Akafay Loan agreement

By accepting this Agreement, you agree to use Akafay’s Buy Now, Pay Later (BNPL) services to finance purchases of goods or services through Akafay’s platform. This Agreement governs your obligations, repayment schedule, and other terms related to the financing you receive through Akafay. By proceeding, you confirm that you understand and agree to these terms.

  1. Introduction

    1. Terms and Conditions: These Terms (“Terms”) govern your use of the Installment Payment Option provided by your selected financial institution (“the Bank”), and facilitated by Akafay, the Bank’s authorized technology agent. Throughout these Terms, references to “we,” “us,” or “our” refer to Akafay acting on behalf of the Bank. By entering into this arrangement, you agree to purchase eligible commodities using a deferred payment structure. This structure allows you to repay the total amount in installments, as outlined in your Buy Now, Pay Later (“BNPL”) agreement with us (the “Akafay Loan Agreement”).
    2. Acceptance of terms: Please review these Terms carefully before selecting the Installment Payment Option. If you do not accept the Terms, you must refrain from using this option and instead proceed with the immediate payment (“Pay Now”) method.

  2. Installment Payment Option

    1. You may request to restructure the repayment term of your Akafay obligations under the Buy Now, Pay Later (“BNPL”) Agreement by selecting the Installment Payment Option. This request is subject to review and approval by Akafay.
    2. If approved, Akafay will issue a formal notification and provide the applicable loan Agreement, including transaction details and repayment terms.
    3. By accepting the Installment Payment Option, you confirm your understanding of and agreement to the terms and conditions set forth in the Akafay Loan Agreement.

  3. Transaction

    1. Principal Purchase

      1. The bank of your choice acts as the principal in the transaction.
      2. The bank will purchase specific commodities from a selling broker at the prevailing market price through Akafay.
      3. The purchase of commodities will be executed in accordance with the terms and prices agreed upon with the merchant through the Akafay platform, with the bank acting as the principal buyer and Akafay enabling merchant onboarding, customer verification, and transaction orchestration across the financing workflow.

    2. Loan Sale Agreement

      1. The bank will provide financing for the purchased commodities under the agreed loan agreement, with Akafay facilitating the transaction, ensuring customer authentication, and managing the BNPL workflow.
      2. The purchase price for the commodities will include the cost of the goods plus interest charged by the bank as the principal lender. Akafay facilitates the transaction workflow but does not set the interest rate.
      3. The terms of the loan agreement, including the repayment schedule, applicable interest rate, and any other relevant conditions, will be clearly outlined and agreed upon by both Akafay and you.

    3. Agency Appointment

      1. You hereby authorize the Bank as your agent (the “Agent”), acting as the seller under this Loan Agreement, to sell the commodities to you and allocate the proceeds from the sale. Akafay will facilitate the transaction by enabling merchant onboarding, customer verification, and transaction orchestration across the BNPL workflow.
      2. The Agent, as the seller under this Agreement, is authorized to manage the sale of the commodities and allocate the proceeds. This includes, but is not limited to, determining the timing, manner, and terms of such sale and allocation. Akafay will provide the digital platform to manage the transaction and verify customer information.
      3. The Bank, as the seller under this Agreement, has full authority to carry out all actions necessary for selling the commodities and managing the proceeds. This includes entering into contracts, executing agreements, and taking any other actions required to complete the sale. Akafay will support the process by providing the digital platform to manage the transaction and verify customer information.
      4. Akafay will track your repayments and provide a report showing the original price of the product and the agreed-upon interest, ensuring transparency throughout the repayment period.

    4. General Provisions:

      I. You acknowledge and agree that after the sale of the commodities to you under this Loan Agreement, Akafay acts solely as a facilitator, handling customer authentication, transaction processing, and workflow management, and does not assume any ownership or financial interest in the commodities. The Bank remains the principal seller and owner of the goods throughout the transaction.

      II. Before the sale of the commodities to you, the Bank bears full ownership and risk of the goods from the moment they are purchased from the selling broker until they are sold to you under this Agreement.

      III. You agree to comply with all applicable laws, regulations, and terms governing Buy Now, Pay Later (BNPL) agreements, as well as the specific terms outlined in your Akafay BNPL Agreement.

      IV. Akafay reserves the right to amend or modify these Terms and Conditions at any time, provided that prior notice is given to the Customer before such changes take effect.

  4. Communication:

    By using the Installment Payment Option, you agree to receive communications from Akafay regarding the status of your request, repayment schedule, and any applicable fees or updates related to your Loan Agreement.

  5. Late Payment

    1. If you are unable to make your payment on time due to circumstances beyond your control, you may request an extension up to 24 hours before your payment is due.
    2. A delay in making your payment on time will result in a daily late payment fee, applied from the day your payment is missed until it is received. The fee amount will be clearly communicated to you in advance and is designed to encourage timely repayment.
    3. You acknowledge that it is your responsibility to review and understand the implications of any late payment on your repayment plan as presented to you by Akafay.

  6. Right to Cancel

    Akafay or the Agent reserves the right to cancel or modify the Installment Payment Option at any time without prior notice.

  7. Applicable Law

  8. These Terms and the Installment Payment Option are governed by the laws and regulations of the Federal Democratic Republic of Ethiopia, including directives regulating financial services.

  9. You irrevocably agree that any dispute or claim arising out of or in connection with these Terms shall fall under the exclusive jurisdiction of the competent courts of the Federal Democratic Republic of Ethiopia.

  10. Customer Support and Agreement to Terms

    1. For any inquiries or assistance related to the Installment Payment Option, please contact Akafay’s customer support team.
    2. By using the Installment Payment Option, you acknowledge that you have read, understood, and agreed to these Terms and Conditions.
    3. Akafay reserves the right to update these Terms at its discretion. When updates are made to the App and/or Website to incorporate any changes, you will be notified via your registered email address or phone number at least 30 business days in advance of the changes taking effect, unless such updates are required earlier by applicable law.