CEIMMARJ FINANCING
INCORPORATED
SEC REGISTRATION NO.
CS200308112
CERTIFICATE OF
AUTHORITY NO. 330
TIN 224853999000
LOAN AGREEMENT
Section 1: General Conditions of Personal Loan
1.1. Definitions and Interpretations
This section defines
the key terms used throughout this Loan Agreement to ensure clarity and uniform
understanding. Capitalized terms used in this document shall have the meanings
provided in Appendix 1. In case of any discrepancies or ambiguities in
the interpretation of the terms, the rules for interpreting the provisions set
forth in Appendix 1 shall prevail. Any conflicts in interpretation will
be resolved in accordance with the rules established in this appendix, and all
provisions shall be read in a manner that ensures fairness and consistency
across the entire document.
1.2. Available Features and Benefits
Mega Peso offers a variety of
personal loan products, each with specific terms and conditions that cater to
the unique financial needs of borrowers. These loans may vary based on factors
such as:
·
Interest Rates: Fixed or variable interest rates depending on the loan product.
·
Repayment Terms: Loans may have different repayment durations and frequencies (e.g.,
monthly, quarterly).
·
Loan Amounts: Each loan product has a defined minimum and maximum loan amount that a
borrower may apply for.
We reserve the right
to introduce new loan products or withdraw existing ones at any time.
Additionally, Mega Peso may modify certain features of an
existing loan product, such as changing interest rates, extending repayment
terms, or adding new benefits to specific loan classifications. These changes
will be applied based on market conditions, borrower feedback, and regulatory
developments. Borrowers will be notified of significant changes, and in some
cases, their consent may be required to continue using the modified loan
product.
1.3. Loan Classifications
Mega Peso may categorize
loans into different classifications, each offering a unique set of benefits
tailored to the borrower’s profile. Classifications may include, but are not
limited to:
·
Preferential Interest Rates: Loans with lower interest rates for eligible borrowers.
·
Exclusive Promotions: Access to promotional offers such as reduced fees or early repayment
discounts.
·
Enhanced Services: Additional services, such as personalized loan counseling or faster
loan processing, may be offered for certain loan categories.
These
classifications are intended to enhance the overall borrowing experience by
providing customized loan options based on factors such as creditworthiness,
repayment history, and income level. Mega Peso reserves the right to amend, withdraw, or introduce new loan
classifications at any time. Borrowers will be notified of these changes and
will have the opportunity to select a loan classification that best meets their
financial needs. Loan eligibility will be determined based on the borrower’s
financial profile, credit score, and the loan product they wish to apply for.
1.4. Lender-Borrower Relationship
This agreement
governs the relationship between Mega Peso
("Lender") and the individual or entity applying for the loan
("Borrower"). The Lender agrees to provide the Borrower with the loan
amount, subject to the terms and conditions outlined in this agreement, and the
Borrower agrees to repay the loan in full, including applicable interest, fees,
and charges, by the agreed-upon dates. This repayment obligation includes:
·
Principal Loan Amount: The total loan amount disbursed to the Borrower.
·
Interest: The cost of
borrowing, calculated as per the terms of the loan product.
·
Fees and Charges: Any administrative or processing fees associated with the loan.
This loan agreement
establishes a binding legal relationship between the Lender and the Borrower,
and both parties are expected to fulfill their obligations under this contract.
Any additional services or agreements between the Borrower and Mega Peso outside of this loan arrangement will be governed by separate terms, but
this agreement specifically addresses the lending relationship.
1.5. Pre-Termination of Personal Loan
Borrowers may
request to pre-terminate their loan (i.e., repay the loan in full before the
scheduled completion date). To do so, the Borrower must provide Mega Peso with a written notice indicating their intention to terminate the loan
early. This request is subject to approval, and additional fees, costs, or
penalties may apply. These may include:
·
Pre-termination Penalties: A fee charged for repaying the loan before the end of the loan term, as
specified in the loan contract.
·
Accrued Interest: The total interest owed up until the date of pre-termination.
·
Administrative Fees: Costs associated with processing the early termination of the loan.
All associated
charges will be borne by the Borrower, and full repayment of the outstanding
balance, including interest and applicable fees, will be required at the time
of pre-termination.
Without limiting our
right to terminate, Mega Peso reserves the right to suspend or
terminate the loan agreement if any of the following conditions arise:
·
Failure to Meet Obligations: If the Borrower fails to make payments as required or fails to meet
other contractual obligations.
