GENERAL TERMS AND CONDITIONS - YOUTH ENTREPRENUERSHIP FINANCING FACILITY
1. GENERAL DECLARATION
The Customer hereby declares the following to SME Digital Pvt Ltd
- 1.1 I confirm that all information provided in this application (and supporting documents submitted with this form) is true and correct, and that no relevant information has been withheld.
- 1.2 I understand that the processing of this application will require adequate time and is subject to the financing criteria and standard approval process of SME Digital.
- 1.3 I will not make attempts to influence the decision of SME Digital by canvassing any members of the Management or Approval Authorities.
- 1.4 I agree that the funds received under this Facility shall not be utilized for any Shari'ah non-compliant purpose. I further agree not to acquire or purchase any goods or services that are not Shari'ah-compliant and not to utilize any asset constructed /goods purchased under the facility for any Shari'ah non-compliant purposes.
- 1.5 I acknowledge that SME Digital may continuously rely on the information contained in the application, and I are obligated to amend and/or supplement the information provided in this application if any of the material facts that I have represented herein should change prior to the financing facility being completely paid off.
- 1.6 I further understand that SME Digital reserves the right to reject this application (or if after approval, to cancel the facility and call back the entire outstanding amount) if this application or my actions are in contradiction to this Declaration or the facility Agreement or established Shariah principles.
- 1.7 I agree to sign a guarantee to take all responsibilities regarding the facility, until all outstanding cost/profit amounts and all other payments are fully paid.
- 1.8 I further understand that relevant charges and fees will apply as per the prevailing Schedule of Charges and Fees of SME Digital and amendments thereto and that it is my responsibility to clarify such applicable charges.
- 1.9 I acknowledge that SME Digital Pvt Ltd reserves the right to approve a Financing Amount that differs from the amount applied for, in accordance with its credit assessment, financing criteria and internal policies and shall not affect the essence and the validity of the contract.
- 1.10 I undertake to purchase the commodity(ies) as bought by SME Digital from a commodity seller and enter into any transaction required by SME Digital as per the Tawarruq concept used in Islamic Banking and as per the terms of this facility.
- 1.11 I agree to the General Financing Terms below which forms an integral part of this form, and offer to enter into the relevant contract(s)/ arrangement(s) with SME Digital.
2. GENERAL FINANCING TERMS
The customer hereby agrees to the following:
- 2.1 The Customer acknowledges that the Facility is structured as a Shari'ah-compliant Commodity Murabaha (Tawarruq) financing arrangement and that the transactions undertaken pursuant to the Facility are intended to comply with the applicable Shari'ah requirements.
- 2.2 The Customer hereby requests SME Digital Pvt Ltd to purchase, from a supplier of its choice, a Shari'ah-compliant commodity at a cost equal to the Financing Amount specified in the Customer's application for the Facility. The Customer irrevocably promises to purchase the commodity from SME Digital Pvt Ltd under a Murabahah arrangement at the cost plus the agreed profit, subject to the terms and conditions of the Facility and the Murabaha Sale Agreement.
- 2.3 Customer shall be responsible for making the monthly repayments due under this Agreement, and hereby agrees to pay monthly repayment before the end of each month.
- 2.4 Profit charges will be 7% p.a. SME Digital may, at its sole discretion, bring changes to the fees, and profit charge prior to conducting a Tawarruq transaction. Such changes shall be effective from the date of public announcement via the SME Digital website and SME Portal.
- 2.5 Customer hereby consents to SME Digital disclosing information regarding their outstanding financing obligations to its parent company, Bank of Maldives Plc. Furthermore, the Customer provides unconditional consent for such information, including facility outstanding balances, overdue amounts, and other facility details—to be made accessible via their respective user accounts on the Bank of Maldives PLC Internet Banking and Mobile Application platforms. The Customer also agrees to waive any right to claim damages or initiate legal action for any loss incurred as a result of the disclosure of such information.
- 2.6 Customer shall maintain an active account with Bank of Maldives Plc to facilitate the operation of the Facility and repayments. In this regard, the Customer authorizes SME Digital to deduct the monthly payments of the Facility and any amounts payable under these terms and conditions from the Customer's Bank of Maldives Plc account. Where there are insufficient funds in the repayment account, the Customer further authorizes SME Digital to deduct the outstanding amount from any other bank account held in the Customer’s name at Bank of Maldives Plc, without prior notice.
