Legal and Regulatory Statement

Legal and Regulatory Statement

Milestone Finance – Terms and Conditions of Loan Facilities
Registered Entity: Ingungu Investments (Pty) Ltd trading as Milestone Finance
Address: Office No. G0A, Omnicenter Building, Gwamile Street, Mbabane, Eswatini
Contact: Tel +268 7819 4463 | Email: service@milestone-finance.com

1. Introduction

1.1 These Terms and Conditions govern all loans and financial services provided by Milestone Finance (“the Company”) to its customers (“the Borrower”).
1.2 By applying for or accepting a loan, the Borrower agrees to be bound by these Terms and Conditions.
1.3 Milestone Finance operates under the laws and regulations of Eswatini, including but not limited to:

• The Consumer Credit Act, 2016
• The Financial Services Regulatory Authority Act, 2010
• The Data Protection Act
• Other applicable laws governing non-bank financial services in Eswatini.

1.4 These Terms and Conditions are legally enforceable through the courts of Eswatini.

2. Borrower Warranties and Eligibility

2.1 The Borrower warrants that they have the legal capacity and authority to enter into a legally binding loan agreement.
2.2 Borrowers must be at least 18 years old.
2.3 Borrowers must provide accurate, complete, and truthful information when applying for a loan.
2.4 All loans are secured on the personal assets of the Borrower, which may be used to satisfy outstanding obligations in case of default.
2.5 Borrowers may apply in person or online via the Milestone Finance website. Required documents may be uploaded electronically.

3. Loan Products, Terms, and Conditions

3.1 Personal Loans
• Source deduction: 5% monthly interest, repayment up to 36 months.
• Without source deduction:
  o E500–E4,000: 20% monthly interest, 3 months
  o E4,001–E8,000: 15% monthly interest, 6 months
  o Above E8,000: 10% monthly interest, 10 months

3.2 Business Loans
• Interest: 20% monthly, repayment maximum 12 months.
• Types: Asset Finance, Start-up Capital Loans (equity participation), Inventory/Stock Financing, Emergency Business Loans.

3.3 General Terms
• Loan amounts: E500–E50,000
• Maximum loan: 30% of net monthly income
• Service fees: E100/month (individual), E200/month (business)
• Late fees and cost recovery fees for overdue loans
• Early repayment allowed; interest recalculated daily

4. Interest Calculation and Billing

4.1 Daily Interest Accrual
• Interest accrues daily on the outstanding principal.
• Daily rate = Monthly interest ÷ Number of days in month.
• Interest recalculated after any repayment.

4.2 Monthly Billing
• Customers are billed once per month, with the statement showing total interest accrued plus principal.

4.3 Compounding on Default
• Overdue instalments accrue interest daily, including interest on previous interest, up to 100% of the original loan value.

5. Disbursement and Repayment

5.1 Loans are disbursed electronically to the Borrower’s bank account or mobile wallet.
5.2 Repayments via debit orders, bank transfer, mobile money, ATM deposits or other approved methods.
5.3 Borrowers must ensure funds are available for repayment.
5.4 Milestone Finance does not handle physical cash, payments and collections shall only be done through digital channels.

6. Security and Collateral

6.1 All loans are secured on the personal assets of the Borrower.
6.2 Milestone Finance may take possession of collateral in the event of default.
6.3 Borrowers agree that collateral may be sold to satisfy outstanding obligations.

7. Default and Debt Recovery

7.1 Default occurs when repayment is overdue by more than 7 days.
7.2 Debt recovery measures:
• Email/SMS reminders
• Payroll deductions or debit orders
• Legal recovery through the courts of Eswatini
• Registration with credit bureaus (blacklisting) for overdue balances over six months

7.3 Borrowers are responsible for all costs incurred in recovering overdue loans, including legal fees, administrative expenses, and collection costs.
7.4 In the event of non-payment, Milestone Finance will enforce its rights over collateral, register the debt with credit bureaus, and pursue legal action in the courts of Eswatini.