Executive Banking
Sustainability
Subject to any other Agreement between the Bank and the Borrower, these Terms and Conditions, together with the Bank’s General Terms and Conditions, govern the relationship between the parties in respect of E-credit Loan Facilities. By accepting them, the Borrower agrees to be legally bound by their provisions, which take effect from the date of publication and may be amended by the Bank from time to time.
1. DEFINITIONS
- “Bank” means The Co-operative Bank of Kenya Limited, a bank incorporated under the laws of Kenya whose registered office is at Co-operative Bank House, Haile Selassie Avenue, Nairobi.
- “Borrower” means the individual, company, partnership, or other legal entity that has applied for and has been granted Loan Facilities by the Bank.
- “E-credit Loan Facilities” means the E-credit Salary Loan, E-credit Business Loan and/or Merchandise Loan made available to the Borrower through the Co-op Bank Mobile Banking Application.
- “Due Date” means the maturity date by which the Borrower is legally obligated to repay all outstanding amounts under the Facility.
- “Top Up” means an additional loan over and above the current e-credit loan facility outstanding balance.
- “Refinance” means to repay a loan by taking out another loan.
- “Operative Account” means the account held by the Borrower with the Bank for purposes of processing transactions related to the Loan Facility.
- “Mobile Wallet Account” means the mobile money wallet held in the name of the Borrower and linked to the Co-op Bank Mobile Banking Application.
- “Co-op Bank Mobile Banking Application” means the Bank’s digital mobile banking platform accessible via mobile devices.
- “PIN” means the Personal Identification Number used by the Borrower to access and authorize transactions on the Co-op Bank Mobile Banking Application.
- “Force Majeure” refers to any event or circumstance beyond the reasonable control of the Bank which prevents or delays the performance of its obligations under these Terms, including but not limited to, acts of God, war, terrorism, civil unrest, public health emergencies, power and telecommunication outages, cyber-attacks or system downtime.
- “Co-opTill” refers to a merchant payment collection solution offered by the Bank enabling customers to receive payments via Mpesa Paybill directly into their Operative Accounts.
- “Security” means any security required by the bank offered as a condition for disbursement of the loan.
- “Collateral” means all real and personal property whether belonging to the borrower or a third party which is subject or intended to become subject to security granted to the Bank to secure the Borrower’s obligation.
- “Obligation” means: (a) all loans, advances, debts, liabilities owed by the Borrower, including all interest, fees, expenses, principal, premium; (b) any and all sums advanced or payable in order to effect or preserve the collateral or exercising any right under the collateral; (c) in the event of any proceeding for the collection or enforcement of the obligations after an event of default shall have occurred, the expenses of realizing the collateral together with Advocates costs and court fees.
2. LOAN PROCESS
2.1. Using their Equipment and subject to these Terms and Conditions, the Borrower may apply for E-credit Loan Facilities through the Co-op Bank Mobile Banking Application.
2.2. The E-credit Loan application shall be appraised in accordance with the Bank’s applicable loan appraisal processes. The Bank reserves the right, at its sole discretion, and without assigning any reason, to approve or decline a Borrower’s application for an E-credit Loan Facility.
2.3. At the time of application, the Borrower shall select their preferred facility tenure. The Borrower shall be obligated to repay the E-credit Loan Facility in full within the stipulated period.
2.4. Upon approval, the Bank shall disburse a loan amount to the Borrower, subject to minimum and maximum limits as determined solely by the Bank.
2.5. The disbursed E-credit Loan shall correspond to the specific E-credit Loan Product selected by the Borrower.
2.6. The proceeds of the E-credit Loan Facility shall be credited as follows:
- E-credit Salary Loan: into the Borrower’s Mobile Wallet Account.
- E-credit Unsecured Business Loan: into the Borrower’s Operative Account.
- E-credit Salary/Business Merchandise Loan: into the Merchant’s Operative Account.
- E-credit Co-op Till Biashara Overdraft: into the Borrower’s Operative Account.
2.7. The borrower may request a top up or refinance on their existing facility subject to eligibility as determined solely by the Bank.
2.8. In consideration of the Bank granting the E-credit Loan Facility, the Borrower undertakes to pay the Bank the applicable charges as stipulated in Clause 4 below.
2.9. By completing an E-credit Loan Facility application, the Borrower shall be deemed to have read, understood, and accepted to be bound by all the Terms and Conditions herein.
