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Loan Terms and Conditions

TERMS & CONDITIONS OF PRE-QUALIFICATION ASSESSMENT

By agreeing that you have read the terms and conditions you consent and understand the following:

  • This pre-qualification assessment is subject to a full affordability assessment and credit check.
  • You are aware that this pre-qualification does not mean You will receive a loan from Real People Home Finance (Pty) Ltd based on the outcome of this assessment.
  • Real People Home Finance (Pty) Ltd reserve the right to do a Credit Bureau enquiry.
  • You confirm that You are not currently under administration, sequestration or debt review nor have You applied for administration, sequestration or debt review.
  • You confirm that the ID number You have entered is Your own.
  • You confirm that the basic income is correct.
  • This pre-qualification is valid for 7 days from date of the pre-qualification assessment.

 

TERMS & CONDITIONS OF LOAN AGREEMENT

RPHF T&C LOAN AGR 2017/02/20 V1.7

1. Interpretation

In this Agreement:

1.1 "the Act" means the National Credit Act, 34 of 2005;

1.2 "Advance Date" means a request for payment made by the You under a FlexiBuild Product as more fully referred to in Appendix B;

1.3 "Annual Interest Rate" means the annual interest rate set out in the Quotation;

1.4 "Application" means the application for the loan made by You, either electronically, telephonically or face to face;

1.5 "Deferred Amount" means the Loan Amount and any relevant fees and/or charges that are, or become, payable by you from time to time;

1.6 "Designated Bank Account" means the bank account details in Section 7 of the Quotation which have been given by You to RP;

1.7 "Enforcement Expenses" means all legal costs which RP has to incur in order to enforce its rights under the Loan Agreement and which RP may recover in accordance with prevailing Law;

1.8 "Flexibuild Product" means the Loan Product which may be selected by the You in the Application in terms of which the Loan Amount approved is paid to You as and when required by You (but always at the sole discretion of RP) as more fully detailed in Appendix B;

1.9 "Law" means common law, legislation, regulations and any subsidiary legislation, prevailing from time to time in South Africa;

1.10 "Loan Agreement" means the Application, the Quotation and these Terms and Conditions to be read together as one document;

1.11 "Loan Amount" means the amount advanced to You in terms of the Loan Agreement as contained in the Quotation;

1.12 "Merchant" means third party creditor/s from whom You wish to purchase building materials or building contractor services;

1.13 "MMS" means multi-media messaging service;

1.14 "Payment Date" means the date on which the Loan Amount or any part thereof is paid into the Designated Bank Account;

1.15 "Personal Information" has the same meaning as per the definition of Personal Information in Section 1. of the Protection of Personal Information Act 4 of 2013.

1.16 "Quotation" means the Pre-Agreement Statement and Quotation to which these Terms and Conditions are attached;

1.17 "RP, We, Our, Us" means Real People Home Finance (Proprietary) Limited;

1.18 "Repo Reference Rate" means the repurchase rate set out from time to time by the South African Reserve Bank;

1.19 "Sanction Bodies" means the Office of Foreign Assets Control of the Department of Treasury of the United States of America, the United Nations Security Council, Her Majesty's Treasury of the United Kingdom, the European Union and/or any other similar body established in terms of any legislation of the Republic of South Africa;

1.20 "Sanctioned" means listed on all or any one of the Sanction Lists and/or subject to any Sanctions as prescribed by any Sanction Body;

1.21 "Sanction List" means the Specially Designated Nationals and Blocked Persons List of the Office of Foreign Assets Control of the Department of Treasury of the United States of America and/or the United Nations Security Council list of persons or entities suspected to be involved in terrorist related activities or the funding thereof and/or any other list of Her Majesty's Treasury of the United Kingdom and/or the European Union's Common Foreign and Security Policy and/or any similar Sanction lists established in terms of any legislation of the Republic of South Africa;

1.22 "Settlement Value" means the amount you would need to repay us on any particular date in order to satisfy all of your obligations in terms of the Loan Agreement;

1.23 "SMS" means short message service;

1.24 "Specified Purpose" means the purpose of the building, renovation, rehabilitation or expansion of the residential property, with a specific emphasis on low income housing, it being recorded that this is the only purpose for which the Loan Amount shall be used.

1.25 "Terms and Conditions" means the terms and conditions of the Loan Agreement contained herein;

1.26 "USSD" means unstructured supplementary service data;

1.27 "VAT" means Value-Added Tax;

1.28 "Working Day" means a day of the week other than a Saturday, Sunday or any other public holiday recognized as such by the Government of South Africa;

1.29 You/Your or Yourself" means the person or persons named in the Quotation as the Borrower, including the executor of your estate on your death and the liquidator on your sequestration;

1.30 Any reference to one gender shall be deemed to include the other and any reference to the singular shall include the plural.

1.31 All other language versions of this Agreement are translated from the English version so, in the event of any dispute involving the interpretation of this Agreement, the English version shall prevail in this regard.

2. Loan Product

We offer a number of loan products. The Loan Product which You have chosen in Your Application is detailed in the Quotation which is based on that Loan Product.

3. Loan Agreement

After assessing Your Application, We have agreed to lend You the Loan Amount reflected in the Quotation on the terms and conditions set out herein.

4. Initiation Fee

You confirm that You have been offered the choice of either paying the Initiation Fee upfront separately or including it as part of the Loan Amount, in which case, it will be included as part of the Loan Amount for purposes of calculating instalments and will be payable over the term of the Loan Agreement. Should You elect to pay the Initiation Fee upfront separately but fail to do so by the date the Loan Agreement is concluded, the Initiation Fee, or any part thereof, shall be deemed to have been added / deducted from the Loan Amount.

5. Payments

All payments shall be made unconditionally and without deduction or set-off in terms of Debit Order. Payments will be allocated firstly towards payment of any due or unpaid interest, thereafter any due or unpaid fees or charges (including legal costs, if any) and lastly the Loan Amount.

6. Interest

6.1 Interest rates as set out in the attached Quotation are variable and are calculated daily and capitalised monthly in arrears on the outstanding Loan (or any other Deferred Amount). Such interest rates vary according to a prescribed sum involving the Repo Reference Rate and a percentage rate ("the Prescribed Sum"). The maximum Prescribed Sum is as per the "Sub-sector" (agreement type), relevant to this Agreement as at the conclusion thereof, as set out in Table A: Maximum Prescribed Interest Rate in Regulation 42 of the Act.

