Y9 MICROFINANCE TANZANIA LIMITED
DEVICE FINANCING AGREEMENT
1. APPLICABILITY AND UNDERSTANDING.
1.1. Please read these terms and conditions and any schedule/annexure that shall form part of this Agreement.
1.2. This Agreement is available for Y9 Microfinance Tanzania Limited (“Y9 Microfinance”) Customers and becomes effective once a Customer opts in or registers for Y9 Microfinance Device Financing Facility (“Service”).
1.3. The Service is issued to any person based in the United Republic of Tanzania who is above the age of 18 years with a valid Tanzanian Citizen Identity Card.
1.4. Y9 Microfinance from time to time will verify your KYC documents (Identification documents) as required by the laws of Tanzania or amend this Agreement or review your scoring limit and have a right either to accept or reject your request for the Service.
2.1. “Agreement” means this Device Financing Facility Agreement;
2.2. “B2B Customer” means a customer that has given his/her employer consent to deduct from his/her monthly net salary the monthly instalment due to Y9 Microfinance and pay directly to Y9 Microfinance;
2.3. “B2C Customer” means a customer that has been accepted the Y9 Microfinance device financing facility and agrees to make daily repayments to Y9 Microfinance;
2.4. “B2G Customer” means a public sector employee who has consented to Y9 Microfinance to obtain his monthly repayments from the Accountant General of Tanzania;
2.5. “Customer” means any of the B2B, B2C or B2G Customer who has accessed a Product from Y9 Microfinance;
2.6. “Customer Due Diligence” means personal documentation supplied by the Customer to Y9 Microfinance to confirm the KYC regulatory requirements;
2.7. “Event of Default” means a situation whereby the Facility is due and unpaid for three (3) days or more or if a Customer commits any breach or fails to observe, keep or perform any of the terms and conditions of this Agreement;
2.8. “Facility” means the credit arrangement undertaken by Y9 Microfinance to enable Customers to own Smartphones under this Agreement;
2.9. “Fees” means the Fees applicable for the Services and include:-
2.9.1. Joining Fee. This fee is charged whenever a customer successfully request Y9 Microfinance Facility as shown in Schedule 1;
2.9.2. Daily Interest Rate;
2.9.3. Daily Service Fee; and
2.9.4. Any other charges as communicated by us from time to time in accordance with this Agreement and includes any charges, and applicable taxes thereof under the laws of Tanzania.
2.10. “Force Majeure” means anything outside the reasonable control of a Party including pandemic, an act of war or terrorism, the mobilization of armed forces, civil commotion or riot, natural disaster, industrial action or labor disturbance (excluding industrial action by employees of the Party or its subcontractors), currency restriction, embargo, or a failure of a public utility or telecommunications carrier or system failure/outage, interruption in the processing of the transaction, or delays resulting from circumstance beyond our reasonable control (include power failure and delays in communication with supplier point of sale, internet or other system failure).
2.11. “Know Your Customer” also known as KYC refers to the customer due diligence obligations imposed on Y9 Microfinance by the relevant laws and as may be prescribed or recommended by the Government, Tanzania Communications Regulatory Authority (TCRA) or Central Bank of Tanzania (BOT) from time to time;
2.12. “Notice” means a written SMS or notification sent by Y9 Microfinance to the Customer either directly to their mobile phone or through the App;
2.13. “Personal Information” shall have the same meaning as ascribed to it in the Data Protection Act of Tanzania.
2.14. “Products” means various types of Smartphone devices offered to Customers as part of this Agreement;
2.15. “Repayment Schedule” means the loan repayment schedule as contained in Schedule 1 of this Agreement for different types of Products that a Customer may be eligible for, and has exercised;
2.16. “Smartphone” means the device financed by Y9 Microfinance and handed over to the Customer;
2.17. “Service” means the business of affording Customers with a device financing facility pursuant to this Agreement; and
2.18. “Whitelisted” means a Customer who has been selected to be eligible for a Facility from Y9 Microfinance.
