ADDITIONAL HOUSE LOAN AGREEMENT

THIS AGREEMENT is made this …………………..day of ………………….. 2020

BETWEEN

National Health Insurance Fund a body corporate established under Cap. 395 R.E
2015, whose postal address for the purpose hereof is P. O. Box 1437 Dodoma
(hereinafter “the the Lender” which expression shall, where the context so permits
include its assigns and successors in title), of the one part,

AND

Ramadhan Mhina an employee of the Lender of Postal Office Number

…………………………………………………………………….(hereinafter called
“the Borrower”) which expression, shall, where the context so admits include its
successors and assigns of the other part.

WHEREAS

A. The Borrower is in the process of constructing a new house

…………….., Plot No …………… Block ……, Situated at
……………. District ……………. Region.

B. And has sought financial assistance in the form of a loan of Tshs.

20,000,000/= (Twenty Million Shilling Only.) from the Lender subject
to the terms and conditions contained hereafter.

NOW, THEREFORE THE PARTIES HERETO DO HEREBY AGREE AS

FOLLOWS: -

ARTICLES 1: INTERPRETATION

1.1 In this agreement except where the context otherwise requires the
following expression words shall bear the meaning assigned there to: -
(a) “Borrower” and “Lender” shall bear the respective meanings
assigned to those expressions in the preamble of this Agreement
and in any case shall include the successors in title.

(b) The word “Borrower” and “Loanee” shall be used interchangeably in

all expressions as far as this Loan Agreement is concerned.

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 (c) “Loan Amount” means the sum of Tanzania Shillings 20,000,000/=
(Twenty Million Shilling Only.) to be advanced by the Lender to
the Borrower hereunder: -

ARTICLE 2: LOAN AMOUNT AND UTILIZATION THEREOF

2.1 Subject to the provision of this Loan Agreement, the Lender hereby
undertakes to advance to the Borrower, by way of a loan amount of
Tanzania Shillings 20,000,000/= (Twenty Million Shilling Only) the
proceeds of which shall be used exclusively towards purchasing a
house/constructing a new house/finishing construction, rehabilitating or
repair of a house in the afore mentioned plot.

ARTICLE 3: DISBURSEMENT OF THE LOAN

3.1 For borrowers who want to purchase a house, the Lender shall disburse in
full the approved Loan amount once all formalities have been completed.
Provided that for borrowers who want to construct a house the Lender
shall disburse 50% of the loan as first installment. The last installment of
50% shall be withheld until the Loan Committee has inspected the house
being constructed and is satisfied with the development.

3.2 For Borrowers who apply loans for purchasing houses, the respective
houses shall be inspected by the Staff Loans Committee to ascertain their
worthiness prior to the disbursement of loan granted.

ARTICLE 4: COSTS

4.1 All costs and incidental expenses to this agreement shall be borne by the
Borrower and may at the option of the Lender in the first instance be paid
by the Lender on behalf of the Barrower and then deducted by the Lender
from the loan payment.

ARTICLE 5: INTEREST

5.1 The Borrower shall pay simple interest to the Lender on the disbursed
loan amount at the rate of three percent (3%) of the loan, paid once prior
to disbursement of the loan.

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ARTICLE 6: REPAYMENT OF THE LOAN AND DEFAULT THEREOF

6.01 Notwithstanding any provision hereof first repayment installment of the

loan shall be due in all cases at the end of the next month after the loan
has been disbursed to the Loanee.

ARTICLE 7: SECURITY OF THE LOAN

7.01 The borrower shall mortgage the said house to the lender;

7.2 The Borrowers terminal benefits;

7.3 Title deed, letter of offer or land ownership in respect of mortgaged house;

7.4 Insuarance

ARTICLE 8: BORROWERS WARRANTIES

8.1 The Borrower warrants that:

8.1.1 The Borrower shall not in any circumstances sell the house to be acquired
while the loan is outstanding.

8.1.2 To the best of the Borrower’s knowledge, no suit is pending in any court of
law in respect of the house, nor has the Borrower been served with any
notice for infringing the provision of any Act, or by-law or any
encumbrance whatsoever.

