ChapMali Loan Contract

Contract Number: ChapMali-2026-XXXX

This Contract is entered into on ____________ (Date: ______ Day ______ Month ______ Year) by and between the following two parties:

Lender: FutureInno Digital Tech LTD (a company registered in the Republic of Kenya, Company Registration Number: PVT-ZQUX39KP; a Digital Credit Provider licensed by the Central Bank of Kenya (CBK), License Number: DCP-2025-136), operating under the brand name "ChapMali"; Registered Address: ________________________; Contact Email: contact@futureinno.co.ke (hereinafter referred to as the "Lender")

Borrower: ________________________ (Full Name), National ID Number: ________________________; Contact Phone Number: ________________________ (hereinafter referred to as the "Borrower")

WHEREAS the Lender is a legally registered Digital Credit Provider in Kenya, and the Borrower applies for a loan from the Lender for legitimate personal fund needs. Based on the principles of equality, voluntariness and good faith, the parties hereto enter into this Contract in accordance with the KenyaDigital Credit Providers Regulations 2022, Data Protection Act 2019, Financial Consumer Protection Act, Arbitration Act and other relevant laws and regulations, and both parties agree to be bound thereby.

1. Confirmation of Core Loan Terms (Consistent with Information on the ChapMali Application Page)

When the Borrower submits a loan application through the ChapMali app or website, the following terms displayed by ChapMali have been confirmed and acknowledged by the Borrower. These terms constitute the core content of this Contract and have the same legal effect as the information displayed by ChapMali:

Item	Specific Details
Loan Amount	KSh.________________________
Recipient Account Information	□ M-Pesa Number: ________________________ □ Other E-Wallet (Name: ________, Number: ________) □ Bank Account (Bank Name: ________________________, Account Number: ________________________)
Service Fee	KSh.________________________, calculated as ______% of the loan amount (not exceeding the maximum fee limit stipulated by CBK), which will be directly deducted upon disbursement of the loan
Transaction Fee	KSh.________________________, a third-party service fee incurred for fund transfer. The collection time shall be subject to the actual situation (deducted upon loan disbursement or collected upon repayment)
Interest Rate Standard	Daily Interest Rate: ______%; Annual Interest Rate: ______% (compliant with CBK interest rate control requirements, Annual Interest Rate ≤ 24%); Interest Calculation Method: Interest = Loan Amount × Daily Interest Rate × Actual Loan Days
Actual Disbursed Amount	KSh.________________________ = Loan Amount - Fees to be deducted upon disbursement (Service Fee + Transaction Fee if collected upon disbursement)
Interest Commencement Date	______ Day ______ Month ______ Year (subject to the date when the funds are actually credited to the Borrower's designated account)
Total Repayable Amount	KSh.________________________ = Loan Amount + Interest + Transaction Fee
Repayment Period	Repayment Date: ______ Day ______ Month ______ Year (calculated from the Interest Commencement Date)

The Borrower confirms that: He/She has carefully read and fully understood all the above terms, acknowledges that the loan information displayed by ChapMali is true and accurate, and voluntarily submits the loan application and accepts the binding of this Contract.

2. Warranties and Representations of Both Parties

2.1 Warranties and Representations of the Lender

• It has obtained the Digital Credit Provider License issued by CBK, possesses the qualification to legally grant loans, and strictly complies with the Digital Credit Providers Regulations 2022 and relevant regulatory requirements;
• It has fully disclosed to the Borrower core information such as loan interest rate, fee standard and repayment method, without any concealment or misleading statements. All fee items and standards comply with the pricing parameter requirements of CBK;
• Pursuant to the Data Protection Act 2019 and relevant regulations of the Office of the Data Protection Commissioner (ODPC) of Kenya, it will adopt security measures such as encrypted storage (AES-256 encryption algorithm), access permission control and security audit for the Borrower's personal information and transaction data; the data will only be used for contractual purposes such as loan review, fund transfer and repayment reminder; when sharing data with cooperative parties (payment service providers, licensed credit reference bureaus, etc.), it will sign a data processing agreement and require them to assume the same confidentiality obligations. Without the explicit consent of the Borrower or legal provisions, it will not share data with unrelated third parties;
• It will adopt legal and compliant debt collection methods and will not implement "debt shaming" behaviors prohibited by CBK (including but not limited to disclosing the Borrower's overdue information to irrelevant third parties, sending humiliating information, etc.);
• The retention of the Borrower's data shall follow the "principle of minimal necessity": loan-related information shall be retained for 3 years after the full settlement of principal and interest, and credit performance information shall be retained until the expiration of the statute of limitations (usually 6 years); upon the expiration of the retention period, the data will be anonymized, and the anonymized data may be commercially utilized in accordance with the law.