3. ACCEPTANCE OF TERMS AND CONDITIONS
3.1. Before opting-in or registering for the Service, Customers should carefully read and understand the terms and conditions as contained in this Agreement as they govern the access, use and operation of the Service. This Agreement is available on www.y9bank.com and on the Y9 App.
3.2. If a Customer does not agree with the terms and conditions, Customers should please click “Decline” on the Opt-in Function.
3.3. Customers will be deemed to have read, understood and accepted the terms and conditions of this Agreement upon clicking on the “Accept” option on the Opt-in Function that requests Customers to confirm that they have read, understood and agreed to abide by these terms and conditions; and or by using or continuing to use and requesting for the Service.
3.4. By registering for the Service, Customers agree to comply with and be bound by this Agreement as amended and revised from time to time and Customers affirm that these terms and conditions are without prejudice to any other rights that Y9 Microfinance may have in law or otherwise regarding Customers registration, access and use of the Service.
4. REGISTERING AND USING OUR SERVICE
4.1. The Facility covers the financing of Smartphones which Customers can obtain at any of the Y9 Centres, Y9 Partners (Mobile Operators) or Y9 Agents. Customers will be accorded a Smartphone and will be required to repay the Facility as prescribed in Schedule 1 of this Agreement.
4.2. Customers acknowledge that the Facility granted may result in a claim on the Customers’ mobile money account that may be used to recover against any outstanding liabilities due to Y9 Microfinance.
4.3. All the Fees due against the Facility are stated in Schedule 1 of this Agreement.
4.4. Upon acceptance of the Facility, Customers’ shall be liable to settle all the outstanding liabilities and claims due against Y9 Microfinance. Except as exercising its security right against the Smartphone as stated in Clause 11.2.3, Y9 Microfinance shall not accept the repossession of the Smartphone as settlement of the Customer’s outstanding liabilities upon the signing of this Agreement.
4.5. In case Y9 Microfinance accepts an initial deposit which is lesser than the prescribed sum as communicated from to time, the said sum shall not be refundable and shall be forfeited in the event that the Customers fails or decline to proceed to accept the Smartphone to be financed.
4.6. Any facility granted must be repaid within the tenure. Customer’s will not qualify for any new or additional Facility if any their current Facility remains outstanding or the Customer is in default.
4.7. Y9 Microfinance shall provide a statement of a Customers’ repayment history in the Y9 App that may be viewed at any time by the Customer.
5. LOAN TENURE
5.1. The Facility tenure shall depend on the type of Product offered to the Customer. The different loan tenures are indicated in Schedule 1 of this Agreement.
6. INSURANCE SCHEME
6.1. Y9 Microfinance may provide insurance scheme for the Customers’ Smartphone at its own discretion and expense. This insurance scheme can be exercised once by the Customer.
6.2. Y9 may charge a service fee for any Customer that shall request to exercise this insurance scheme option. The charge shall be levied against the customer depending on the date that the Customer was onboarded as a Y9 Customer.
6.3. The charge shall vary depending on the number of days that the Customer has been an active customer of Y9 Microfinance. Upon a Customer requesting for the insurance, Y9 shall advise the Customer the service fee due, if any.
7. TERMS OF PAYMENT
The Facility may be repaid through the following means depending on the nature of the Agreement that you enter with Y9 Microfinance: –
7.1. In case of a B2C Customer, the Customer shall make the payment to Y9 Microfinance wallet through direct transfer;
7.2. In case of a B2B customer, the Customer’s employer makes a deduction directly against the Customer’s monthly salary and transfers said deduction to Y9 Microfinance. In case a B2B Customer resigns or is terminated by his employer, Y9 Microfinance shall seek the loan repayments directly against the Customer’s terminal benefits from the Company. If the amount collected from the terminal benefits to cover the Customer’s outstanding liabilities against Y9 Microfinance is insufficient, the Customer hereby consents to make the payments of the outstanding balance on a daily basis as a normal B2C Customer;
7.3. In case of a B2G Customer, Y9 shall seek the payment directly from the Accountant General of the Ministry of Finance of Tanzania; and
7.4. Y9 Microfinance may with your consent which consent may not be unreasonably withheld seek to auto deduct the outstanding amount from your mobile money wallet.
