Terms & Conditions

1. Definitions

• "Platform" refers to the Kova community savings and lending platform operated by Kishea Technologies.
• "Client" refers to the organization (SACCO, microfinance, VSLA, or corporate) providing savings and loan services to their members.
• "Member" refers to an individual eligible to save or receive loans through their associated Client.
• "Prefund Balance" refers to the funds deposited by the Client for loan disbursement purposes.

2. Client Obligations

• Clients must maintain a sufficient prefund balance before any loan can be disbursed to their members.
• Clients are responsible for verifying and uploading accurate member information and eligible loan amounts.
• Clients acknowledge that loan disbursements will be deducted from their prefund balance immediately upon successful disbursement.

3. Loan Terms and Charges

• Interest Rate: Each loan is tied to a configured Loan Product that defines its own interest rate and calculation method (Flat or Reducing). Rates are displayed when the loan product is selected.
• Processing Fee: Client-specific processing/insurance fees are applied on top of the product interest (default: UGX 2,000 unless your client profile overrides it).
• Disbursement Calculation: Client charges are withheld from the principal at payout. Interest is collected through scheduled repayments:
  Disbursement Amount = Principal − Client Charges
  Total Repayment = Principal + Product Interest
• Repayment Obligation: The member repays the principal plus product interest according to the installment schedule.
• Example: For a loan of UGX 50,000 on a 10% flat product:
  • Interest (Product Rate): UGX 5,000
  • Processing Fee (Client policy): UGX 2,000
  • Net Disbursement: UGX 48,000
  • Total Repayment Due: UGX 55,000

4. Repayment Terms

• All loan repayments are processed through the Platform's integrated payment system.
• Partial payments are permitted and will be applied to reduce the outstanding loan balance.
• Upon successful repayment, funds are immediately credited to the Client's prefund balance and may be reused for subsequent loan disbursements.

5. Member Eligibility

• Members may only apply for loans up to their pre-approved eligible amount as determined by their Client.
• All loan applications are subject to system verification and availability of Client prefund balance.
• The Platform reserves the right to decline loan applications that do not meet the stipulated criteria.

6. Data Privacy and Security

• All personal and financial information provided through the Platform is treated as confidential.
• The Platform employs industry-standard security measures to protect user data.
• By using this Platform, you consent to the collection, processing, and storage of your information as necessary for service delivery.

7. Liability and Disclaimers

• The Platform acts solely as a facilitator between Clients and Members for savings and loan management.
• The Platform is not responsible for disputes arising from member-client relationships.
• Users agree to indemnify and hold harmless the Platform from any claims, damages, or losses arising from their use of the service.

8. Compliance

• All Clients and Members must comply with applicable laws and regulations governing financial transactions in their jurisdiction.
• The Platform reserves the right to suspend or terminate accounts that violate these terms or engage in fraudulent activities.

9. Modifications

• The Platform reserves the right to modify these terms and conditions at any time.
• Continued use of the Platform after modifications constitutes acceptance of the updated terms.

10. Acceptance

By accessing or using this Platform, you acknowledge that you have read, understood, and agree to be bound by these Terms and Conditions.