TERMS AND CONDITIONS FOR BORROWERS

April 12, 2019

Please read these Terms and Conditions (“Terms”, “Terms and Conditions”) carefully before using blend.ph (“us, “we”, “our”, “platform”).

By becoming a borrower of blend.ph, you must accept and comply with these Terms and Conditions, in addition to our privacy policy. If you disagree in any part of these Terms, you may stop using the platform.

Under this Loan Contract, you agree to receive or repay one or more installment loans from us, through the Platform (blend.ph).

These terms affect your rights and you should read them carefully and print a copy for your records. Your agreement to these terms means you agree to borrow and repay the money if your loan is funded under the terms of this Loan Contract, agree to transact with us electronically, and agree to have any dispute with us resolved by binding arbitration.

ACCEPTANCE OF TERMS OF SERVICE

This is an agreement between you (“You” or “you”), a user of this Site and Inclusive Financial Technology, Inc. (“Company”), the owner and operator of blend.ph (“Site”)

By becoming a borrower of blend.ph, you acknowledge, accept, agree with, and comply with these Terms and Conditions, in addition to our privacy policy. By using our site, you agree to the terms and conditions stated herewith.

MEMBERSHIP REQUIREMENTS

If you are an Individual Borrower, you must:

1. be atleast 21 years old

2. be a resident of the Philippines; foreigners must submit legal documents as proof of residency in the Philippines

3. have a valid social security number and Tax Identification Number (TIN);

4. have a checking account

5. be employed or own a business;

5.1 If employed, you are able to authorize payroll deductions through your employer or your bank;

5.2. If employed, your payroll is not currently subject to assignment, wage deduction order, or garnishment;

6. meet minimum credit and fraud risk criteria, which will be obtained from our partner credit bureau and our internal credit evaluators.

If you are a Corporate Borrower, you must:

7. be a domestic corporation, with a valid operating address in the Philippines;

8. be a stock corporation, public bodies, charities, or trusts;

9. have the majority of the directors or partners of your business be permanent residents in the Philippines;

10. have your place of operation be in the Philippines;

11. have your business, directors, members, partners, or proprietors meet minimum credit and fraud risk criteria, which will be obtained from our partner credit bureau or credit reference agencies;

12. not have a pending case in court, or any legal action filed against your corporation; and

13. not be a defendant in a civil action.

LOAN TERMS

1. Your loan will have a principal balance in the specific amount and on the terms set forth in the disclosures provided to you through your online blend.ph account.

2. You agree and acknowledge that the initial loan disclosures made to you are estimates.

3. Loans may be secured or unsecured, fully-amortizing and are closed-end loans with 6 to 36 months term.

4. A borrower may apply for a loan amount based on the loan product he/she intends to avail:

5. depending on the loan product, blend.ph loans may range from a minimum amount of Php 10,000 and a maximum of Php 2,000,000 for borrowers.

6. Annual add-on interest rates are applied to each loan application based on underwriting process results.

7. Should you apply for a loan on the Platform as a Borrower, your loan application will undergo the necessary underwriting and approval process, prior to posting it in the public auction  or for funding for Partner Lenders.

8. Lenders (“Lenders”, “Investors”, “Partner Lenders”) will be able to review all loan applications. Lenders may commit funds to lend, in various amounts that correspond to all or a portion of your loan request.

9. blend.ph serves as a lending platform, thus only facilitates, enables, and supervises the lending process, and does not bid or fund any loan application.

INFORMATION VALIDATION AND CREDIT VERIFICATION

1. We reserve the right to verify any information you submit, by requiring you to produce appropriate documentation or other proof we deem necessary.

2. You hereby consent to the sharing of your necessary personal information to TransUnion Information Solutions Inc. and other third party credit bureaus for purposes of credit investigation, credit reference checks, scoring and the like and to the collection, usage, process, storage and sharing of information to members of TransUnion.

3. You hereby authorize us to request and obtain data from a third party to verify any information you provide to us in connection with your loan request.

4. We may terminate consideration of your application at any time in our sole discretion.

BORROWER REGISTRATION AND LOAN APPLICATION PROCESS

You acknowledge and confirm that, when you apply to borrow money through blend.ph, you will be borrowing money through blend.ph from a Lender through peer-to-peer lending and you are not borrowing money to either blend.ph or any member of blend.ph.

