Definitions

Disbursement Date - the date on which the Loan has been disbursed to Customer’s bank account provided by Customer via Platform;

Lotus Loan – the commercial/ brand name of The Customer is required to answer a phone call made to the Customer by the Service Provider or the Phone Verification Agent and verify his/her identity to the satisfaction of the Service Provider;

Notice to Customer - the notifications/approvals/confirmations and any other communications (where applicable) sent by the Service Provider by itself or through the Phone Verification Agent to the Customer in respect of certain matters as maybe referred in this Agreement that are to be performed via SMS and/or direct call to the Customer’s mobile phone number as provided in this Agreement (“Registered Phone Number”) and/or via such other method(s) that the Service Provider may deem fit;

Pay Day - the date of the expiration of the respective Loan tenure;

Payment Agency - payment services provider as appointed by the Service Provider from time to time;

Phone Verification Agent – specialist employed by the Service Provider who is assisting Customer at the application process and verifies Customer identity;

Platform - an internet based lending platform owned and operated by the Service Provider, using the domain http://www.lotus.loan; Processing Fee - a fee payable by Customer to the Service Provider for the processing of the loan. The amount of processing fee is stated in the Section I of the Loan Agreement;

Registered Phone Number - the mobile phone number of the Customer as provided in this Agreement;

Service Center - the service center of Service Provider, the details of which shall be provided to the Customer;

Service Fee - fee payable to the Service Provider in terms of clause 6 of the Loan Agreement, the amount of Service fee is stated in the Section I (“The Loan”);

Service Provider – Zephyr Solutions (Private) Limited, a company incorporated in Sri Lanka bearing company registration number PV 125704;

SMS Code - a four-digit code sent by the Service Provider to Customer’s Registered Mobile Phone Number via short message service (SMS).

LOANS

The Customer agrees to borrow for his personal use and the Service Provider agrees to lend the Customer upon fulfilment of minimum conditions stated in clause 03, an amount of money as provided in the online calculator of the website considering the fees and charges stipulated in this Agreement.

The said Loan shall be subject to interests and other fees and charges discussed in this Agreement.

MINIMUM CONDITIONS

1. The Customer agrees and understands that the Loan(s) shall only be granted upon fulfilling the following minimum conditions and the Customer hereby represents and warrants to the Service Provider that the Customer satisfies or shall satisfy these minimum conditions.

   
   

   1. The Customer’s age is above twenty-two (22) years at the time of application for the Loan;

   2. The Customer’s monthly income shall be equal to or more than Sri Lankan Rupees Twenty Five Thousand (LKR 25,000/-);

   3. The Customer’s residential address is located within Sri Lanka;

   4. The Customer is required to accepts his/her SMS Code within fifteen (15) minutes of the SMS being sent to the Registered Phone Number of the Customer via the Platform;

   5. The Customer is required to answer a phone call made to the Customer by the Service Provider or the Phone Verification Agent and verify his/her identity to the satisfaction of the Service Provider;

   6. The information provided by the Customer are verified by the references provided by the Customer to the satisfaction of the service provider when deemed necessary.

2. The Customer agrees and understands that the Service Provider and/or the Phone Verification Agent has conducted and/or shall conduct data verification, which shall include but not be limited to

   1. Verification by way of phone calls to the Customer and references provided by the Customer as well as to the Customer’s employer if deemed necessary by the Service Provider or Phone Verification Agent;

   2. Mobile phone verification; and. processing data from social network profiles, provided by the Customer during the loan application process.

DETAILS OF THE LOAN

1. The Customer hereby acknowledges and agrees to be bound by and comply with Notice to Customer in any event. In the event that the Notices to Customer contain any error(s) and/or mistake(s), the Service Provider reserves the right to correct, amend such information or error by sending another Notice to Customer within seven (07) business days from the date of the original Notice to Customer.

2. The Loan amount, Loan tenure, Interest rate, Processing Fee and service fee are provided in Section I of the Loan Agreement.

3. The Loan shall be disbursed to the Customer’s bank account provided by Customer via Platform. The Service Provider shall issue Notice to Customer to Customer upon approval of the Loan and disbursement of the Loan on the Disbursement Date.

4. Interest shall accrue on a daily basis on the total unpaid principal of the Loan commencing from the Disbursement Date until the Loan is repaid in full based on the actual number of days elapsed. However, the Service Provider at its discretion may change the interest rate from time to time by Notice to Customer. For avoidance of doubt, interest shall be calculated on the Disbursement Date on total amount of the Loan granted to the Customer.