6.2 Should a change occur due to a change in the Repo Reference Rate, RP will adjust the applicable interest rates, according to the effect of such change on the Prescribed Sum, and notice thereof will be given in writing to You by no later than 30 business days after the day on which any such change takes place.

7. Cash for Labour

7.1 You may request that a portion of the Loan Amount be paid by RP to You, in cash, when purchasing building materials ("Cash Portion").

7.2 The Cash Portion must only be used to pay for labour and/or other building materials related to the Specified Purpose.

7.3 Where approved, the Cash Portion will be paid by RP into the Designated Bank Account.

7.4 The total value of the Cash Portion cannot exceed 30% of the Loan Amount and the initial Cash Portion requested may not be less than R500.00.

8. Instalment

The number of instalments and commencement date of the 1st instalment presumes that the 1st instalment will be paid by You on the first pay date after the Loan Amount was advanced. A delay in making payment of the first instalment may result in extra instalments and costs. You hereby consent to any additional instalments and/or costs which may result from a delay in payment and to such amount being received by RP.

9. Early Repayment

You are entitled, at Your election, in terms of Section 126 of the NCA, to terminate this Agreement at any time by paying the Settlement Value to Us. No fee or penalty will be payable for early repayment.

10. Default

10.1 You are in default of the Loan if You:

10.1.1 do something You have agreed not to do or do not do something You have agreed to do, under the Loan Agreement;

10.1.2 give Us incorrect, misleading or deceptive information in connection with this Loan Agreement;

10.1.3 have acted fraudulently or dishonestly in connection with this Loan Agreement; or

10.1.4 commit a breach of any of the declarations provided by You to Us;

10.1.5 fail to make payment of any amount due in terms of the Loan Agreement.

10.2 If You are in default, We will give You a written notice advising You of the default in the manner and at the address which you have elected in the Application and advising You that You may refer the matter to an alternative dispute resolution mechanism or resolve it with Us or if You cannot pay Your debts to apply to a debt counsellor.

10.3 If You get a notice to remedy the default, the notice will specify the time you have to do so. If You do not or are unable to remedy the default within the time period specified in the notice, and You do not elect to utilise any other alternative means to resolve any dispute then the Settlement Value under the Loan Agreement will immediately become due for payment to Us.

10.4 If You remain in default after the notice, We will then be able to institute action for payment of the Settlement Value provided that You have been in default for at least 20 working days and provided that at least 10 working days have elapsed since We provided written notice to You of the default. You will be liable to pay Us Enforcement Expenses and collection costs allowed in terms of the Act in the event of a default.

10.5 In addition, upon the occurrence of a default, We will charge the default interest rate set out in the Quotation on any amounts due, owing and payable to Us from the date that it became due for payment, to the date of payment thereof.

10.6 We may submit an adverse report of Your default to a credit bureau, setting out particulars thereof. If this is the case at least 20 business days written notice will be given to You prior to reporting any adverse information to a credit bureau and You will be entitled to a copy of the adverse report upon request thereof.

11. Early Termination

11.1 RP reserves the right, in terms of section 123 of the Act to terminate this Agreement and proceed with legal proceedings in terms of section 129(1)(b) and section 130(1) of the Act, which proceedings may result in a Court enforcing the repayment of Your obligations in terms of this agreement. Any judgment of such Court, shall be recorded by credit bureaux and be available to other credit providers.

11.2 RP shall be entitled to recover from You all attorneys and registered debt collector's costs on the attorney and client scale or prescribed tariff applicable to debt collectors. Such costs may include collection commission at 10% on each payment received from You and also, if applicable, the 5% commission due to Your employer in terms of section 65 J (10) of Act 32 of 1944. You shall be liable for default administration costs in respect of each letter sent to You in terms of Part C of Chapter 6 of the Act, as read with Regulation 46.

11.3 In terms of section 122 of the Act You may terminate this Agreement at any time by paying the Settlement Value to RP in accordance with section 125 of the Act.

12. Declaration

You hereby declare that You are not and have never been:

12.1 insolvent;

12.2 placed under an Administration Order;

12.3 (or are currently) subject to a debt rearrangement or have any pending application for a debt rearrangement order that precedes Your Application for Credit herein.

13. Statements

13.1 RP shall provide a statement of account to You on or before the last day of every third month for the duration of the Loan either by way of MMS, SMS, USSD or email, which timing and manner of delivery You hereby acknowledge and agree to. You choose any of the modes of delivery/service in clause 19 as a manner of delivery/service of any and all statements, notices and documents, other than for a Default Notice in respect of which the provisions of Clause 10.2 will in addition apply.

13.2 You hereby consent that RP may send e-mails/ SMS/MMS/USSD to Your computer/cellphone with regard to Your outstanding balance(s), when Your instalment is due and payable, when You are in arrears with Your payments and other related matters.

14. Electronic Format

You agree that this Loan Agreement may be converted to an electronic format and the paper version destroyed. You understand and agree that the electronic version shall be the authentic version unless You prove otherwise.

15. Benefit Payments

15.1 If, as a result of Your temporary disablement, or for any other reason, payment of Your salary by Your employer is temporarily suspended, then, if applicable, You shall ensure that any insurer or third party which is paying a benefit in lieu of the suspended salary to You or on Your behalf, deducts from such benefit and pays to Us any amount due in terms of the Loan Agreement during the period concerned.

15.2 Should such insurer or third party fail to make payment to Us, then we will be entitled, after having provided You with written notice requesting payment of the Settlement Value within 20 days, to terminate the Loan Agreement and claim payment of the Settlement Value.

16. Spouse

In the event that You are married in community of property, Your spouses' consent is required to enter into this Loan Agreement, and You warrant that Your spouse's requisite consent, if any, was obtained and will be provided within a reasonable period after a request is made for same. You indemnify RP against any Loss it may suffer as a result of a failure to provide such aforesaid consent.

17. Credit Bureaux Reporting

You consent that RP may at its sole discretion for purposes of conducting an affordability enquiry and/or updating RP's records obtain from and disclose to, any third party [including but not limited to a Credit Bureau, the national loan registry, any employee or agent of RP and Your employer] Your credit and loans record, payment history and current loan status.

17.1 Should You not wish for the information to be obtained or disclosed for the aforesaid purpose, You may elect to not proceed with this Agreement.

