Lender Agreement

5. Lender Agreement Version 1.0 | Effective date: [Not configured] 5.1 Lender status and funds The lender confirms that funds are lawfully owned or controlled, are not deposits collected unlawfully from the public, and are not proceeds of crime. A lender conducting lending as a business must independently obtain all licences, registrations, tax treatment and approvals required by Kenyan law. Platform access is not regulatory authorisation. 5.2 Independent decision and risk The lender independently assesses each request and accepts the possibility of delay, default, fraud, unsuccessful recovery and total loss. Verification, scores and transaction history reduce but do not eliminate risk. PesaPact does not give investment, tax or legal advice and does not guarantee principal, interest, liquidity or enforcement. 5.3 Fair offers and disclosures Every offer must clearly state principal, net disbursement, interest method, lender charges, platform charges, total repayment, instalments, due dates, grace period, late charges, security and enforcement terms. The lender must not add off-platform charges or require undisclosed cash collateral, deposits, access to private contacts or unrelated personal data. 5.4 Responsible lending The lender must consider available affordability information and must not knowingly structure a loan that depends on repeated refinancing, coercion or the sale of essential household assets. The lender must not discriminate unlawfully and must use borrower data only for the proposed loan, administration, lawful recovery and legal compliance. 5.5 Collections The lender may send proportionate reminders, make a documented restructuring offer, issue a formal demand and pursue lawful recovery. The lender must not threaten violence, impersonate officials, contact unrelated persons to shame the borrower, publish the debt or seize assets without lawful process. Where a licensed auctioneer, advocate, debt collector or other professional is legally required, the lender must use an appropriately authorised person. 5.6 Tax and records The lender is responsible for obtaining tax advice and declaring taxable income where required. PesaPact transaction summaries are administrative records and not a tax opinion. 5.7 Institutional lenders SACCOs, chamas, companies and institutions must provide authority documents and must not use consumer-facing PesaPact terms as a substitute for their own regulatory obligations, policies or customer disclosures.