TERMS AND CONDITIONS

TERMS AND CONDITIONS

Application Process for a Loan at

Avok Financial Services (Pty) Ltd

By entering this Application Process at the Company, you agree that you are applying for a loan and accept these Terms and conditions and that you will abide by them. If you disagree with these Terms & Conditions, please refrain from continuing the application process.

The following are the headings which will be discussed in this document:

Credit Record Consent
Credit Granting Policy
POPIA Disclaimer
Language Policy
General Terms and Conditions

1. CREDIT RECORD CONSENT
By signing this Credit Record Consent, you agree to the Company:

1. Receiving, compiling and retaining any confidential credit information about you for purposes of assisting us to:

perform our statutory assessment of your creditworthiness, decide whether to grant credit to you, and

monitor your credit profile, should we grant you credit;

1. Filing your consumer credit information with any other credit provider and a registered credit bureau, including Xpert Decision Systems (XDS) Pty Ltd, Compuscan Holdings (Pty) Ltd, Experian Limited, TransUnion ITC, the National Loans Register as well as SACRRA.
2. Sharing your consumer credit information with any tracing agent or collection company if you default on your credit repayment obligations to the Company.

You further hereby consent to a Credit Bureau:

Providing the Company with a credit report which the Company may rely on:

to assess your creditworthiness and

to base their decision on whether to grant credit to you;

Accepting the filing of your consumer credit information from any credit provider; Issuing a report to any person who requires it for a lawful purpose

Your agreement to these terms and conditions signifies your consent as aforesaid. You agree to hold the Company and any credit bureau or other credit provider to whom the Company may provide your consumer credit information in terms of your aforesaid consent harmless against any and

all liability, loss, claim, demand, cost, fees and expenses arising out of or from or in connection with your aforesaid consent.

2. CREDIT GRANTING POLICY

This policy governs the in-branch credit application process for the Company.

Steps in The Application Process:

After signing these Terms and Conditions and providing the Company with your ID number, the following steps will be followed:

Department of Home Affairs (DHA) Check: The system will pull your DHA information, and we will be able to verify your identity and personal data stored at the DHA.

FIC Watch Lists: The system will search different watch lists compulsory by the FIC to see if you can apply for a loan with us.

Credit Report: The system will automatically draw a Credit Report, which we will use to confirm your previous and current addresses, employers, and contact numbers.

Confirmation of Telephone Number: We will need to confirm your telephone number with you with an OTP.

Proof of Income: You must provide proof of primary and secondary income (if applicable). We accept a pay slip no older than three months for employed applicants and a Bank Statement with the income showing for three consecutive months for pensioners.

Identification: We will upload a copy of your ID to our system and require a photo to add to your profile.

Bank Statement: We will require a recent bank statement to continue with your application. For new clients or existing clients applying for a new term loan, you must provide a three-month statement, with your income paid into your account regularly. A one-month statement will be satisfactory for existing

clients applying for a one-month loan. The bank statement can be acquired in three ways:

USSD: We could send you a USSD prompt where you give your bank permission to send your bank statement directly to our system. For this to be possible, your current telephone must be registered at your bank.

Internet Banking: We could send you a prompt to your Internet Banking where you give your bank permission to send your bank statement directly to our system.

Physical: If you have a physical bank statement, we will need to scan it and upload it to our system.

Pre-Score: You must provide your “estimated money left over” – meaning your disposable income after all obligations have been paid. Our system will then create a pre-score for you based on all the information we have received up until now. This score will give you a maximum loan amount and maximum term

allowed, but this can change if your actual “money left over” is less than your estimation.

Choice of Credit Life Policy: On any of our loans, it is compulsory to have a Credit Life Policy in place by you. We do have an option for you to take out a Credit Life Policy from our third-party Insurance Provider, Aspis Insurance. In the event where you have another policy which you want to use for this loan,

you are allowed to do so. You will be given the choice during the application process, and we will then choose the applicable loan product on the system, without Credit Life added. We will, however, need proof that we will be the beneficiary of your policy before we can proceed with the loan.

Loan Details: You must provide us with your loan purpose, loan amount, total amount of pay dates, and the first instalment date. The system will then calculate the instalments, and you will have the opportunity to say if these will be affordable to you or not. You and the Loan Officer can negotiate within the max

loan and max term amounts until you are happy with the instalment amount.