8. CREDIT SCORING
8.1. As part of the customer due-diligence process, Y9 Microfinance will do a background credit check of the Customer’s past credit history and mobile money transactions. By consenting to enter this Agreement, the Customer consents to allow Y9 Microfinance to access his/her historical mobile data and credit history. Y9 Microfinance will use the information provided by the Customer or the Customer’s mobile network operator or any other credit reference bureau only for the purpose of scoring and ascertaining the Customer’s credit status.
8.2. This Agreement and the Customer’s adherence to the Loan Repayment obligations will affect the Customer’s ability to be eligible to any other additional facility from Y9 Microfinance.
9. USE OF INFORMATION.
9.1. Customers expressly consent to the collection and use of Personal Information as per the Data Protection Act of Tanzania.
9.2. Customers expressly consent to the sharing his/ her Personal Information with third parties such as credit reference bureaus but strictly limited to the following purposes: –
9.2.1. Local or international law enforcement or competent regulatory or government agency to help prevent, detect, investigate or prosecute criminal activities or fraud;
9.2.2. Credit Reference Bureau to conduct credit checks and to assess qualifying limits. In addition, the Customer agrees that the credit reference Bureau may share your credit details with third parties; and
9.2.3. Third parties assessing Y9 Microfinance technical infrastructure, marketing, analytics and web development (to the extent required), subject thereto that any such third parties will be bound by confidentiality provisions and will have to comply with any applicable data protection laws.
10. VARIATION, SUSPENSION AND TERMINATION.
10.1. Y9 Microfinance may at any time terminate, suspend or vary this Agreement in case of:-
10.1.1. A Customer uses the Facility for unauthorized purposes or where Y9 Microfinance detects any abuse/misuse, breach of content, fraud or attempted fraud relating to the use of Service;
10.1.2. If the Customer’s mobile money account or agreement with any of the mobile money networks is terminated for whatever reason;
10.1.3. If Y9 Microfinance is required or requested to comply with an order or instruction of or a recommendation from the government, court, regulator or other competent authority to that effect or necessitating it;
10.1.4. If a Customer is in breach of any part of this Agreement; or
10.1.5. If the Customer’s mobile money account becomes inactive or dormant.
10.2. Customers may not cancel (i.e., opt out) their registration for the Service at any time unless they settle all their outstanding liabilities due to Y9 Microfinance immediately upon attempt of such cancellation.
10.3. The termination of this Agreement by either Party shall not affect any accrued rights and liabilities of either party and in particular, shall not affect the Customer’s obligations to repay their outstanding liabilities due to Y9 Microfinance upon such attempt.
10.4. Y9 Microfinance may suspend the Service or terminate this Agreement if a Customer fails to meet their repayment obligations for a cumulated period of five days.
11. EVENTS OF DEFAULT
11.1. The following circumstances shall constitute an Event of Default: –
11.1.1. If the Customer fails to repay the Fees within 3 days after they become due;
11.1.2. If the Customer commits any breach or fails to observe, or perform any of the terms, conditions, covenants of this Agreement; and
11.1.3. In case a Customer fails to disclose or provides false, misleading or incorrect information to Y9 Microfinance in his application for the Service or during the duration of this Agreement.