3. CHARGES
3.1. The Borrower shall be liable for all fees, commissions, and charges incurred or applicable in relation to the E-credit Loan Facilities, as specified herein and as shall be displayed on the Co-op Bank Mobile Banking Application at the time of loan application.
3.2. The following charges shall apply to the E-credit Loan Facilities and may be subject to change from time to time to the full extent permitted by law:
i) E-credit Salary Loan
| Loan Tenure | Appraisal Fee |
|---|---|
| 1 month | 8% |
| 2 months | 10% |
| 3 months | 12% |
ii) E-credit Unsecured Business Loan
| Loan Tenure | Appraisal Fee | Interest |
|---|---|---|
| 1 day | 3% | 1% (one off) |
| 7 days | 3% | 2% (one off) |
| 14 days | 3% | 3% (one off) |
| 1 – 6 months | 3% | 4% per month |
iii) E-credit Co-opTill Biashara Overdraft
| Loan Tenure | Access Fee | Daily Interest |
|---|---|---|
| 7 days | 1.5% | 0.15% |
| 14 days | 3% | 0.12% |
| 30 days | 5% | 0.10% |
iv) E-credit Secured Business Plus
| Loan Tenure | Appraisal Fee | Interest |
|---|---|---|
| 1 – 12 months | 3% | 4% per month |
3.3. An Excise Duty of 20%, as imposed under the Excise Duty Act, shall be charged on Appraisal Fees.
3.4. The Bank may, at its sole discretion, recover all applicable fees, charges, and other amounts due either upfront or in arrears from the loan amount or from any of the Borrower’s accounts held with the Bank.
3.5. The applicable charges shall also be displayed in the Bank’s Tariff Guide, which is available upon request at all Bank branches and on the Bank’s official website (www.co-opbank.co.ke).
4. INSURANCE
4.1. The Bank shall recover a Credit Life Insurance Premium of 0.034% per month of the loan amount at the time of loan acceptance, covering death.
4.2. The said premium shall take effect from the date of disbursement and shall be deducted upfront from the loan disbursement amount.
5. REPAYMENT, TERM AND REVIEW OF FACILITIES
5.1. The Borrower shall repay the E-credit Loan Facility in full on the Due Date as indicated in the repayment schedule generated through the Co-op Bank Mobile Banking Application. The repayment schedule shall be deemed binding and may be reviewed or amended at the sole discretion of the Bank.
5.2. The Borrower acknowledges and agrees that all amounts disbursed and outstanding under the E-credit Loan Facilities, including principal, interest, appraisal fees, charges, and applicable taxes, shall be repayable on demand and without set-off or counterclaim.
5.3. Notwithstanding the repayment schedule, the Bank reserves the right, at any time and without prior notice, to demand immediate repayment of all or any part of the outstanding amounts due.
5.4. Without prejudice to the foregoing, the Bank may, at its sole discretion, recover any amounts due by debiting any account of the Borrower held with the Bank, even if such debit results in the account being overdrawn beyond any authorized limit. Any amount so debited shall be deemed owing to the account for all purposes.
5.5. Facility limits shall be subject to periodic review or refresh by the Bank and may be varied, suspended, or terminated at the sole discretion of the Bank without prior notice to the Borrower.
6. VARIATION OF TERMS
The Bank reserves the right, at its sole discretion, to amend, vary, or modify these Terms and Conditions, including without limitation the applicable fees, charges, and other terms of E-credit Loan Facilities from time to time. Any such variation shall be made in accordance with the prevailing laws and regulations of the Central Bank of Kenya and the Bank’s internal policies and shall become effective upon notification through such means as the Bank may deem appropriate.
7. REPRESENTATIONS AND WARRANTIES
The Borrower hereby represents and warrants to the Bank that:
7.1. The Borrower has full legal capacity and authority to enter and perform its obligations under this Agreement.
7.2. No material adverse change has occurred in the Borrower’s financial position from the time of submission of the loan application to the date of acceptance of this Agreement.
7.3. All information provided to the Bank by the Borrower, including but not limited to personal, financial, and credit-related information, is true, accurate, complete, and not misleading in any material respect as at the date of submission.
7.4. The representations and warranties set out herein shall remain valid and binding for the entire duration of any outstanding E-credit Loan Facility.
8. CONDITIONS PRECEDENT
8.1. The granting and continued availability of the E-credit Loan Facilities shall be subject to the Borrower’s unconditional acceptance of these Terms and Conditions.
8.2. The Bank reserves the right, at its sole discretion and without assigning any reason, to approve or decline any application for an E-credit Loan Facility.