   1. In the event that the Customer has not repaid the full amount of Loan (including interest and any fee payables under the Loan agreement) within four (04) calendar days from Pay Day, the Customer shall be required to pay a Late Payment Fee of Sri Lankan Rupees Two Thousand (LKR 2,000/-) (“Late Payment Fee”) as calculated in terms of the Clause 4.7 Such Late Payment Fee is only applicable if the total amount of outstanding payment including principal, interest and all the fees is more than Sri Lankan Rupees Two Hundred and Fifty (LKR 250/-).

   2. The Late Payment Fee shall be charged in the following manner:

   1. Firstly, Late Payment Fee shall be charged on the succeeding fourth (04) calendar day after the Pay Day;

   2. Secondly, Late Payment Fee shall be charged after the lapse of fourteen (14) calendar days after the Pay Day;

   3. Thirdly, Late Payment Fee shall be charged after the lapse of thirty (30) calendar days after the Pay Day.

REPAYMENT/PREPAYMENT OF THE LOAN

1. The Customer shall repay all amount due or payable in respect of the Loan (including but not limited to principal, interest, fees, charges or any expenses in accordance with this Agreement) under this Agreement to the Service Provider on the Pay Day.

2. The loan shall be repaid through Pay&Go Kiosks https://paygo.lk/KIoskLocations Full process is described here https://lotus.loan/repayment/

3. Alternatively the Loan shall be repaid by the Customer directly to bank account of the Service Provider, the details of which are set out below

   Account number: 0029 3003 4692

   Account name: Zephyr Solutions (PVT) LTD. Bank name: Sampath bank

   Branch name: Sampath Bank Head Office

4. Early prepayment shall be subject to consent of the Service Provider and only applicable if the at least half of the Loan tenure has passed and not earlier than seven (07) calendar days from the Disbursement Date;

5. Payments made by the Customer shall be applied in the priority order of: (i) interest (ii) the Service Fee (iii) principal (iv) overdue interest (v) the Late Payment Fee (vi) any other fees.

SERVICE FEE

The service fee under this Agreement consists of the fee payable by the Customer to the Service Provider for the services provided by the Service Provider including but not limited to evaluation, Loan management; and for other services provided by the Service Provider from time to time.

RIGHTS AND OBLIGATIONS OF THE SERVICE PROVIDER

The rights and obligations of the Service Provider are as follows

1. To decide the disbursement of the Loan as per the Customer’s request or confirmation via Notice to Customer;

2. To open and maintain books and records representing the details of the Loans, repayments, prepayments, the computation and payment of interest and other amounts due and sums paid which shall be conclusive and binding on the Customer as to the amount at any time due from the Customer, in the absence of manifest error in computation;

3. When serving the Notice to Customer, to record any contents exchanged in such communication between the Service Provider and the Customer, which shall be lawful evidence of such communication in case the Customer sends any request in relation to the Agreement via phone;

4. To request the Customer to fully pay any amount payable or due under the Agreement at any time that the Service Provider may deem it necessary.

5. To request the Customer to compensate for any damages, liabilities, claims, losses, expenses in relation to or arising from any transactions between the Parties under the Agreement;

   
   

6. To comply with the terms and conditions provided in this Agreement.

RIGHTS AND OBLIGATIONS OF THE CUSTOMER

The rights and obligations of the Customer are as follows:

1. To fully pay the total outstanding amount on the Pay Date as provided under the Loan Agreement;

2. To irrevocably agree with any amendments, changes to terms and conditions made by the Service Provider;

3. To undertake irrevocably and unconditionally be liable, compensate and ensure to keep the Service Provider indemnified against any liabilities, compensation, claims, damages, losses, expenses in relation to or arising from any transactions between the Parties under this Agreement.

REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS OF THE CUSTOMER

1. The Customer represents and warrants to the Service Provider

   1. the Customer has fulfilled the minimum conditions as specified in clause 3;

   2. the Customer’s data and all other information provided to the Service Provider and/or the Platform are complete true and accurate and not misleading in any respect;

   3. the Customer shall be legally liable for every forgery of, and the unauthorized use of, the Customer’s data provided by or on behalf of the Customer to the Service Provider or the Platform;

   4. the Customer has obtained all approvals, if any, from regulatory authorities or otherwise required to be obtained for the purpose of execution and performance of the Loan Agreement and enters into the Loan Agreement in good faith, without any intention of violating the applicable rules and regulations including but not limited to money laundering, tax avoidance and anti-terrorism regulations;