11.2. At anytime after an Event of Default has occurred, Y9 Microfinance has the right to:-
11.2.1. Immediately lock the Smartphone to make it unusable;
11.2.2. Immediately following a Notice being sent to a Customer terminate this Agreement. Such termination does not constitute waiver of any other rights available at law or otherwise to Power to recover losses;
11.2.3. Declare that all Fees outstanding under this Agreement payable. Y9 Microfinance shall take all the necessary recovery measures as prescribed by the law to recover all the outstanding liabilities due from the Customer, including appointment of a debt collection agency and repossession of the Smartphone; and
11.2.4. The Customer does hereby authorize the Company to submit such information to the Credit Reference Bureaus as per the requirements of the law.
11.3. If a Customer settles his/her outstanding liability, Y9 Microfinance shall automatically unlock the Smartphone for the Customer due.
11.4. If the Automated unlock fails, the Customer should contact Y9 customer support for assistance.
12. CHANGES TO THESE TERMS AND CONDITIONS
12.1. Y9 Microfinance may change or vary the terms and conditions of this Agreement at any time subject to a Notice being sent to the Customers.
12.2. Y9 Microfinance may: –
12.2.1. Add any new fees and charges or change existing fees and charges at any time as a direct result of new legislation, statutory instrument, Government regulations or licenses, imposition or alteration of government tax; or
12.2.2. as a result of any review of Y9 Microfinance business planning, changes within the industry, recommendations from regulatory bodies or for such other reason as it may in its sole discretion determine.
13.1. These terms and conditions (as may be amended from time to time) form a legally binding agreement binding between the Parties.
13.2. A customer may not assign the Smartphone obtained from this Agreement to any other person without valid consent from Y9 Microfinance.
13.3. This Agreement shall be governed by and interpreted in accordance with the laws of Tanzania.
13.4. All communications under this Agreement will be in either English or Swahili.
13.5. Y9 Microfinance shall have a legal claim against the Smartphone as security until full and final payment by the Customer. The legal title of the Smartphone shall pass from Y9 Microfinance to the Customer upon the Customer making the full repayment of the outstanding liabilities due on the Smartphone.
13.6. A Customer may not port the Smartphone with any other number until when they have fully discharged their obligations to Y9 Microfinance under this Agreement. Failure to comply with this directive will result in the Customer’s Smartphone being locked by Y9 Microfinance.
13.7. Customers irrevocably agree to any future transfer and assignment by Y9 Microfinance of their loan, whether as part of the Y9 Microfinance Smartphone financing membership plan or otherwise.
13.8. Customers should ensure that they repay their Loans during the duration of the loan tenure to avoid the Smartphone being locked.
13.9. Customers should ensure that their Smartphone has access to the internet to enable the Smartphone to be unlocked after you have cleared your outstanding liabilities.
13.10. Customers should readily use the Y9 App to check their outstanding liabilities for any other service that they may obtain from Y9 Microfinance.
14.1. Customer hereby accepts and agrees that Y9 Microfinance makes no full representation as to merchantability, quality, reliability, or fitness for purpose of the Smartphone offered under this Agreement.
14.2. Y9 Microfinance shall not be liable for any defect of the Smartphone, except for: –
14.2.1. If the defect occurs after the duration of the Loan Tenure; and
14.2.2. If the defect is caused by willful neglect or deliberate damage by the Customer.
15. COMMUNICATION & COMPLAINTS
15.1. If a Customer is not satisfied with any aspect of the service offered, Customers may contact Y9 Customer Service Centre by calling 0800750260. The Y9 Customer Service Centre will be pleased to help and explain the complaints procedure in more detail. Y9 Customer Service Centre will try and resolve Customer’s complaints as soon as they are received. However, often, complaints will need to be investigated. If a Complaint is under investigation, Y9 Customer Service Centre will respond to the Customer within 5 Business Days.
16.1. Each party agrees that this Agreement and any other documents to be delivered in connection herewith may be electronically signed, and that any electronic signatures or any ‘Opt-In’ verification appearing at the time of accepting this Agreement or such other documents are the same as handwritten signatures for the purposes of validity, enforceability, and admissibility as per the laws of Tanzania.