Affordability Check / Budget: According to the National Credit Act, we need to ensure you can afford the loan instalment you are applying for. We will take the following information into consideration to perform an Affordability Check in line with the Affordability Guidelines provided by the National Credit Regulator:

All information on your Pay Slip, Bank Statement and Credit Record will be used to fill in the following: Gross Income and Average Income (if necessary)

Statutory Deductions Debt Expenses

Household Expenses

The system will then calculate:

The Minimum Necessary Expense according to NCR Guidelines. Minimum Necessary Expense

Household Expenses

Unforeseen = 3% of Gross Salary

Money Left Over After New Instalment > R200 per month

The Debt Ratio after the new Loan should be less than 65%

Final Score: After the actual “Money Left Over” has been calculated, the final score can be calculated. From here, one of two outcomes is possible:

The score allows for the applied amount and term: The amount and term applied fall within the maximum amount and maximum term allowed according to our scoring brackets. The Application will continue to the next step.

The score does not allow for the applied amount or term: The amount or term applied may be more than the score allows. You can choose to adjust your loan with what the score allows, or you can suspend the application process

Small Agreement Quotation: You will now receive the formal quotation for your loan, which you can accept or decline.

Personal Information: If you accept the quotation as described above, you will now need to provide us with extra personal information like your title, nickname, relationship status, number of children, number of other dependants, race and home language.

Marketing Information: We will ask you which radio station you listen to and how you have heard about us.

GPS Coordinates: We will ask you to confirm your address on a map and to give us a description of where your home is.

Work Confirmation: We must confirm your employment directly with your employer – on a landline number. You must be employed permanently for at least three months before being considered for a loan.

Contacts: We will need at least three contact persons' names, surnames, mobile numbers and addresses.

Signature of Contracts:> The digital signing of the following contracts will now be done:

NCR Loan Contract

Credit Protection Insurance Contract (if opted in)

DebiCheck:> Now, you will give our third-party service provider permission to deduct our instalments from your bank account. This will be either utilising a TT1 or TT3.

Identity Verification:> With each loan, we will verify that it is you who is taking out the loan in your name, and not somebody else.

This will be done with Facial Recognition, in one or two ways:

DHA Photo: If you have a photo of yourself registered with DHA, that photo will be used as the “verification photo” against the face in front of the camera at the time of payout.

Registered Selfie: If you do not have a photo of yourself with DHA, a new selfie of you will be taken the first time you apply for a loan. This selfie will be approved by our Head Office before it will become your “verification photo”.

Pay-out: You will now choose your pay-out option (FEZA CARD / Bank Account / Cash) and provide the information regarding your pay-out choice if needed. If you choose the FEZA Card option, it is essential to note the following:

You are responsible for supplying us with your correct mobile phone number, as you will receive the details on how to draw the money on your mobile phone.

Someone else might draw your money if you do not supply us with your correct mobile number.

We will not be held responsible for any loss if you provide us with the incorrect number, use someone else’s number, or allow someone else to access your mobile phone with confidential information.

Deductible Amounts: you hereby expressly give us permission to deduct the following amounts from the new loan amount should you wish to opt in for any of these options:

Settlement Amount of a previous loan which you want to settle, but you don’t have the cash flow to do it immediately; New Feza Card or PIN;

A Funeral Benefit Policy from our third-party Insurance Provider, Aspis Insurance.

Finish

Immediate Decline Reasons:

Within our Credit Granting Policy, you can be immediately declined for one or more of the following reasons: You are not a South African Citizen;

You are self-employed;

You have not been permanently employed for at least three months;

You do not receive your income in a bank account;

Your Employer is identified as too high risk for us;

You do not have the required information or documentation with you;

We cannot verify your identity at the Department of Home Affairs;

We suspect fraud in any way

Your Credit Record shows:

You are under Administration or Insolvent;

You have a Debt Review/Counselling Application in your name; You are under Debt Review/Counselling;

You have one or more judgements against your name; You have one or more adverse accounts;

You are noted as High Risk.

Your Bank Statement shows:

Inactive or Closed Status;

Last Deposit Date more than a month ago;

Disputes on your debit orders;

One or more insufficient funds

Your Affordability Check does not comply with all built-in rules;

3. POPIA

The Protection of Personal Information Act, Act No. 4 of 2013 (POPIA), was enacted on 1 July 2021. This Act aims to protect an individual’s personal information in a world where access to information has become increasingly prevalent, and it includes a right to protection against the unlawful collection, retention,

dissemination and use of personal information.