- 2.7 In the event the Customer’s income is not deposited to the specified Bank account whereby the monthly payment amount is not paid or in the event the customer breaches a term of this Agreement or for any other reason whatsoever; SME Digital reserves the right to immediately cancel the facility at any time without prior notice, in accordance with the relevant laws, regulations, and SME Digital’s internal procedures, and demand full payment of outstanding facility amount including outstanding cost/profit amounts and all other payments incurred up to that date.
- 2.8 The Customer undertakes to contribute, in addition to the monthly installment, an amount to SME Digital's Charity Fund in accordance with SME Digital's Schedule of Charges and Fees, as amended from time to time, if the Customer fails to pay any monthly installment or any part thereof when due, or upon the cancellation or termination of the Facility, where the Customer fails to settle the outstanding amounts within the period specified by SME Digital. The Customer acknowledges and agrees that any amount contributed to SME Digital's Charity Fund shall not be used for the direct or indirect benefit of SME Digital.
- 2.9 The Customer shall adjust all and any dues within the period stipulated by SME Digital if the entire outstanding payment is called back. In the event of failure to make the said adjustment the Customer agrees to unconditionally handover the assets or goods given as guarantee under this facility or make it accessible to, or sell it, to SME Digital. If the dues are not fully adjusted from the gain on sale of the said goods, the Customer agrees to pay the entire outstanding amount without delay by selling any and all other properties in his/her name, through the legal process, either through the court proceedings or out of court, without any further delays.
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2.10 To secure the due and punctual payment, performance, satisfaction and discharge by the Customer of any outstanding amount to SME Digital, the Customer hereby agrees to the following
- 2.10.1 charge in favor of SME Digital by way of a first priority floating security interest all the rights and interests to the deposits (general or special or otherwise, and regardless of the currency in which such deposits are denominated) held in all bank accounts of the Customer in any other bank or financial institution (the “Charged Accounts”) and
- 2.10.2 irrevocably assigns the Charged Accounts by way of security to SME Digital until all amounts due from the Customer to SME Digital are settled in full.
- 2.11 By signing this financing facility agreement, the Customer authorizes all other banks and financial institutions in the Republic of Maldives to accept any and all instructions from SME Digital with regard to the operation of the charged accounts maintained at such banks and accept all instructions from SME Digital to withdraw and / or transfer the funds.
- 2.12 The Customer hereby authorizes SME Digital to deliver such notice to the respective banks or financial institutions at any time Customer is in breach of this agreement and fails to repay accordingly. The Customer further authorizes SME Digital and utilize funds so received to adjust any outstanding due from the Customer to SME Digital.
- 2.13 In no circumstances shall this clause be interpreted as SME Digital having any form of liability or responsibility towards the Customer. No delay, indulgence or relaxation in exercising of any of the SME Digital’s rights under these terms and conditions shall constitute a waiver of such rights.
- 2.14 The Customer shall, immediately upon demand or instruction by SME Digital and at the entire cost and expense of the Customer, make, execute, do and perform all acts, deeds, documents, instruments, matters and things SME Digital shall consider necessary or proper to ensure that SME Digital obtain the full benefits and all rights over the Charged Accounts.
- 2.15 The Customer hereby unconditionally authorizes SME Digital to disclose any financing facilities of the Customer or Information Record Clearance Form and their Bank liabilities to other Banks, Government of Maldives, MIRA, Maldives Monetary Authority, Credit Information Bureau, any competent regulatory or legal authority, and any third party engaged or affiliated with SME Digital for the purpose of administering, facilitating, or enforcing the financing facility. The Customer acknowledges and agrees that such disclosure may be made where reasonably required for these purposes. The Customer further agrees not to commence or maintain any claim, action, or legal proceeding against SME Digital arising solely from any disclosure made in accordance with this Clause.
- 2.16 The Customer authorizes SME Digital to disclose information relating to the Customer's financing facility to authorized third parties for the purpose of monitoring, inspecting, administering, or evaluating the financing facility, whenever such disclosure is reasonably required. The Customer agrees to cooperate fully with such authorized third parties in connection with any monitoring or inspection of the financing facility. The Customer further agrees not to commence or maintain any claim, action, or legal proceeding against SME Digital arising solely from any disclosure made in accordance with this Clause.
- 2.17 The Customer hereto consents that all disputes arising in connection with the Facility/Agreement shall be tried and litigated exclusively in Civil Court, Male’ as per section 69(g) of the Judicature Act (Law No 22/2010) and Section 47(e) Civil Procedure Act (Law No 32/2021), and further waive the right to submit such dispute to any other court jurisdiction stipulated in the Judicature Act and Civil Procedure Act.