8.3. The Borrower irrevocably authorizes the Bank to act upon any loan application or related instructions submitted through the Co-op Bank Mobile Banking Application and agrees to be bound by such application or instructions.
8.4. The Borrower acknowledges that it is their sole responsibility to safeguard all credentials, including PINs and passwords, and agrees that the Bank shall not be liable for any unauthorized application, transaction, or disclosure made through the Co-op Bank Mobile Banking Application arising from misuse, theft, or manipulation of such credentials, whether or not occasioned by the Borrower’s negligence. The Borrower undertakes to promptly report any suspected security breach to the Bank.
8.5. The Borrower undertakes to continue routing their receivables and/or salary through the Bank for the duration of the loan facility or as required by the Bank.
8.6. Where applicable and upon request by the Bank, the Borrower shall provide supporting documentation, including but not limited to a letter from their employer confirming employment status and a credit recommendation.
9. BREACH OF CONDITIONS
9.1. In the event of any breach by the Borrower of these Terms and Conditions, the Bank shall issue a notice of default and may, without prejudice to any other rights or remedies available to it, demand immediate repayment of the entire outstanding loan balance.
9.2. Upon default, the Bank may debit any of the Borrower’s accounts held with the Bank, including the Operative Account, and take any other remedial action it deems necessary to recover amounts due, including legal proceedings, to the extent permitted by law.
10. DEFAULT
10.1. Any of the following shall constitute an Event of Default, upon which all amounts outstanding under the E-credit Loan Facility shall immediately become due and payable and any undrawn commitment shall be cancelled:
- Failure by the Borrower to make any repayment under E-credit Loan Facilities on Due Date or to fulfil any other obligations under these Terms and Conditions or the Bank’s General Terms and Conditions.
- A material adverse change in the Borrower’s financial condition, business prospects, or trading position that, in the Bank’s opinion, impairs the Borrower’s ability to fulfil its obligations.
- Any materially false, inaccurate, or misleading information or representation or warranty by the Borrower.
- Insolvency, winding-up, administration, receivership, or similar proceedings affecting the Borrower and its ability to pay debts as they fall due.
- Any indebtedness of the Borrower is accelerated or called due prior to its stated maturity as a result of default.
- Any guarantor purports to terminate or fails to honour its guarantee or indemnity when called upon.
- Revocation, cessation, or invalidation of any license, authorization, or exemption necessary for the Borrower to conduct its business or perform under this Agreement.
- The Borrower ceases or threatens to cease business operations without the Bank’s prior written consent.
10.2. Upon the occurrence of an Event of Default, the Bank may, at its sole discretion and without prior notice to the Borrower:
- Terminate any commitment to extend further E-credit Loan Facilities.
- Declare all amounts due and owing under the E-credit Loan Facility immediately payable, including without limitation, the outstanding principal loan amount, accrued interest, appraisal fees, and any applicable statutory taxes.
- Hold the Borrower liable for all legal fees and any reasonable costs, charges, and expenses incurred by the Bank in enforcing these Terms and Conditions, including a default fee or penalty, being a reasonable pre-estimate of the loss or damage suffered by the Bank as a result of the Borrower’s default, to the extent permitted by law.
- Recover any additional amounts that accrue from the due date until the full and final settlement of the Borrower’s obligations, and debit any of the Borrower’s accounts held with the Bank, notwithstanding any agreed overdraft limit.
- The Customer agrees that the Loan may be secured by:
- any existing security or collateral previously provided by the Customer to the Bank and held by the Bank as continuing security; and/or
- such additional collateral as the Bank may reasonably require.
- Exercise one or more of the following recovery measures, at the Borrower’s cost and risk, without further reference to the Borrower:
- Notify the Borrower’s employer of the default and initiate recovery through payroll deductions.
- Contact the Borrower’s next of kin as provided in the Bank’s records.
- Appoint external debt collection agencies.
- Institute legal proceedings against the Borrower.
- Initiate asset recovery, including but not limited to repossession, attachment, realization, sale and/or auction of any asset, property, or security that is provided to the Bank as collateral by way of a charge to the bank.
- Roll over the outstanding amount on 1 day, 7 days and 14 days Unsecured Business Loan facility. In such cases, the Borrower shall be liable to pay a penalty/roll over fee of 5%, which shall be deducted from the loan facility in addition to all outstanding amounts due. The charges imposed represent a reasonable pre-estimate of the loss suffered by the Bank due to the Borrower’s default.