17.2 RP is obliged to supply certain information to the national loan registry and the Credit Bureau pertaining to this loan, which may include information on non-compliance with the terms and conditions contained herein.

17.3 The Credit Bureau provides a credit profile and a credit score on You based on the information supplied. The "Credit Bureau" referred to herein are TransUnion ITC Credit Bureau, XDS and Experian (contact details in clause 28).

17.4 You have the right to contact the Credit Bureau referred to above, have Your credit record disclosed and correct any inaccurate information.

18. Cession

You hereby consent to the cession and/or assignment by Us of all or any of Your rights and/or obligations under this Loan Agreement to any one or more third parties, despite any resultant splitting of claims against You;

18.1 any personal information may be transferred to such third party for purposes of the cession and in line with the purpose and contents in the Loan Agreement; and;

18.2 that the retention and use of the above personal information may occur for as long as it is required by RP/ third party for such purposes.

19. Contact Details

19.1 You choose as the address for acceptance of delivery and/or service of documents and/or notices and/or legal process the address and methodology supplied in the Application and which is also indicated in Section 1 on Page 1 of the Quotation.

19.2 The contact details for RP are those listed on the front page of the Quotation.

19.3 The Parties shall be entitled to change their chosen addresses by written notice delivered by hand or posted by registered mail to the current chosen address of You or RP as the case may be.

19.4 You undertake to notify RP in writing, within 30 days, of any change of the Your physical residential address and/or employment. Should You fail or neglect to fulfil such obligation, RP shall be entitled to instruct a tracing agent to find such information and You shall be liable to pay for the tracing fees that are incurred to rectify any breach of such undertaking. Furthermore the Borrower acknowledges that a failure to meet the aforesaid obligations will frustrate any attempt to serve Notices & Legal process and therefore agrees that any notice/return of non-service in respect of such attempts will interrupt the running of any relevant prescription period, in terms of the Prescription Act 68 of 1969, until the correct current physical residential, or other appropriate, address of the Borrower has been obtained/received by RP.

20. Certificate of Indebtedness

RP shall, at its own instance, be entitled to produce a certificate signed by a director of RP, confirming the amount which is due and payable by You to RP. The certificate shall be proof on the face of it of the allegations stated therein, and You shall bear the onus of disproving the contents of the certificate. You acknowledge that such certificate shall be valid and enforceable for the purposes of summary judgment and default judgment proceedings.

21. Debt Counsellor

You have the right to apply to a debt counsellor, in the manner and form prescribed by section 86 of the Act, for debt review so as to be declared over-indebted. The aforesaid application may not be made if RP has already taken steps to enforce the Loan Agreement. A list of all registered debt counsellors can be obtained from the National Credit Regulator's office.

22. Alternative Dispute Resolution

In the event of any dispute regarding a possible contravention of the Act You may elect to either:

22.1 Resolve the complaint by way of an alternative dispute resolution agent registered and accredited by the National Credit Regulator; or

22.2 Initiate a complaint to the National Credit Regulator (See contact details in clause 28); or

22.3 Initiate a complaint to the Consumer Tribunal.

23. Changes required by law

If there is any change to a Law that requires Us to conduct Our business of providing loans differently from that contemplated under this Loan Agreement, We shall be entitled to make such changes to this Loan Agreement as are required to comply with the Law. We will give You appropriate written notice of such changes. Such changes will be effective from the date stated on such written notice.

24. Use of Personal Information

24.1 You understand and agree that We are in possession of information that identifies You (Your "Personal Information") to:

24.1.1 verify Your identity and accuracy and completeness of the information You provide to Us;

24.1.2 open, administer and service this Loan Agreement;

24.1.3 statistical analysis;

24.1.4 to develop and improve Our products;

24.1.5 update Your records;

24.1.6 to identify which of Our, or others' products might interest You.

24.2 You understand and agree that we are in possession of Personal Information relating to Yourself and you agree that such Personal Information can be used to:

24.2.1 carry out the functions referred to in 24.1 above;

24.2.2 assess lending and insurance risks;

24.2.3 arrange, underwrite and administer insurance and handle claims;

24.2.4 identify, prevent, detect or tackle fraud, money laundering and other crime;

24.2.5 carry out regulatory checks;

24.2.6 keep You informed about Your Loan and conduct market research. Unless You opt out, by emailing Us accordingly or in the "opt out" box contained in the Application, We may also use Your Personal Information to contact You by mail, telephone, email, SMS or other method permitted by Law in relation to offers We may feel might interest You and/or in terms of Our Privacy Policy;

24.2.7 any other purpose agreed to by You in the Application.

24.3 We will keep your Personal Information confidential and only give it to others for the above purposes, including:

24.3.1 to our agents and subcontractors, acting for us, to use for the purpose of operating our lending business and obtaining payment in terms of this Loan Agreement or any other agreement You have with Us;

24.3.2 to share information via organisation/s which provides a centralised application matching service which it collects from and about mortgage and/or credit applications, for the purpose of preventing and detecting fraud;

24.3.3 to financial institutions or payment distribution agencies for purposes of payment processing;

24.3.4 unless You opt out by emailing Us or in the opt out box in the Application, to third parties who may use it to contact You by email, telephone, mail, SMS or other method permitted by Law in relation to offers they feel might interest You; and;

24.3.5 in connection with certain business transactions involving Our assets or business as further described in Our Privacy Policies.

24.4 We and other organisations may access and use the information recorded by fraud prevention agencies such as the South African Fraud Prevention Services ("SAFPS").We may provide details, including your personal information, to SAFPS with regard to any conduct on your Loan Account that gives Us reasonable cause to suspect that the Loan Account is being used for improper purposes. The SAFPS may in turn make this information available to other members of the SAFPS if they carry out credit and/or other checks on Your name.

24.5 We may transfer Your Personal Information abroad to countries whose data protection laws are less strict than in South Africa. If so, We will ensure the information is held securely to standards at least as good as those in South Africa and only used for the purposes set out in this clause.

24.6 We may provide your information to third party Funders of Our business in order for them to verify undertakings related to such funding. You hereby also consent to such third party Funder (including their agent or representative) contacting you to personally verify any such aforesaid undertakings.

24.7 Your Personal Information may also be used for other purposes for which you give your permission or, in very limited circumstances, when required by any relevant Law.

