1. Introduction and Acceptance

These Credit Terms and Conditions ("Terms") govern all credit facilities, products, and related services provided by BFS Microfinance Ltd ("BFS", "the Institution"). These Terms are issued in line with the laws of the United Republic of Tanzania, including the Bank of Tanzania regulations, Microfinance Act, consumer protection guidelines, and international microfinance best practices. By applying for or accepting any credit facility, the Client agrees to be bound by these Terms.

2. Definitions

• "Client" means any individual or legal entity that applies for or receives credit from BFS.
• "Loan" or "Credit Facility" means any financial accommodation granted by BFS.
• "Agreement" means the loan agreement executed between BFS and the Client.
• "Default" means failure to comply with repayment or other contractual obligations.

3. Eligibility and Know Your Customer (KYC)

All Clients must meet minimum eligibility requirements, including age, legal capacity, valid identification, and verifiable income. BFS shall conduct Know Your Customer (KYC) and Anti-Money Laundering (AML) checks as required by law.

To be eligible for our services, you must:

• Be at least 18 years of age
• Be a Tanzanian citizen or legal resident
• Have a valid form of identification (National ID, Passport, or Voter's Card)
• Provide accurate and truthful information
• Have a verifiable source of income

4. Credit Application and Appraisal

All loan applications shall be subject to credit appraisal procedures, including assessment of repayment capacity, credit history, and risk profile. BFS reserves the right to approve, decline, or conditionally approve any application without obligation to provide reasons.

5. Loan Approval and Disbursement

Loan approval is subject to internal authorization processes. Disbursement shall occur only after execution of the Agreement and fulfillment of all conditions precedent. Funds shall be disbursed through approved banking or digital channels.

6. Interest Rates, Fees, and Charges

Interest rates shall be determined on a risk-based pricing model and disclosed prior to loan execution. Fees may include processing fees, insurance premiums, default charges, and legal recovery costs. All charges shall comply with Bank of Tanzania regulations.

7. Repayment Obligations

The Client shall repay the loan strictly in accordance with the agreed repayment schedule. Failure to repay on time shall attract penalties and enforcement actions.

8. Default and Recovery

A loan shall be classified as non-performing in accordance with regulatory standards. BFS may initiate recovery actions including collateral realization, guarantor enforcement, and legal proceedings.

9. Collateral and Guarantees

Collateral must be legally owned, valid, and unencumbered. BFS reserves the right to value, monitor, and realize collateral upon default, in compliance with applicable laws.

10. Client Obligations

The Client undertakes to use the loan for its approved purpose, provide accurate information, and notify BFS of any material change affecting repayment ability.

11. Rights and Obligations of BFS

BFS reserves the right to report credit information to Credit Reference Bureaus, enforce contractual rights, and comply with regulatory directives.

12. Personal Data Protection and Confidentiality

BFS shall collect and process personal data in accordance with the Personal Data Protection Act, 2022. Personal data shall be used for credit administration, regulatory compliance, fraud prevention, and reporting to Credit Reference Bureaus. Clients have rights to access, correction, objection, and complaint to the Personal Data Protection Commission.

13. Complaints Handling

BFS shall maintain an internal complaint handling mechanism in line with consumer protection Regulation. Complaints shall be acknowledged within two business days and resolved within fourteen business days.

14. Dispute Resolution

Disputes shall be resolved amicably where possible, failing which mediation, arbitration, or courts of Tanzania shall apply.

15. Termination

BFS may terminate the credit relationship upon default or breach. The Client may terminate upon full settlement of obligations.

16. Amendments

BFS reserves the right to amend these Terms subject to regulatory approval and customer notification.

17. Force Majeure

BFS shall not be liable for failure arising from events beyond its reasonable control.

18. Governing Law and Jurisdiction

These Terms shall be governed by the laws of the United Republic of Tanzania, and Tanzanian courts shall have jurisdiction.