2.2 Warranties and Representations of the Borrower

• He/She has reached the age of 18, possesses full capacity for civil conduct, and is a legal resident of Kenya or holds a valid residence permit; confirms that he/she is aware that the Lender's services are not targeted at minors and that he/she is not a minor;
• The loan application materials submitted (ID card, contact information, occupation information, etc.) are true, accurate and complete, without any false statements or concealment of material facts; when personal information changes, he/she will promptly notify the Lender through "Personal Center - Settings - Feedback" in the ChapMali app or the Lender's customer service email;
• The purpose of the loan is for legitimate personal consumption or micro-business turnover, and will not be used for illegal or irregular activities such as investment, gambling and illegal transactions;
• Agrees that the Lender may inquire about his/her credit record through licensed Kenyan credit reference bureaus such as TransUnion Kenya and Metropol Credit Reference Bureau for loan review and post-loan management; agrees that the Lender may submit his/her performance record (including overdue record) to the credit reference bureau in accordance with the Data Protection Act 2019;
• Authorizes the Lender to verify the authenticity of the application information through third parties such as government agencies, employers and emergency contacts to improve credit assessment;
• Will properly keep the passwords of the ChapMali account and the recipient account, and shall bear all consequences arising from account operations; when discovering account abnormalities (unfamiliar login, non-personal application, etc.), he/she will immediately notify the Lender.

3. Loan Disbursement and Repayment

3.1 Loan Disbursement

After receiving the Borrower's application and completing the qualification review (usually no more than 24 hours), the Lender will deduct the relevant fees in accordance with Article 1 of this Contract and transfer the actual disbursed amount to the Borrower's designated account. The Borrower shall verify the credited amount within 48 hours after the funds are credited. If there is any objection to the credited amount, he/she shall contact the Lender for verification through contact@futureinno.co.ke; failure to raise an objection within the time limit shall be deemed as recognition that the credited amount is correct.

If the funds cannot be credited or are delayed in being credited due to the Borrower's own reasons such as incorrect account information provided or account freezing, the liability shall be borne by the Borrower, and the interest commencement date of the loan shall still be the date when the Lender successfully transfers the funds.

3.2 Repayment Methods

The Borrower shall fully repay the total repayable amount (the transaction fee already deducted upon disbursement does not need to be paid repeatedly) through the following methods before the repayment date agreed in Article 1 of this Contract:

• Online Repayment: Pay through the e-wallet, M-Pesa or bank account bound to the ChapMali app. The app will automatically calculate and split the principal, interest and unsettled fees;
• Offline Repayment: Transfer to the Lender's designated account (Account Name: FutureInno Digital Tech LTD; Bank Name: Commercial Bank of Kenya; Account Number: ________________________). When making the transfer, it is necessary to remark "Borrower's Full Name + Contract Number".

If the Borrower chooses to repay in advance, the interest shall be calculated based on the actual loan days; the already collected service fee will not be refunded, the unsettled transaction fee shall be paid in full, and the Lender will not charge a prepayment penalty.

3.3 Overdue Liability

If the Borrower fails to repay the full amount on the agreed date, overdue fees will be incurred from the date of overdue until the date when all amounts are settled. The annualized rate of comprehensive fees (interest + overdue fees) shall not exceed the pricing parameters set by CBK for this product, and the specific standards are as follows:

Fee Structure

The following fees apply to overdue payments. All percentage-based fees are calculated based on the Original Loan Amount:
• Late Payment Penalty: 1% of the Original Loan Amount per day.
• Management Fee: 1% of the Original Loan Amount per day.
• Breach of Contract Fee: 4% of the Original Loan Amount (applied as a one-time penalty).

Collection Process

• Overdue for 1–7 days: The Lender may conduct debt collection through legal methods, such as SMS and phone calls.
• Overdue for more than 7 days: The Lender reserves the right to submit the overdue information to licensed Kenyan credit reference bureaus.

• Overdue for more than 30 days and still not repaid after reasonable debt collection: The Lender has the right to pursue the Borrower's liability through litigation or arbitration, including but not limited to recovering the total repayable amount, overdue fees and all fees for realizing the creditor's rights such as attorney's fees and litigation fees.