24.8 Your Personal Information is held subject the Privacy Policy of RP and the applicable Law.

25. Compliance

25.1 RP has in the drafting of this Loan Agreement used its best endeavours in order to comply with all applicable Laws. To the extent that this Loan Agreement may require amendment in order to comply with any particular Law, You by Your signature hereto agree to such amendment which will be set out in a schedule to this Loan Agreement to the extent applicable.

25.2 The amendments referred to in 25.1 will be effected from the date of notice of amendment or the date of the schedule setting out the amendments.

26. Jurisdiction

You consent to the jurisdiction of the magistrate's court with jurisdiction in respect of any action or proceedings which may be brought against You; provided that We will be entitled to bring proceedings in the High Court where such proceedings would, but for the aforegoing consent, fall outside the jurisdiction of the magistrate's court.

27. General

27.1 The Loan Agreement is the entire agreement between the parties relative to the subject matter hereof and replaces all representations, warranties, agreements or undertakings previously made relative to such subject matter, and no such representations, warranties, agreements or undertakings shall be of any force and effect unless contained herein. No indulgence, extension of time, relaxation or latitude which RP may show, grant or allow to You shall constitute a waiver by RP of any of its rights and RP shall not thereby be prejudiced or prevented from exercising any of its rights against You which may have then already arisen or which may thereafter arise, and/or applying/ enforcing the terms of this agreement.

27.2 No variation of any of the terms and conditions of this agreement will be binding on the parties unless committed to writing and signed by them respectively.

27.3 Should any provision or portion of this Agreement be unenforceable by Law, void or voidable, such provision shall be severable from the remaining provisions hereof which shall remain in full force and effect.

28. Contact Details

Contact Details of Relevant Entities:

TransUnion Credit Bureau, Tel: (011) 214 6000; XDS Tel: (011) 645 9100;

Experian, Tel: (011) 799 3400; National Credit Regulator, Tel: 0860 627 627;

National Consumer Tribunal, 0860 627 627; Compuscan, Tel: 0860 51 41 31

29. Your Undertakings

By signing this Loan Agreement, You:

29.1 accept all of the terms and conditions of the Loan Agreement;

29.2 agree to be bound by all of the declarations and terms contained in the Loan Agreement and those contained in the Application;

29.3 declare that all of the information that You have given now and previously, including but not limited to the declarations provided in the Application, is true, accurate and correct in all respects and is not misleading or deceptive in any way;

29.4 acknowledge that We are relying on the information that You have given Us;

29.5 acknowledge that the Loan Agreement has been explained to You and You understand and appreciate the risks, costs, rights and obligations in the Loan Agreement;

29.6 acknowledge that You received and carefully considered a copy of the Loan Agreement and all other documents that need to be signed and returned to Us in order to accept this offer before You signed these documents;

29.7 unconditionally absolve and indemnify Us from and against any Loss, damage, costs or expenses which either We or You may sustain or incur, either directly or indirectly as a result of Our relying on and using the banking details and or any information supplied to it by You or on Your behalf, in order to pay the proceeds of the Loan;

29.8 agree that We will not be liable in respect of any errors or omissions from any particulars given to Us by You or on Your behalf;

29.9 understand and accept that all other documentation signed by You in connection with this Loan Agreement (including the Application and Quotation) forms part of the Loan Agreement, as if it had been specifically incorporated herein;

29.10 understand and agree that We rely on the correctness of all the information provided by You and not responsible for the consequences of any error or omission contained therein and You hereby indemnify Us against any claim and/or damage whatsoever arising from such error or omission;

29.11 agree and consent to Your Personal Information being forwarded to the National Credit Regulator and/or any other credit bureau insofar as this Loan Agreement is concerned.

29.12 You declare, warrant and undertake to RP from the date of signature of this Loan Agreement, and until all Your obligations in terms of the Loan Agreement have been fully discharged, i.e. the Loan Agreement ceases to be of further force and effect, that:

29.12.1 You will not use, or otherwise make available, any of the proceeds of the Loan Amount for the purposes of financing, directly or indirectly, the activities of any person or entity which is Sanctioned or, to finance, directly or indirectly, any undertaking in a country which is subject to any Sanctions;

29.12.2 You will not, in any way, make any of the proceeds of the Loan Amount available to any person or entity if such party will use, or intends to use, such proceeds for the purposes of financing the activities of any person or entity who/which are subject to any Sanctions; and

29.12.3 You are not involved in any illegal activities including, but not limited to, money laundering or terrorist activities.

29.13 Any breach of any undertaking in 29.12 will be deemed to be a material breach/default of this Loan Agreement. In the aforesaid circumstances, RP shall be entitled, in its sole and absolute discretion, to immediately cancel this Agreement and the Settlement Value shall then become due, owing and payable. RP shall further be entitled to recover any Enforcement Expenses and other collection costs that may be allowed in terms of the Act in the event of such a default.

30. The Minister of Trade and Industry ("the Minister") is empowered in terms of section 171(1) of the Act to, inter alia, review and limit NCA fees, cost or charges, such as the Monthly Service (see Quotation/Loan Schedule in part 2. on Page 1 of the Quotation & Loan Agreement), that may be charged by credit providers in terms of the Act. Should the Minister, during the operation of this Loan Agreement, amend any NCA fee, cost or charge, such as the aforesaid fee, You hereby agree that RP may increase such fee accordingly from time to time, as well as any other fees, costs and charges that may change. RP will give You at least five (5) business days' notice before it makes any change to any NCA fees, costs and charges.

12. DEBIT ORDER CLAUSE

1. I/We hereby authorise Real People Home Finance (Pty) Ltd ("RP") to debit my Designated Bank Account, being the bank account as set out in Section 7. on page 3, with the repayment instalment amount as set out in the Loan Schedule in Section 2. on page 1, as read with Part 4. of Section 4.

2. The Repayment Cycle is the Pay Frequency, and the Repayment Day is the Pay Date, as set out in Section 7. on Page 3. (The Repayment Day is the date on which You would like to have the debit order go through and this date must be the same as Your salary Pay Date. It should also be on or before the date by which you need to make a payment in terms of this Loan Agreement).

3. I/We know and agree that the repayments I/We have to make under the Loan Agreement are due, owing and payable on or before the date given in the Loan Agreement or any extension or amendment of the Loan Agreement.