   5. the Customer is entering into this Agreement for and on his or her own behalf, freely and of his or her own accord without any duress or intimidation from any party and with full knowledge and understanding of its contents and consequences;

   6. the electronic signature of the Customer to this Agreement is valid and this Agreement constitutes the valid, legal and binding obligations of the Customer, enforceable against him/her in accordance with applicable law;

   7. the Customer is not required to withhold any tax or other amount from any payment of the Loan, whether for principal, interest or any other amount;

   8. the proceeds of the Loan shall be used solely for personal use and not for any commercial or business purpose;

2. The Customer hereby undertakes to

1. comply in all respect with all applicable laws in connection with the performance of the Customer’s obligations under this Agreement, and other relevant documents;

2. be liable for any request, notice, confirmation made by the Customer via phone and acknowledges and undertakes that such request, notice, confirmation shall create the lawful liabilities and be binding the Customer under this Agreement;

3. immediately inform the Service Provider upon any changes to the Customer’s information (including but not limited to any information related to Registered Phone Number, residence address and any other information may impact to the Customer’s repayment capacity).

EVENT OF DEFAULT

1. Each of the events or circumstances set out in the following sub-clauses is deemed to be an Event of Default

   1. The Customer does not comply with any provision(s) of the Agreement, and/or any relevant documents, including any failure to pay when due any principal, interest, fee or any other amount payable as and when it becomes due pursuant to the Agreement, and or any relevant documents;

   2. Breach of any obligation(s) of the Customer under this Agreement. Any breach of any obligation(s) of the Customer towards any third party providing the services in relation to granting the Loans under this Agreement shall be deemed as the breach of obligation of the Customer under this Agreement;

   3. Any representation or statement made or deemed to be made by the Customer in this Agreement and/or any relevant documents is incorrect or misleading in any material respect when made or deemed to be made;

   4. In the event of death or incapacitation (including insolvency or bankruptcy of the Customer;

   5. Any event or series of events occurs which, in the opinion of the Service Provider, is likely to have a material adverse effect on the Customer’s financial conditions and/or his ability to perform its obligations as stated in this Agreement.

2. On and at any time after the occurrence of an Event of Default which is continuing, the Service Provider is entitled to

   1. Declare all or part of the outstanding under the Loan, together with accrued interest, and all other amounts accrued or outstanding under this Agreement, to be immediately due and payable to the Service Provider;

   2. Send a written notice demanding from the Customer repayment to the Service Provider within fourteen (14) calendar days all monies owing to the Service Provider including interest and other payments under the terms and conditions of this Agreement.

      If the Customer fails to respond to the written demand of the Service Provider and/or repay to the Service Provider any portion of the monies payable by the Customer under and in terms of this Agreement within the said period of fourteen (14) days, then the Parties agree that the Service Provider shall be entitled to make an application to the Chairman of the Panel of the relevant Mediation Board area, for settlement of the same by mediation

   3. Terminate all obligations of the Service Provider under the Loan Agreement, and other relevant documents and

   4. Exercise all of its rights and remedies under the Loan Agreement, and other relevant documents.

3. The Customer expressly agrees and permits the Service Provider to use the services of a third party payment collector where any payment under this Agreement has been outstanding by the Customer for 90 (ninety) days following the Pay Day.

4. The Customer expressly agrees and permits that the Service Provider may assign or sell such payment claims in full or part thereof arising under this Agreement to a third party under a factoring agreement/arrangement where any payment has been outstanding by the Customer for 180 (hundred and eighty) days following the Pay Day.

5. The Service Provider shall be permitted to assign any of the Service Provider’s rights and obligations under this Agreement, or delegate the performance of any of their duties hereunder, to any third party, without any prior written consent or notice to the Client. The rights and obligations of the Customer hereto shall not be capable of assignment without the prior written consent in writing of the Service Provider, but subject thereto, shall enure to the benefit of and shall be binding on the respective successors

INDEMNITY

The Customer shall indemnify the Service Provider, its representatives, agents, nominees or assignees against any cost, loss or liability incurred by the Service Provider as a result of

1. The occurrence of any Event of Default;

2. The information produced or confirmed by the Customer being or being alleged to be incorrect and/or misleading and/or deceptive in any respect;

3. The occurrence of any enquiry, investigation or similar order or litigation with respect to the Customer or with respect to the transactions contemplated or financed under the Agreement, and other relevant documents;

4. All amounts due from the Customer under the Agreement (or any part thereof) not being prepaid in accordance with a notice of early prepayment given by the Customer in accordance with the clause 5 of this Agreement.

MISCELLANEOUS PROVISIONS