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.
-
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.
