of the loan amount will be paid into your
nominated account.
L3 PAYMENT OF INSTALMENTS
You must repay the loan amount together with interest, fees and charges as stated in the quotation. The payment may, in our discretion, be made through the authenticated mandate collection system or any other collection system that we may choose to use. If you do not pay on the due date or if we pay any amount on your behalf, this will be included in the outstanding balance and we have the right to change the monthly payments to ensure that your loan is repaid in the same period as stated in the quotation. If your bank account is closed, inaccessible or does not have enough money to pay the debit order, we may apply the debit order to any bank account that you may have with us, subject to the provisions of the NCA. If you cancel your debit order authority, you must choose another payment method acceptable to us and notify us immediately. If you choose a payment method other than debit order, receipt of payment will be at your risk until we receive and process the payment.
L4 INSURANCE
L4.1 If you chose the policy that we arranged on your behalf, you acknowledge the following:
L4.1.1 We informed you of your right to waive the policy and substitute it with your own policy. You did not waive the policy that we proposed.
L4.1.2 If one of the insurable events under the policy occurs, we will receive the cover payable as the policy beneficiary.
L4.1.3 You irrevocably authorise Nedgroup Life to get from any person, doctor or institution (whom you authorise and ask to provide) any information that Nedgroup Life needs to consider any claim for any benefits payable in terms of the policy.
L4.1.4 The premium rates under the policy are not guaranteed and may be changed on the advice of an actuary of Nedgroup Life. In this case, you will receive one month's notice of any changes.
L4.1.5 You have chosen to have us act as your agent in arranging the insurance.
L4.1.6 You authorise us to pay the insurance premiums on your behalf and to recover these premiums as part of your monthly instalments.
L4.2 If you arranged your own insurance policy, you must give us documentary evidence that the policy is effective and that all premiums are up to date.
L4.3 If you do not comply with the insurance requirements, it will be a breach of this agreement.
L4.4 On your reaching your 65th birthday, only death claims will be allowed; loss-of-income and disability benefits will stop.
L5 INTEREST
L5.1 Your loan is subject to a fixed or variable interest rate as specified in the quotation.
L5.2 If your loan is subject to a variable interest rate, the interest rate will automatically increase or decrease in line with changes in the prime rate, plus or minus the prime rate factor specified in the quotation.