·
Insolvency or Liquidation: If the Borrower becomes insolvent or if liquidation proceedings are
initiated against them.
·
Legal Orders: If a legal order, court ruling, or regulatory directive impacts the
Borrower’s loan account or ability to repay.
·
Other Circumstances: Any other events, including regulatory changes or fraudulent activity,
that justify the suspension or termination of the loan agreement.
1.6. Actions After Termination
In the event that
the loan agreement is terminated, either by the Borrower through
pre-termination or by Mega Peso due to failure to meet obligations or
other reasons, the Lender reserves the right to take the following actions:
·
Cancel Unexecuted Instructions: Any instructions or requests from the Borrower that have not been
executed at the time of termination will be canceled.
·
Complete Pending Transactions: Transactions that were initiated prior to termination may be completed
at the discretion of the Lender.
·
Recover Outstanding Amounts: The Lender retains the right to recover any outstanding balances, fees,
interest, or penalties that were accrued prior to termination.
Even after
termination, the Borrower remains responsible for fulfilling all obligations
that were accrued prior to termination. This includes repayment of any
remaining loan principal, interest, and fees. The Borrower may not absolve
themselves of these responsibilities by terminating the agreement, and Mega Peso retains the right to pursue all legal means to recover outstanding
amounts, including engaging third-party collection agencies or pursuing legal
action.
Section 2: Data and Customer Information
2.1. Definitions
This section
clarifies the terms and definitions used in relation to the collection,
processing, and sharing of customer information under this agreement. Key terms
include:
·
Authorities: Refers to regulatory bodies, governmental agencies, or judicial bodies
that have the legal authority to regulate or oversee any part of the services
provided by Mega Peso. This may include entities such as
tax authorities, central banks, or courts.
·
Connected Person: Any individual or entity whose information is provided to Mega Peso in connection with the services offered. This may include individuals
such as guarantors, co-signers, family members, or business partners who have a
relationship with the Borrower and are relevant to the loan application or
servicing.
·
Customer Information: Refers to personal information, tax data, financial details, and other
confidential data provided by or related to the Borrower or any Connected
Persons. This information may include identification numbers, income details,
contact information, or loan history.
·
Financial Crime: Any criminal activities involving financial transactions, including but
not limited to money laundering, bribery, fraud, terrorist financing, tax
evasion, and violations of economic sanctions. Mega Peso is obligated to detect and prevent such activities as part of its
regulatory compliance.
2.2. Collection and Processing of Information
Mega Peso collects and processes customer information to provide financial
services and to comply with legal and regulatory obligations. The data
collected is used to ensure that all transactions are legitimate and that the
Borrower’s financial situation is assessed accurately.
Information may be
collected from:
·
Borrower: Data provided
directly by the Borrower during the loan application process, including but not
limited to full name, address, identification numbers (e.g., social security
number), bank details, income verification, and employment status.
·
Third-Party Entities: Information provided by third parties, such as credit bureaus,
employers, or other financial institutions, to assess the Borrower's
creditworthiness and confirm the accuracy of the Borrower’s financial profile.
·
Publicly Available Sources: Data gathered from public records, databases, or other available
sources to verify the Borrower’s identity and financial background.
The collected
information is used for several purposes, including but not limited to:
·
Managing and Verifying Accounts: Ensuring the Borrower’s account is accurate and properly managed
throughout the loan term.
·
Credit Assessment: Evaluating the Borrower’s creditworthiness, including conducting
background checks and reviewing credit scores. This assessment helps determine
whether the Borrower qualifies for a loan and under what conditions.
·
Compliance with Legal Requirements: Ensuring adherence to financial crime prevention laws, such as
anti-money laundering (AML) regulations, and verifying the Borrower's identity
through the Know Your Customer (KYC) process.
·
Loan Servicing: Managing the Borrower’s loan throughout its lifecycle, from
disbursement to repayment.
2.3. Sharing of Information
By entering into
this loan agreement, the Borrower consents to the sharing of their personal and
financial information with third parties, where necessary, to facilitate loan
servicing and to comply with legal and regulatory requirements. The Borrower’s
information may be shared with the following entities:
·
Subcontractors and Service Providers: To process and manage loan services, Mega Peso may share data with subcontractors, IT service providers, or third-party
processors. These entities help with tasks such as data storage, loan
management, and payment processing.