The Company is committed to protecting your privacy and the confidentiality of any personal information you provide us. Please see our complete Privacy Policy on our website at: https://royalfinance.co.za/legalstuff

We will always apply the necessary due care and diligence to secure the content of our website, internal management systems or any other system containing the personal information provided by our clients, and we undertake to regularly review security controls and related processes to ensure that your personal

information remains secure.

By signing this document below, you are giving consent to the Company to:

Collect, utilise, store, lawfully disclose and ultimately, in the end, destroy your personal information.

Approach your employer to verify your employment status. You are, therefore, giving your employer permission to disclose your current employment status (Full-time permanent employee, Contract worker, Retrenched, Services terminated, etc.) to us. This permission will be valid until all your loans are fully paid.

4. LANGUAGE POLICY

The company’s business language is English, and all customers will be provided with documentation, per standard, in English.

PRE-AGREEMENT STATEMENT AND QUOTATION

The Pre-agreement Statement and Quotation will be translated and will be made available on request as supplemental in Tswana, Sotho, Zulu, Afrikaans, Xhosa, or Ndebele. Customers will, in all cases, be provided with English documentation.

CREDIT AGREEMENT

The credit agreement will be available in English for final signature. A translated version of the document will be made available on request by the customer for perusal of all information in Tswana, Sotho, Zulu, Afrikaans, Xhosa, or Ndebele.

ENFORCEMENT NOTICES

Enforcement notices will be available in English as the official legislative document with either the Tswana, Sotho, Zulu, Afrikaans, Xhosa, or Ndebele translations on the back of the enforcement notice. These will then be submitted to the legal process.

BRANCH STAFF ASSISTANCE

In all branches, the staff effectively communicate in English. We have diverse staff nationwide who can communicate in Tswana, Sotho, Zulu, Afrikaans, Xhosa, or Ndebele. If there isn’t someone in the branch who can speak the required language, we have the capability to arrange for a telephonic translator in Tswana,

Sotho, Zulu, Afrikaans, Xhosa, or Ndebele.

5. ADMINISTRATION / DEBT RESTRUCTURING

In the event of you being placed under Administration Order or Debt Restructuring/Review that is instituted by yourself within 60 days after signing of this agreement, you hereby give consent that all payments due to the Company after date of granting of the Administration Order or Debt Review, shall fall within the

ambit of Section 74A(2)(e)(ii) of the Magistrates court Act and therefore excluded from the administration in terms of Section 74C (2) of the said Act. Therefore, you acknowledge that, notwithstanding you being placed under administration, the Company shall be entitled to recover all future payments by means of legal

action and that an administration order shall have no effect on the right to recovery thereof by the Company.

Should you fail to inform the Company of any existing Debt Restructuring process pending or in place at the time of the granting of any loan, you agree that the specific loan shall not fall within the ambit of such application.

6. SIGNATURE APPLICATION DISCLAIMER

To benefit our clients and respect their time, we are working to expedite the loan process by reducing the instances where a client needs to sign. During the Loan Application Process, the client will only need to sign 3> (three) times, as outlined below:

Signature 1: Will be used to sign these Terms and Conditions

Signature 2: Will be used to sign the Affordability Check and Quotation

Signature 3: Will be used to sign the NCR Contract, Credit Life Contract (if applicable), Transaction Summary and Client Application form.

By signing these three times at the designated locations, the client acknowledges full consent to the terms outlined in the loan agreement and accompanying documents.

The client expresses their intention to proceed with the loan and its terms and agrees that the one signature per category represents their signature on all the documents in that category.

The client understands and consents that his/her signature will not be required on every document.

7. GENERAL

You hereby confirm the following:

That all information given to the Company is true and correct. You accept that if any information is not true and correct, any agreement entered between you and the Company will be declared invalid immediately. Any outstanding amount of money owed by you will be immediately payable. You will also be held

responsible for all costs incurred in recovering the funds.

You grant permission to receive SMS communications and any other marketing article and note that you can cancel this in writing anytime.

By agreeing to this agreement, you hereby declare that you have read through and agree with each section of these Terms and Conditions.