8.1.3 The Borrower has disclosed all facts concerning the house acquired to the
Lender.

ARTICLE 9: BORROWER’S UNDERTAKINGS RELATED TO THE LOAN

9.1 The Borrower hereby undertakes to:

9.1.1 Cause all moneys advanced hereunder to be applied exclusively towards,

construction of a new house or finishing construction of
house/rehabilitating or repair of a house depending on the purpose and
nature of the loan.

9.1.2 Promptly inform the Lender of any circumstances or events that interfere
or threaten to interfere with the loan plans or the performance by the
Borrowers obligations hereunder or will increase materially the estimate
costs.

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9.1.3 Carry out the construction of a new house/ finishing construction of a
house/ purchase a house /rehabilitation or repair of a house with due
diligence and efficiency.

9.1.4 To keep the house to be acquired through the loan insured against all
hazard with a recognized insurance company.

ARTICLE 10: REMEDIES OF THE LENDER

10.01 In the event of the occurrence of any breach of the terms of the
Lender and conditions of this Agreement on the part of the
Borrower, the Lender shall serve notice on the Borrower specifying
the nature of the breach(es) as well as calling upon the Borrower to
rectify breach(es) within three months from the date of the notice.

10.01.1 If the breach(es) referred to in Article 10.01 hereof is/are not

rectified within the aforesaid three months, then this Agreement
shall terminate forthwith where upon all monies due and payable by
the Borrower to the Lender shall become immediately repayable
together with all interest accrued to the date of payment.

ARTICLE 11: NOTICE

11.1.1 Any notice to be issued hereunder shall be in writing and may be

given by sending the same to the other party giving the notice or by
delivering the same to such address.

ARTICLE 13: DURATION OF THE AGREEMENT

13.1 The obligation on the part of the Borrower to be performed or

hereunder shall continue so long as any money remains owing to
the Lender hereunder. When the Lender’s loan have been repaid,
this Agreement and all obligations of the parties hereunder, them
subsisting shall forthwith be terminated.

Provided that recovery period for a loan shall not exceed ten (10)
years depending on loanee’s age and wishes.

ARTICLE 14: SETTLEMENT OF DISPUTES

14.1 Any dispute and controversies arising out of or otherwise relating to

the Agreement shall, in the first instance be settled amicably
between the Borrower and the Lender and failing such amicable
settlement, the parties hereto shall have the right to take any
appropriate legal action.

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ARTICLE 16: PART OF THIS AGREEMENT

The following documents shall form part of this Agreement.

16.1 The NHIF Staff Loan Policy.

16.2 Loan Application letter.

16.3 Letter for grant of loan from the Employer-for the purpose of this
agreement, the Lender.
.

ARTICLE 15: GOVERNING LAW

15.1 This Agreement and its performance shall be governed by and

construed in all respects in accordance with the laws of the United
Republic of Tanzania for the time being in force.

IN WITNESS WHEREOF THE parties hereto have dully signed these presents
day and year in the manner herein after appearing.

SIGNED and DELIVERED on behalf }

of the said THE NATIONAL HEALTH }
INSURANCE FUND by } …………………………………..
…………………………………………….. } official stamp
On ……………day of ……….. 2020 }
Name …………………………………….
Signature: ………………………….……. }
Qualification: …………………………….

In the Presence of:

Name …………………………………….
Signature: ………………………….……. }
Postal address: …………………………. }
Qualification: ……………………………. }

SIGNED and DELIVERY by the } …………………………………..

Said ……………………………………… } Signature
Who is known to me personally }
In my presence this …………… day }
of …………………….….2020 }
Signature: ………………………..……… }
Postal address: ………………………… }
Qualification: …………………………… }