·
Regulatory Authorities: Mega Peso is legally obligated to share data with government entities or
regulatory bodies, such as tax authorities or financial regulatory commissions,
as required by law. This includes providing data in cases of audits,
investigations, or compliance reviews.
·
Credit Bureaus: Borrower data may be shared with credit reporting agencies to assess
the Borrower's credit history, both before and during the loan term. This
information may also be reported to credit bureaus, influencing the Borrower's
credit score based on their repayment behavior.
·
Financial Institutions: Data may be shared with banks, payment processors, and other financial
institutions to manage loan disbursements, repayments, and other financial
transactions.
·
Counterparties in Loan Servicing: If required, Mega Peso may also share data with third-party
partners involved in servicing or purchasing loan portfolios, including
investors or debt collection agencies.
The sharing of
customer information is conducted in accordance with applicable data protection
laws, and all third parties are bound by confidentiality obligations to ensure
that Borrower data is protected at all times.
2.4. Borrower Obligations Regarding Data
The Borrower has a
responsibility to ensure that all personal and financial information provided
to Mega Peso is accurate, up-to-date, and complete. This includes:
·
Accuracy of Information: The Borrower must ensure that all personal details, financial data, and
contact information submitted during the loan application process are correct
and truthful. Inaccurate information may result in the denial or termination of
the loan.
·
Updates to Information: If there are any changes to the Borrower’s personal or financial
situation, including changes in income, address, or employment status, the
Borrower must notify Mega Peso within 30 days of the change. Failure
to provide timely updates may result in suspension of services or termination
of the loan.
·
Connected Persons: If the Borrower provides information regarding Connected Persons (e.g.,
guarantors or co-signers), the Borrower is responsible for informing those
individuals of how their personal data will be used by Mega Peso. The Borrower must obtain consent from Connected Persons for the use and
sharing of their data as described in this agreement.
If the Borrower
fails to meet their obligations regarding the provision or updating of
information, or if the Borrower withdraws consent for data processing, Mega Peso may take the following actions:
·
Suspension or Termination of Services: The Borrower’s access to loan services may be suspended or terminated
if accurate and complete information is not provided or updated as required.
·
Compliance with Legal Obligations: Mega Peso reserves the right to take actions necessary to comply with applicable
laws and regulations, including notifying regulatory authorities or conducting
investigations if inaccurate information is provided.
·
Account Closure: If the Borrower fails to comply with data obligations or withdraws
consent, Mega Peso may be required to close the Borrower’s account and cease the provision
of services.
Section 3: Loan Operations
3.1. Interest
The interest rate
applicable to the loan will be determined at the time of loan approval and will
be explicitly stated in the loan agreement. Mega Peso reserves the right to set the interest rate based on several factors,
including:
·
Market Conditions: Prevailing interest rates in the financial markets, which may fluctuate
due to economic changes.
·
Borrower Creditworthiness: The Borrower’s credit score and financial history may influence the
interest rate, with lower rates offered to more creditworthy applicants.
·
Loan Amount and Term: The interest rate may vary depending on the size and length of the
loan, with shorter terms or smaller loans potentially incurring different
rates.
Interest will accrue
on the outstanding balance of the loan daily, based on the actual number of
days the loan is outstanding and the agreed-upon interest rate. Interest will
be compounded as per the loan agreement and applied on the repayment dates
specified in the amortization schedule. Mega Peso retains the right to adjust interest rates during the loan term in the
event of significant market changes or regulatory requirements, provided that
the Borrower is notified in advance of any adjustments.
3.2. Amortization Schedule
Upon disbursement of
the loan, Mega Peso will provide the Borrower with a detailed Amortization Schedule,
which will outline the repayment structure for the loan. This schedule will
include:
·
Principal and Interest Breakdown: The amount of each installment that goes toward repaying the principal
and the interest.
·
Repayment Dates: Specific due dates for each installment, ensuring timely repayment
throughout the loan term.
·
Final Repayment Date: The date on which the loan must be fully repaid, including any
outstanding interest and principal.
The Borrower is
required to adhere to this repayment schedule unless a written agreement is
made to modify it. Any changes to the amortization schedule, such as early
repayment or extensions, must be formally requested by the Borrower and
approved by Mega Peso. Failure to adhere to the schedule
may result in additional fees or penalties, including late payment charges or
default actions as outlined in the loan agreement.