4. I/We will make sure there are enough funds in My/Our Designated Bank Account on the Repayment Day. I/We agree that if there are not enough funds in My/Our Designated Bank Account, RP may track my account (at no extra cost to me) every day until I/We have paid off everything I/We owe for that repayment cycle or until I cancel this authority (if I/We do so).

5. I/We know and agree that if RP learns that my Salary Date has changed, RP may debit My/Our Designated Bank Account on that date. In the absence of the aforesaid notification from yourself, RP will be entitled to assume, where your repayment day falls on a weekend or public holiday, that your salary date (and thus repayment day) has moved to the business day immediately before the original stated repayment day.

6. I/We agree to let RP know of any changes to My/Our Salary Date or the date on which there are enough funds in My/Our Designated Bank Account to cover the repayment amount.

7. I/We also agree that if any payment does not go through because there are not enough funds in My/Our account, or for any other reason, it will be a default under the Loan Agreement, meaning I have broken the Loan Agreement. The total amount that I/We repay under this authority will never be more than the amount I/ We agreed to in the Loan Agreement.

8. I/We agree to pay any bank charges for this debit order authority and instruction (if any).

9. Before RP sends any payment instructions through, a debit order reference number (unique to this Loan Agreement) will be sent to Me/Us. An example of the debit order reference that will appear on your Designated Bank Account Statement: REALPEOPLE12345678911111. That way I/We can identify the repayment mounts for this Loan Agreement on the Designated Bank Account statement

10. I/We agree that, although I/We may cancel this authority and mandate, it will not cancel the Loan Agreement. I/We also understand that I/We cannot claim back amounts that RP has withdrawn from My/Our Designated Bank Account (i.e. amounts that I/We have paid) under this authority and mandate if I/We legally owed those amounts to RP.

11. I/We know, and hereby agree, that RP may cede or assign (give) this authority and mandate to a third party if RP has also ceded or assigned the Loan Agreement to that third party.

13. CREDIT PROTECTION POLICY

1. You are required by RP to provide a credit protection policy as cover for the outstanding balance on your loan in the event of your Loss of Income from employment, death, temporary and permanent, disability (as described in the policy summary that will be provided to you)

2. You may choose to apply for the cover arranged by RP with Real People Assurance Company Limited ("Real People Assurance") or you may provide a policy of your choice, from another insurer, that provides sufficient cover. By your acceptance of the terms and conditions of this Quotation & Loan Agreement and signature hereto you acknowledge that you are aware of and understand this freedom of choice and that you hereby elect and accept the credit protection policy as set out in this Section D as well as Appendix A hereto. In the event that you arrange the required credit life insurance with any other insurer, you undertake to sign the authority provided for in terms of Section 106(6)(b) of the National Credit Act 34 of 2005 in order to authorise RP to make payment of your insurance premiums on your behalf to your insurer should RP elect to do so.

3. In the event of your Loss of Income from employment, death, temporary and permanent, disability Real People Assurance will pay to RP, as your beneficiary in terms of the policy, an amount equal to the outstanding balance on your loan, being the capital sum advanced to you plus interest thereon, less any repayments made. Should you be retrenched, all the obligations under the Finance Agreement that become due and payable during the remaining repayment period of the Finance Agreement: for a period of 12 months or until the consumer finds employment or is able to earn an income; whichever is the shorter period.

4. Waiting Period: ( Refer to 6.2 Appendix A)

5. A monthly premium, as specified in the Quote Loan Schedule on page 1 of the Quotation & Loan Agreement, will be payable in respect of the credit protection policy. Real People Assurance has mandated RP to collect such payments on its behalf in terms of a written agreement between Real People Assurance and RP.

PLEASE NOTE THAT IF YOUR MONTHLY PREMIUM IS INDICATED AS "0.00" THIS WOULD MEAN THAT A CREDIT PROTECTION POLICY HAS NOT BEEN ISSUED AND THAT YOU DO NOT HAVE ANY CREDIT PROTECTION COVER OR BENEFITS WITH REAL PEOPLE ASSURANCE.

6. Important terms re premium payments:

• You may miss the payment of up to 6 (six) premiums during the term of the policy. Upon non-payment of the 7th (seventh) premium the policy will lapse and no benefits under the policy will be payable.

• Should 6 (six) premiums or less be unpaid at the time of a claim being submitted in terms of the policy, an amount equal to the missed premiums will be deducted from any benefit payable in terms of the policy.

• Should you only commence payment of your monthly instalment (including the credit life insurance premium) during the month following the month during which the loan was advanced to you, RP shall be entitled to pay over in advance your credit life insurance premium in order to ensure that you are insured from when the loan is paid out.

• You will, however, be liable to RP for any premiums paid over in advance by RP to Real People Assurance, and where the corresponding payment is not received from you on its due date as arranged with RP, as you have been enriched by such payments. You hereby consent to such aforesaid amounts being recovered from you by RP.

• You hereby mandate RP, until all your payment obligations in terms of this Agreement have been settled in full, to pay, at its sole and absolute discretion, your premiums on your behalf. You hereby acknowledge such aforesaid entitlements of RP to pay such premiums and, as you are enriched by such payments, RP shall be entitled to recover such amounts from you together with any outstanding amount on your loan repayment.

7. Complete terms and conditions are set out in the policy that will be provided to you, please read through carefully. Note that there are certain events excluded from cover. Should you have any queries, please contact us at 086 111 4803.

8. The Borrower hereby cedes, assigns and makes over all his/her rights, title and interest in and to this insurance to RP as security for the repayment of the loan granted by RP to the Borrower. The Borrower hereby authorises RP to complete and sign any claims documentation on his/her behalf and obtain any information or documentation required in terms of the policy for claims purposes from the person in possession of that information.

9. In the event of you providing a credit protection policy of your own choice, from an insurer other than Real People Assurance, you agree the following:

9.1 RP will be paid by your insurer all monies owed (up to the settlement value) on an event of an insured event occurring. E.g. death, disability, etc.

9.2 Your insurance company, in terms of the credit protection policy, must be obliged to first settle your relevant obligations under this Agreement, before any other claims, from the proceeds of such policy.

If necessary RP may, on your behalf and in your stead, contact the relevant Insurer and instruct them to ensure that 9.1 and 9.2 above are complied with in terms of your undertakings in terms of this clause 9. Section 106(6)(b) of the NCA has reference hereto.