11. INDEMNITY AND RECOVERY OF COSTS
11.1. The Borrower shall indemnify the Bank against all claims, liabilities, losses, damages, costs, and expenses, including legal fees and enforcement costs, incurred by the Bank as a result of:
- The approval, disbursement, or administration of the E-credit Loan Facility.
- Any breach by the Borrower of these Terms and Conditions.
- The Bank acting in good faith on any application or instruction believed to originate from the Borrower.
- The Borrower’s failure to safeguard personal credentials, devices, or systems used to access the Co-op Bank Mobile Banking Application.
11.2. The Bank shall not be liable for any delay, failure, or interruption in processing loan applications or transactions caused by system outages, third-party service disruptions, power failures, or other circumstances beyond the Bank’s reasonable control.
11.3. The Borrower shall bear all reasonable costs and expenses incurred by the Bank in recovering overdue amounts under the Facility. The Bank reserves the right to debit such costs from any of the Borrower’s accounts held with the Bank, without prior notice.
12. TERMINATION
12.1. The Borrower may terminate their obligations under these Terms and Conditions at any time by providing written notice to the Bank, accompanied by full repayment of all outstanding amounts due under the E-credit Loan Facility. Termination shall only take effect upon complete settlement of the Borrower’s obligations.
12.2. The Bank may, at its sole discretion, and without prior notice or reason, terminate or suspend the Borrower’s access to the E-credit Loan Facility. Upon such termination, the Borrower shall immediately repay all sums due, including any accrued interest, fees, charges, and penalties, within the period specified by the Bank.
12.3. Termination by either Party shall not affect any rights, liabilities, or obligations that accrued prior to such termination, including the Bank’s right to recover any outstanding amounts and costs incurred in enforcing these Terms and Conditions.
13. DISCLOSURE OF INFORMATION
13.1. The Borrower authorizes the Bank to disclose, receive, record, or utilize any information relating to the Borrower and their accounts, including personal details, loan applications, repayment history, and default status, for lawful purposes.
13.2. Such information may be shared with Credit Reference Bureaus, regulatory authorities, the Bank’s affiliates, service providers, agents, or other third parties for purposes including but not limited to loan evaluation, credit scoring, account management, legal or regulatory compliance, or where disclosure is required by law, court order, or competent authority.
14. SET-OFF, COMBINATION, AND CONSOLIDATION OF ACCOUNTS
14.1. The Bank may, at any time and without prior notice, combine or consolidate any or all the Borrower’s accounts held with the Bank and apply any available credit balances, after conversion to the appropriate currency at the prevailing exchange rate, if necessary, to offset any amounts owed under the E-credit Loan Facilities.
14.2. The Borrower hereby waives any right of set-off they may have against the Bank in respect of such transactions.
15. GOVERNING LAW & JURISDICTION
This Agreement shall be governed by and construed in accordance with the laws of the Republic of Kenya. The Borrower submits to the non-exclusive jurisdiction of the courts of Kenya. However, the Bank reserves the right to bring proceedings in any other jurisdiction as deemed appropriate.
16. CREDIT REFERENCE BUREAUS
The Borrower acknowledges and expressly consents that the Bank may, at any time and at its sole discretion, conduct credit checks and file credit information with licensed Credit Reference Bureaus on the Borrower and, in the case of a company, on its directors in accordance with the Banking Act.
17. DATA PROCESSING
The Borrower confirms that they have read, understood, and accepted the Bank’s Privacy Statement available at https://www.co-opbank.co.ke/privacy-statement/, and expressly authorizes the Bank and its affiliates to collect, use, store, and process their personal data in accordance with the Data Protection Act, 2019. This includes processing for purposes such as service delivery, credit appraisal, account management, marketing, and compliance with legal or regulatory obligations.
18. FORCE MAJEURE
18.1. The Bank shall not be liable for any delay, interruption or failure in the provision of the E-credit Loan Facility due to any Force Majeure Event.
18.2. Upon the occurrence of a Force Majeure Event, the Bank may, at its sole discretion, suspend the E-credit Loan Facility without liability until normal operations can be resumed.
18.3. Notwithstanding the occurrence of any Force Majeure Event, the Customer remains fully obligated to repay all outstanding amounts due under the E-credit Loan Facility.
19. SECURITY
The Bank may, upon approval of the loan, accept the security offered and/or require other additional collateral as a precondition and perfect it as security which shall remain valid and binding.