 

Borrower Registration

1. Registration is done through the Platform and clicking “Register as” “Borrower”.

2. You must completely fill-out the application form on our Site by providing factual information.

3. You must provide an active email address.

4. You must verify the email address provided.

5. You must provide an active, local mobile number.

6. You must verify the mobile number through a One Time Pin (OTP) which will be sent to the registered mobile number by the system.

7. Once your mobile number has been verified, you may continue the application process.

8. You can then access your Borrower Dashboard (“dashboard”), wherein the information about your account is indicated.

Loan Application Process

1. You must provide the basic loan terms that you are applying for.

2. You must provide factual answers to credit-related questions.

3. You must upload photos and other accepted formats of documentary requirements.

4. Your loan application will only be processed once you have provided all the required information and documents.

5. You must allow at most three (3) working days for loan application validation, verification, and underwriting process.

Loan Application Approval & Credit Checking

1. blend.ph will verify your loan application.

2. You must constantly adhere to the inquiries and requests of our underwriting team to allow the process of validation and verification. This will be done through actively responding to all communications from our underwriters.

3. Once the application has been verified and approved, a notification will be sent to the Borrower Dashboard and your e-mail address, and you will be asked to approve details updated by blend.ph.

Loan Application Rejection

1. blend.ph reserves the right to reject loan applications on our sole discretion.

2. In the event that your loan application is rejected, you will be notified through the email and mobile number you have provided.

3. In the event that your loan application is rejected, you may re-apply after 3 months.

Auction

1. Your loan application will be posted for auction for a minimum of fourteen (14) days.

2. You may check the status of your loan application and monitor lender bids in your ph account anytime.

3. Once your loan is fully funded, and you are satisfied with the interest rate offered by the lender/s, you must accept the funding even before the fourteen days auction is over.

4. A notification will be sent to your Dashboard to accept a loan contract. You must accept before we can process the disbursement.

Disbursement of Loan Proceeds

1. After accepting the loan contract, you may check your ph account balance to see if the amount you loaned is already in your blend.ph wallet.

2. To get the loan amount, click the “Claim” button from your dashboard. The amount you claim will be deducted from your blendwallet and will then be processed for disbursement.

3. Instructions on how to claim the loan amount and compliance with Know-Your-Client regulations will be sent to you via your e-mail address or mobile phone number.

4. Know-Your-Client and Disbursement process is done on the same day and must be conducted in person with our representative in compliance with Banko Sentral ng Pilipinas (BSP) regulations.

Repayments

1. The amount of the monthly or other scheduled repayments payable to Lenders in respect of the loans will be set out in the Loan Contract.

2. A detailed payment schedule will be provided to you following the Loan Contract is in force (and such information is also available through your account on the platform).

3. We will collect the repayment amounts each month or as otherwise set out in the Loan Contract via Post Dated Checks you provided.
We will collect the repayment amount due, at most 5 days before the date specified in the Loan Contract to ensure that funds are received and distributed to Lenders.

4. The monthly or other scheduled repayments payable due you to each Lenders may be viewed on your Account Dashboard.
You may repay an entire loan early at any time, provided you pay the principal amount outstanding, together with the interest due until the end of the month in which the loan is so repaid. A pre-termination fee equivalent to 1-month interest shall be charged accordingly upon termination.

5. In certain circumstances, ph may (but is not obliged to) enforce certain terms of each Loan Contract on behalf of the Lenders bound to it. In doing so, blend.ph is authorised to act as an agent on behalf of the relevant Lenders (in accordance with its agreed terms and conditions with the Lenders) in taking such action. In such case, you are liable to pay any attorney’s fees, filing fees, and costs if we have to take any legal action before the appropriate courts to enforce these Terms and Conditions.

Payroll deduction or Auto-Debit Arrangement for Individual Borrowers

1. Upon Registration, you are given the option to pay your regular loan payments through payroll deductions or auto-debit arrangement.
You will also be provided with the Irrevocable Authorization and Direction Form (for employer) and Authority to Deduct Form (for bank) with respect to your scheduled payroll deductions. These documents are provided to you before any loan is made, and you must read and agree to the terms before any loan will be made.

2. Upon selection, you shall submit your duly signed Irrevocable Authorization and Direction Form or Authority to Deduct Form to blend.ph, subject to the approval of your employer or bank.

3. While your employer or bank facilitates repayment through convenient payroll deductions, you are ultimately responsible for repaying your loan after you have severed your employment.