14. SUMMARY OF CREDIT LIFE POLICY APPENDIX A

This document is a summary of the policy wording. This summary should be read in conjunction with the policy wording. For a full copy of the policy wording, please contact Real People Assurance Company Limited ("Real People Assurance") to ensure that you are familiar with the terms and conditions. In the event of any dispute or any discrepancy between this summary and the policy wording, the policy wording will prevail.

1. INSURED

• The insured is the person who has entered into a finance agreement with Real People Home Finance (Pty) Ltd ("Real People") and has signed the finance agreement, and wishes to obtain this insurance as security for the insured's obligations towards Real People in terms of the insured's finance agreement with Real People.

• The insured shall be the only person covered in terms of the Credit Protection Plan and must be a resident of the Republic of South Africa.

• The insured herewith declares that all information provided in the finance agreement and incidental documentation is true and correct any may be used by the Insurer for the administration of the Credit Protection Plan.

2. INSURED EVENTS

Death, disability (permanent and temporary) and loss of income (where applicable).

3. ELIGIBLE AGE

The insured will be eligible to apply for cover in terms of this policy up to the age of 65 (sixty five) years unless specifically otherwise stated.

4. SUM INSURED

The insured shall be covered to the amount of the outstanding balance due by the insured in terms of the relevant finance agreement, being the capita sum advanced in terms of the finance agreement, plus interest thereon, charges and fees, less any repayments made in respect thereof.

5. BENEFITS

5.1 DEATH BENEFIT

This benefit provides cover in the event of death of the insured occurring during the period of insurance. Real People Assurance shall pay to Real People in one lump sum the sum insured.

5.2 DISABILITY

The policyholder shall be covered subject to the terms contained in the Master Policy, and cover shall remain effective until such time as the policyholder's policy has lapsed or is cancelled or otherwise terminated. The policyholder shall be covered to an amount equal to Real People Assurance's Maximum Liability in case of permanent disability. For temporary disability:

• obligations under the Finance Agreement that become due and payable for a period of 12 months;

• during the remaining repayment period of the Finance Agreement; or

• until the consumer is no longer disabled, whichever is the shorter period.

For the purpose of this policy, Real People Assurance will regard permanent disability to mean medically certified total disability, as a result of illness, injury or disease occurring after a deferred period of 1 (one) month, and which cannot be cured or treated and which prevents the policyholder from earning an income by following his own or suited occupation in keeping with his/her education, training or ability and experience. The policyholder shall also be deemed to have suffered permanent disability upon the permanent loss of or loss of use of both hands, feet or eyes.

No claim in respect of permanent disability will be considered or paid out unless accompanied by a medical certificate from a qualified medical specialist certifying that the policyholder is permanently disabled. This benefit terminates automatically on the date of the Assured's 65th (sixty-fifth) birthday or on the expiry of the term of this policy.

The permanent disability benefit is subject to a waiting period of 6 (six) months (which equates to 6 premiums fully paid) from the commencement date of cover for this policy.

Real People Assurance's liability in terms of this policy shall at all times be limited to the Maximum Liability and cover shall terminate upon the receipt of a claim in respect of any one Benefit.

5.3 RETRENCHMENT

In the event of the consumer becoming unemployed or unable to earn an income, other than as a result of permanent or temporary disability, all the consumer's obligations under the Finance Agreement that become due and payable:

• for a period of 12 months;

• during the remaining repayment period of the Finance Agreement; or

• until the consumer finds employment or is able to earn an income. whichever is the shorter period.

Real People Assurance's liability in terms of this policy shall at all times be limited to the maximum liability, as defined.

This benefit provides cover in the event of the retrenchment or redundancy of the insured by his/her employer occurring during the period of insurance.

This benefit terminates automatically on the date of the insured's 65th (sixty-fifth) birthday or date of retirement or death, whichever occurs first.

EXCLUSIONS - No benefits are payable if:

• Retrenchment or termination of employment is within the first 3 (three) months after the commencement of cover under the credit life policy, only where the term of the Finance Agreement is more than 6 (six) months;

• Lawful dismissal, including dismissal as a result of willful misconduct that is a violation of some established, definite rule of conduct, a forbidden act, willful dereliction of duty or misconduct;

• Voluntary forfeiture of salary, wages, or other employment income;

• Voluntary retrenchment or termination of employment;

• Resignation;

• Retirement;

• Participation in unprotected strike; and

• Retrenchment of which the consumer was aware or received notice of, during the 3 (three) months preceding the date on which cover under that credit life policy commenced.

6. SPECIFIC RESTRICTIONS, EXCLUSIONS, PROVISIONS AND CONDITIONS

6.1 RESTRICTIONS ON LIABILITY

Real People Assurance's liability in terms of this policy shall not under any circumstances extend beyond the eligibility ages or beyond the terms of the credit agreement with Real People or beyond the payment of a valid death claim.

6.2 WAITING PERIODS

Real People Assurance shall not consider any claim that arose prior to the receipt of the first Premium in respect of this policy. Further waiting periods (if any) as specified in the relevant Schedule will apply.

Any pre-existing condition the policyholder was aware of, which affected the policyholder in the 12 months preceding the commencement of cover under that credit life policy and the policyholder is informed of such an exclusion or failed to disclose at inception.

Retrenchment or termination of employment in the first 3 months after the commencement of cover, on where the term of the credit agreement is more than 6 months.

6.3 SPECIFIC EXCLUSIONS ON LIABILITY

Real People Assurance shall not be obliged to make any payment in respect of any condition or event arising directly or indirectly from, contributed to by or traceable to any:

• any attempt at suicide, any self-inflicted injury of illness, participation in hazardous sports or driving whilst the concentration of alcohol in the insureds blood exceeds the statutory limit in force at that time or whilst the assured is under the influence of alcohol or a drug having a narcotic effect.

• death by means of aviation, other that as a paying passenger on a commercial flight;

• war, invasion acts of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection or military or usurped power, participation by the insured in any criminal act, or

• by ionising radiations or contamination by radioactivity from any nuclear fuel or waste.

• Cover in terms of this policy will also cease if either the policy or the finance agreement with Real People is terminated, and no claim in terms of this policy will be considered if it is in any way fraudulent.

