Employer Guaranteed Loans

How it works:

* The company applies for a global facility limit in respect of the total loan requirement for all staff. The application has to be supported by the company's latest audited and management accounts.

* When the facility is approved the company signs a Letter of Undertaking to Indebank for the entire facility with specific responsibility to deduct the monthly repayment installments from employee's salary and remit to the Bank within five (5) days of payroll and where applicable utilize terminal benefits to redeem any outstanding debt.

* Individual employee applications are processed by the employer in line with employer's loan policy.

* The application forms duly signed by the company's authorized signatories are forwarded to Indebank who disburses the funds as specified in the application.

* On a specified due date the employer will remit the total applicable monthly repayment/installment as stipulated in the amortization schedule to Indebank with a detailed schedule of names of borrower and repayment amounts.

* In case of the employee leaving the company for whatever reason (i.e. resignation, death, retirement, dismissal), the employer will deduct terminal benefits sufficient to repay the outstanding loan balance plus interest accrued interest to Indebank.

Other Features:

* The Loan is repayable over a maximum period of forty-eight months (4 years) for motor vehicles and twenty-four months (2 years) for the other purchases with the option of lesser tenor say twelve, eighteen etc. For second hand vehicles the maximum period of repayment is 36 months (3 years).

* Early settlement is permissible without penalties.

* Consumer Credit attracts an up-front Arrangement Fee of 1% (min K2, 000). The loan is disbursed net of the 1% Arrangement Fee.

* Interest accrues on daily basis on the outstanding balance and is debited to the account at month end.

* The applicable interest rate is 3% above Indebank's base rate per annum. This rate is subject to change and any such change is advised to the employer.