4. If for any reason, any two (2) consecutive payments are not made in full, then the payroll deductions will stop. We will then initiate actions provided under the Default section of these Terms and Conditions.

5. You can avoid default by notifying blend.ph and creating special repayment method.

Auto-Debit Arrangement for Corporate Borrowers

1. Upon registration, you are given the option to pay your regular loan payments through auto-debit arrangement with your bank.

2. You will also be provided an Authority to Deduct Form with respect to your scheduled automatic deductions. This document is provided to you before any loan is made, and you must read and agree to the terms before any loan will be made.

3. You shall submit your duly signed Authority to Deduct Form to blend.ph, subject to the approval of your bank.

4. While your bank facilitates repayment through convenient auto-debit service, you are ultimately responsible for repaying your loan.
If for any reason, any two (2) consecutive payments are not made in full, then the deductions will stop. We will then initiate actions provided under the Default section of these Terms and Conditions.

5. You can avoid default by notifying blend.ph and creating special repayment method.

Default

1. In the event that your PDC was not honored by our depository banks, we shall inform you accordingly on the notice of dishonor.

2. If you miss a payment or only partially pay the amount due, we (ourselves or through an agent acting on our behalf) will contact you and ask you why you have missed a repayment, and we will attempt to collect the payment.

3. We reserve the right to contact you by any method necessary including, but not limited to, by letter, email, phone call, SMS or by sending private messages to your affiliated social media accounts.

4. If our re-attempt to collect the funds fails two (2) days after the payment was due, your account will be treated as an overdue account, and we will continue to attempt to collect the funds. We may refer the missed payment to a debt collections agency (“Collections Agency”), who will attempt to collect the money on the Investors’ behalf.

5. If payment still has not been made seven (7) days from the date payment was due, ph shall charge you administration fees up to 1.25% per month of the missed payment amount (Principal + Interest), which would be in addition to the loan sums due. We may also charge other fees to cover our tracing charges, field agents’ costs, litigation costs, expenses, and other such fees and in-house collections charges (if the loan is defaulted or becomes 3 months in arrears) incurred by blend.ph in the course of protecting the interests of the Investors.

6. Save exceptional circumstances (such circumstances being deemed exceptional by ph in its absolute discretion from time to time), if you miss, fail to pay or only partially pay three (3) or more consecutive monthly instalments, or if you otherwise fail to comply with any term or condition of the Loan Conditions, the loan will be placed into default and we will issue you with a default notice and termination notice and will pursue you for the total loan amount outstanding, including corresponding penalty charges accrued while being in default. We will give you 17 days’ notice before filing a default on your credit reference file with the credit bureau. Please see our privacy policy for more details on how we disclose information about you.

7. If we and/or the Collections Agency is still unable to collect the debt, Investors will assign their loan interests to TITLE SECURE (“Security Holder”) to hold as legal owner on trust for the Investors. ph (as “Security Agent”, acting on behalf of the Security Holder) may take such steps as it considers necessary or desirable to recover the amount owed from you and/or the relevant guarantors, including without limitation to sell the assigned debt to a debt purchaser, instruct third parties to assist with the recovery process, and/or commence formal legal or insolvency action. If such further action is necessary, a collections charge will be added to your debt in addition to any third-party costs (including but not limited to any external legal fees). Such costs and charges will be passed on to you as the defaulting borrower (and are payable immediately). In respect of loans completed on or after 28 September 2015, Investors may not opt-out of assigning their loan parts or whole loans to TITLE SECURE. In respect of loans entered into before this date, Investors are able to opt-out of the transfer of their loan parts or whole loans to TITLE SECURE but if they do so, they undertake to blend.ph and the borrower (amongst others) in the Terms and Conditions for Investors to act at all times in a fair, transparent and proportionate manner having due regard to the borrower and/or guarantor, and in compliance with all relevant laws, regulations and best practice guidance. For the avoidance of doubt, blend.ph has no liability to you whatsoever for the conduct of Investors in any capacity and is not obliged under any circumstances to enforce the Investor undertaking referred to above.

8. It is hereby agreed that time is of the essence with regard to payment of each monthly repayment. Accordingly, ph shall, upon default the loan, demand immediate payment of the full amount of the loan (with all outstanding accrued interest) plus costs and the collections charges if any repayment is missed or only partially repaid (and such missed repayment is not remedied within 10 business days), or if you (or any guarantor of the loan) enters or is deemed to be likely to enter any formal or informal insolvency process.