6.4 DEATH AND DISABILITY

Death or disability resulting from:

1. The abuse of alcohol, drugs or narcotics;

2. Willful self-inflicted injury or suicide;

3. Active participation in war, invasion, acts of foreign enemies,

4. Hostilities, warlike operations (whether war be declared or not),

5. Civil war, insurrection, rebellion revolution, civil commotion or

6. Uprisings, military power;

7. The use of nuclear, biological or chemical weapons, or any radioactive contamination,

8. Participation in criminal activities;

9. Participation in hazardous activities such as mountain climbing, bungee jumping and speed racing;

10. Any pre-existing condition the consumer was aware of that affected the consumer in the 12 months preceding the commencement of cover under that credit life policy, provided that where a specific pre existing condition is disclosed by the consumer prior to the commencement of cover, the condition may only be excluded if the consumer is clearly informed of such specific exclusion.

6.5 UNEMPLOYMENT AND INABILITY TO EARN AN INCOME (OTHER THAN DUE TO DISABILITY)

1. Retrenchment or termination of employment within the first 3 months after the commencement of cover under that credit life policy, on where the term of the credit agreement is more than 6 months;

2. Lawful dismissal, including dismissal as a result of willful misconduct that is a violation of some established, definite rule of conduct, a forbidden act, willful dereliction of duty or misconduct,

3. Voluntary forfeiture of salary, wages, or other employment Income,

4. Voluntary retrenchment or termination of employment,

5. Resignation,

6. Retirement,

7. Participation in an unprotected strike, and

8. Retrenchment of which the consumer was aware or received notice of during the 3 months preceding the date on which cover under that credit life policy commenced.

7. PREMIUM PAYMENT

Premiums shall be payable monthly in advance to Real People Assurance by the policyholder, and premiums may be received by either Real People Assurance or its appointed administrator, in a manner as agreed with the policyholder.

A grace period of 30 (thirty) days is permitted for the payment of premiums. If any premium is not paid within this period the policy will lapse and no benefits will be payable, subject to the Long Term Insurance Act 52 of 1998. The credit provider may fund premiums on your behalf if they so wish.

No Premiums will be refunded to the policyholder should the policy be cancelled or a claim repudiated.

An amount equaling any unpaid premiums will be recouped from any benefits payable in terms of this policy.

Premiums may be varied by the Insurer on actuarial advice, provided that the policyholder shall receive 1 (one) month's written notice of such variation.

8. PERIOD OF INSURANCE

Due to the type/nature of this policy, it cannot be cancelled or waived and the policy will remain in force and effect until such time as all obligations of the insured towards Real People arising out of the finance agreement have been settled in full; unless otherwise provided for in this policy document.

9. MISREPRESENTATION

Since the information on the Policy Certificate to this policy and all declarations made form the basis of this Master Policy, this assurance shall be voidable in the event of misrepresentation or non-disclosure by or on behalf of the insured of any fact material to the assurance. This policy shall however not be invalidated on account of any incorrect statement made in good faith unless the incorrectness of such statement materially affected the assessment of the risk under this policy at the time of issue thereof.

10. FRAUD

If any claim under this policy were in any respect fraudulent or if any fraudulent means are used by the insured or any one acting on his behalf to obtain any benefit under this policy all benefits in respect of such policy shall be forfeited.

11. REJECTION OF CLAIM AND TIME BAR

If Real People Assurance declines liability for a claim in terms of this policy or cancels the policy, representation may be made to Real People Assurance within 180 (one hundred and eighty) days of the date of the letter of rejection of cancellation letter.

Representation must be submitted in writing to:

Real People Assurance Company Limited

12 Esplanade Rd, Quigney

East London, 5201

Fax: 086 621 6863

12. CLAIM NOTIFICATION PERIOD

The death/retrenchment/disability or the occurrence of a dread disease of the insured must be reported in writing to Real People Assurance within 3 (three) months of the date of the occurrence of an insured event.

If for any reason whatsoever notice of a claim following upon the occurrence of an insured event is not given within the stipulated period of 3 (three) months, all benefits under this policy in respect of such a claim shall be forfeited and the claim shall become prescribed.

13. IN THE EVENT OF A CLAIM

In the event of a claim, the specified benefit will be paid to Real People as the insured's beneficiary in terms of this policy.

1. Claims must be reported to Real People Assurance within 3 (three) months of the occurrence of the insured.

2. Claims are submitted to Real People Assurance at: Tel: 086 1 114 803 Fax: 086 621 6863.

3. Real People Assurance shall process claims on receipt of the following documentation:

• A fully completed claim form;

• A certified copy of the Identity Document of the deceased insured;

• A certified copy of the death certificate of the deceased insured;

• BI1663, notification of death form;

• Police statement, in the event of death due to unnatural causes;

• Real People Assurance may request a medical report as such medical information as it may reasonably require in support of any claim.

• Letter from the employer confirming retrenchment in case of retrenchment claim.

All certificates, information and evidence required by Real People Assurance shall be furnished in the form prescribed by Real People Assurance and at the expense of the insured Person(s) or his nominated beneficiary. A Commissioner of Oaths shall certify all copies.

14. CESSION

It is recorded and agreed to by the insured in the application from, that the insured assigns and transfer the benefits in terms of this policy as collateral surety to Real People as security for the outstanding debt owed by the insured to Real People.

The insured further assigns and transfer all the respective rights, title and interest in this policy to and in favour of Real People and according Real People Assurance undertakes, in the event of a valid claim, to pay the benefits as defined , to Real People. This cession supersedes and cancels any other beneficiary nominated by the insured.

15. COMPLAINTS PROCEDURE

Complaints must be lodged with Real People Assurance at:

Real People Assurance

12 Esplande Road, Quigney

East London, 5201

Tel: 0861 114 803, Fax: 086 621 6863.

Real People Assurance Company Limited is an Authorised Financial Service Provider (FSP 26634) and Registered Long Term Insurer.