3.3. Loan Disbursement
Once the loan has
been approved, the agreed-upon loan amount will be disbursed directly to the
Borrower's designated bank account or other financial account. The disbursement
process includes the following:
·
Deductions: Before disbursing
the loan, Mega Peso may deduct any applicable fees, such as origination fees, administrative
costs, or initial interest charges. These deductions will be clearly outlined
in the loan agreement and reflected in the net disbursed amount.
·
Notification: The Borrower will receive a notification via email or other agreed
communication channels confirming the disbursement of the loan, including the
final disbursed amount and any deductions applied.
·
Account Designation: The loan will be disbursed to the bank account or financial account
specified by the Borrower during the loan application process. It is the
Borrower’s responsibility to ensure that the account details provided are
accurate and up-to-date. Mega Peso will not be responsible for delays or
errors in disbursement resulting from incorrect account information.
The Borrower agrees
to repay the full loan amount, including any accrued interest, in accordance
with the terms outlined in the amortization schedule and the loan agreement.
Repayments will begin as per the agreed start date, and the Borrower must
ensure timely payments to avoid penalties.
Section 4: Debt Collection Policies
4.1. Debt Collection
If the Borrower
fails to repay the loan according to the terms outlined in this agreement, Mega Peso reserves the right to take necessary actions to recover the outstanding
debt. These actions may include:
·
Engagement of Third-Party Collection
Agents: Mega Peso may assign or sell the outstanding debt to third-party collection
agencies to pursue repayment on its behalf. The Borrower acknowledges and
agrees that their personal and loan-related information may be shared with
these third-party agencies strictly for the purpose of debt recovery.
·
Legal Remedies: In cases of severe default or non-payment, Mega Peso may initiate legal proceedings to recover the outstanding loan amount,
including the principal, accrued interest, and any applicable fees. Legal
remedies may include filing lawsuits, obtaining court orders, or placing liens
on the Borrower’s assets.
The Borrower will be
held responsible for all costs incurred during the debt recovery process. This
may include, but is not limited to:
·
Legal Fees: Any attorney’s
fees or court costs incurred by Mega Peso in its efforts to
recover the outstanding loan.
·
Collection Fees: Fees charged by third-party collection agents, which may be added to
the outstanding debt balance.
·
Other Recovery Costs: Any additional costs related to the debt collection process, such as
administrative fees, documentation, or enforcement actions.
If the Borrower
wishes to resolve the debt after the collection process has commenced, they
must contact Mega Peso or the assigned collection agency
directly to discuss possible payment arrangements.
4.2. Recording of Communications
In the course of administering
the loan, Mega Peso reserves the right to record all communications between the Borrower and
the company, including:
·
Telephone Conversations: Any discussions between the Borrower and customer service
representatives or debt recovery agents regarding loan terms, repayments, or
disputes.
·
Electronic Communications: Emails, messages, or any other written forms of communication exchanged
between the Borrower and Mega Peso.
These records may be
used for several purposes, including but not limited to:
·
Monitoring and Compliance: Ensuring that all communications are conducted in a manner that
complies with internal standards and regulatory requirements.
·
Dispute Resolution: Providing evidence in cases of disputes or misunderstandings regarding
the loan agreement, repayment terms, or actions taken by either party.
All recorded
communications will be stored securely and in compliance with applicable data
protection and privacy laws. Mega Peso will not disclose the contents of
these communications to unauthorized third parties except as required by law or
in connection with legal or regulatory investigations.
Section 5: Miscellaneous Provisions
5.1. Governing Law and Jurisdiction
This loan agreement
will be governed by and construed in accordance with the laws of the Republic
of the Philippines. Any disputes arising from this agreement will be
subject to the jurisdiction of the courts located in the Philippines.
5.2. Changes to Terms
Mega Peso reserves the right to modify or update the terms and conditions of this
agreement, including interest rates, fees, and repayment terms. Changes will be
communicated to the Borrower in advance. Continued use of services or
non-payment will indicate acceptance of the revised terms.
5.3. Limitation of Liability
Mega Peso will not be liable for any loss or damages arising from the Borrower's
use of services provided by third parties. Similarly, Mega Peso shall not be held responsible for any failure in services due to factors
beyond its control, such as network failures, legal constraints, or external
factors.
Appendix 1: Definitions and Interpretations
·
Applicable Regulation: Refers to any local or foreign law, court order, or directive with
which Mega Peso or the Borrower is required to comply.
·
Authorities: Includes regulatory or governmental agencies with jurisdiction over the
Borrower's loan account.
·
Service: Refers to any
banking, loan, or financial service provided under this agreement.