4. Data Protection and Confidentiality Obligations

4.1 The scope of the Borrower's personal information collected by the Lender is limited to the information necessary for providing and managing the loan service, including but not limited to name, national ID information, contact information, credit record, account information, etc. The collection process complies with the "principle of minimal necessity".

4.2 The Lender adopts multi-level security measures such as HTTPS encrypted transmission, encrypted storage and access permission control to protect data security; in the event of a security incident such as information leakage, it will take actions and notify relevant parties in accordance with the provisions of the Data Protection Act 2019.

4.3 The Borrower has the right to exercise rights related to personal information (inquiry, correction, deletion, restriction of processing, withdrawal of consent, etc.) in accordance with the Data Protection Act 2019, and may submit an application through "Personal Center - Settings - Feedback" in the ChapMali app or customer service email. The Lender will verify and respond in accordance with the law.

5. Modification and Termination of the Contract

Any modification of this Contract (including adjustment of term, change of repayment method, etc.) shall be agreed upon by both parties through written negotiation and a supplementary agreement shall be signed. The supplementary agreement has the same legal effect as this Contract.

In case of any of the following circumstances, the Lender has the right to unilaterally terminate this Contract and require the Borrower to immediately repay all amounts:

• The Borrower uses the loan for illegal or irregular purposes;
• The Borrower violates other core obligations under this Contract and fails to correct them within a reasonable period after being notified by the Lender.

Before the loan funds are credited, the Borrower may apply to cancel the loan application through the ChapMali app. This Contract shall terminate from the date when the Lender confirms the cancellation, and the Lender will not charge any fees.

6. Dispute Resolution

This Contract is governed by the laws of the Republic of Kenya. Any dispute arising between the parties hereto in connection with this Contract shall first be resolved through friendly negotiation; if the negotiation fails, either party has the right to file a lawsuit with the Nairobi Commercial Court of Kenya.

If the Borrower believes that the Lender has engaged in irregular operations (such as excessive interest rate, malicious debt collection, illegal processing of personal information, etc.), he/she may file a complaint with the CBK Consumer Complaints Department or ODPC. The complaint channels shall be subject to those officially announced by the regulatory authorities.

7. General Provisions

This Contract shall take effect from the date when the Borrower confirms and submits the loan application through ChapMali, and shall terminate on the date when the Borrower fully repays all payable amounts (including principal, interest, fees, overdue fees, etc.).

The Lender shall provide an electronic version of this Contract to the Borrower. To obtain a copy of this Contract, you may submit an application through the official customer service email (contact@futureinno.co.ke), and we will provide it within a reasonable time. The electronic contract has the same legal effect as the paper contract.

Matters not covered by this Contract shall be handled in accordance with relevant Kenyan laws and regulations.

8. CBK & CRB Reporting Statement

Your data will be reported to Kenya's licensed Credit Reference Bureaus (CRBs) when you successfully obtain a loan. The submitted fields are as follows:

Category	Data Fields
Personal Data	Surname, Forename 1/2/3, Date of Birth, Gender, Nationality, Primary ID Type and ID Number, Mobile Phone Number
Basic Loan Data	Account Number, Account Product Type, Original Amount, Facility Currency
Financial Data	Current Balance, Overdue Balance, Instalment Amount
Arrears & Status Data	Days in Arrears, Instalments in Arrears, Account Status, Prudential Risk Classification
Payment Records	Date of Latest Payment, Last Payment Amount

In compliance with CBK rules, we report loan data on a daily and monthly basis. We will notify you via SMS within 30 days after your credit information is first reported to a CRB. Overdue amounts not exceeding 1,000 Kenyan Shillings will not be reported as negative credit information. If adverse records are to be reported, you will receive 7 days' pre-notice via SMS before such reporting. Credit records are retained by CRBs for up to 5–7 years as required by law, depending on the nature of the information.

No data will be transmitted to CRBs if you do not obtain a loan.

You have the right to access your credit report from any licensed CRB and dispute any inaccurate information. Your personal data stored in our services will be automatically deleted within 90 days after your account is closed, subject to legal retention requirements for credit information.

(No text below)

Lender (Seal): FutureInno Digital Tech LTD

Authorized Representative (Signature): ________________________

Date: ______ Day ______ Month ______ Year

Borrower (Signature): ________________________

Date: ______ Day ______ Month ______ Year