Should the insured not be satisfied with the outcome of any complaint, the Long Term Insurance Ombudsman or the FAIS Ombud may also be contacted at:

Ombudsman for Long Term Insurance:

PO Box 45007, Claremont, 7735

Tel: (021) 674 0330, Fax: (021) 347 0221

FAIS Ombud:

PO Box 74571, Lynwood Ridge, 0040

Tel: (012) 470 9080, Fax: (012) 348 3447

16. THE INTERMEDIARY

Real People (Pty) Ltd

Views Building, 12 Esplanade Road,

Quigney, East London

Tel No: 0861 114 803

Fax No: 086 621 6863

Does the Intermediary have any interest in Real People Assurance or did the intermediary, during the past 12 months, receive more than 30% of its total remuneration from Real People Assurance? No

Has Real People Assurance provided the intermediary with a written mandate to act on its behalf? Yes

Does the intermediary hold professional indemnity insurance? Yes

17. FAIS COMPLIANCE DEPARTMENT

Real People FAIS Compliance Officer can be contacted at:

The Compliance Officer

Real People Assurance Company Limited

(FSP no. 26634)

12 Esplanade Road

Quigney

East London

5201

Tel: 0861 114 803

Fax: 086 621 6863

15. FLEXIBUILD LOAN APPENDIX B

1. DEFINITIONS

For purposes of this Appendix B, the following meanings shall apply:

1.1 "Advance" means a portion of the Loan Amount which is paid to You from time to time in terms of an Advance Request;

1.2 "Advance Period" means the period from the date on which the loan agreement is signed by you until the Loan Amount has been advanced to you in full (provided that this shall not be more than six months), subject to any cancellation or termination in terms of any other provision hereof;

1.3 "Advance Request" means the advance request to be made by You to Us from time to time in respect of which You request a further portion of Your Loan Amount be advanced by Us to You. An Advance Request cannot be made more than 6 months after the Loan Agreement has been concluded whereafter no further Advances will be made even if You have not used the full Loan Amount set out in the Quotation;

1.4 "FlexiBuild Loan" means the FlexiBuild Loan chosen by You in Your application, the details of which are contained in this Appendix B as read together with the balance of the Loan Agreement and incorporated by reference therein.

2. FLEXIBUILD LOAN

2.1 The loan that you have chosen and which We have agreed to give to you based on our affordability assessments is a FlexiBuild Loan.

2.2 In terms of the FlexiBuild Loan, We aim to assist You with Your building or home improvement project and the purpose of the Loan is solely for the acquisition, rehabilitation, building or expansion of housing ("Specified Purpose").

2.3 While you have been approved for the Loan Amount you are not required to utilize the Loan Amount as one lump sum immediately. You will be entitled to make an Advance Request as and when required so that You only pay interest and charges on the portion of the Loan Amount advanced to You from time to time.

2.4 As per the details given to You in Your Application, a FlexiBuild Loan allows You to utilize the Loan Amount in portions, as and when required so that You only pay interest and charges on the portion of the Loan Amount advanced to You from time to time during the Advance Period. Please note that this is not a credit facility as payment is subject to RP rules and once the full Loan Amount is disbursed, (notwithstanding any repayment of amounts owing in respect thereof), no further amounts will be available to You unless a new independent application for credit is made and approved by RP.

2.5 Where a FlexiBuild Loan has been chosen, instalments will vary depending on the timing and value of the advances made from time to time and a relevant statement will be delivered at the end of each month setting out revised amounts owing.

3. ADVANCE REQUESTS

3.1 You will be entitled to request an Advance with effect from the date on which the Loan becomes effective and for the duration of the Advance Period on the following basis:

(a) a minimum Advance Request amount of R2 000.00 will apply;

(b) credit life will be calculated on the total sum of Advances and a cash out at each month end;

(c) an Advance Request is given to RP;

(d) RP will assess the Advance Request and the advance of funds shall be made into your bank account and/or to the Participating Merchant, as the case may be in the sole and absolute discretion of RP since We will need to take into account whether there have been any factors which may affect your financial situation and/or compliance with the Loan Agreement;

(e) where any remaining portion of the Loan Amount is less than the minimum referred to in 3.1 (a), the Advance Request may be made in respect of such remaining portion.

3.2 If we approve the Advance Request, the funds will be disbursed, in accordance with your instructions, into either directly to the Merchant or into your designated bank account.

3.3 You will have no claim against RP if it declines an Advance Request.

4. VERIFICATION CHECKS

4.1 During the Advance Period and provided the Loan Amount is not taken in full, the following verification checks will be done from time to time and you hereby consent thereto:

(a) A credit bureau check;

(b) An affordability assessment;

(c) A fraud check;

(d) Your payment history with RP on the Loan;

(e) Your obligations under the Loan Agreement.

4.2 In the event that the verification checks in 4.1 are negative and RP, in its sole and absolute discretion, decides that this would have a negative impact on Your ability to repay Your debts, then further Advance Request will not be allowed and an Advance Request will be suspended until an investigation and possible resolution. To the extent that this is the case, any portion of the Loan Amount which has been advanced as at that date will remain payable in full in terms of the Loan Agreement over the remaining term of the Loan Agreement.

5. NOTIFICATIONS

5.1 We will send an SMS notifying You when the Advance Request has been accepted and the Advance made. At this point You may use the Advance to purchase building material.

5.2 The SMS will show You:

(a) the Advance Request amount granted;

(b) the next instalment and due date for payment of instalment;

6. INITIATION FEE

Notwithstanding that this is a FlexiBuild Product, the initiation fee will be payable in respect of the full Loan Amount in terms of the Terms and Conditions to which this Appendix is attached.

7. INSTALMENT CALCULATION AND CONTRACT TERM

7.1 The contract term and instalment amounts will depend upon the number and timing and value of Advance Request in terms of the FlexiBuild product. To the extent that there any changes in any one month as a result of an Advance Request that has been granted and an Advance paid to You, We will send to You at Your contact details an amended loan schedule which will set out the new calculations as adjusted.

7.2 If there has been no Advance Request or an Advance Request adjustment took place in the month concerned, then the repayment due will not be recalculated.

7.3 To the extent that an Advance Request is made granted and paid, the term of the Loan Agreement in respect of that Advance Request applies as if the Advance Request is the initial date of the Loan Agreement. So for example, the term of the Loan Agreement will be the term set out in the Quotation plus the number of months equivalent to the period of time during which any Advance Request is made and granted from time to time.

8. STATEMENTS

8.1 RP will send You a statement quarterly for physical documents or monthly where You have agreed to email communications. Outstanding balances and statements on Your FlexiBuild Loan can also be found on demand through Our USSD Portal which is available on registration by You.

8.2 The Loan Amount remaining during the Advance Period will be sent to You via SMS along with the current balance of Your RP account, the instalment due and the date on which the instalment is due.

9. CONFLICT

To the extent of any conflict arising between this Appendix B and the Loan Agreement, the provisions of this Appendix B will prevail (where the Product is a FlexiBuild Loan).