Key Benefits:
19. Accounts and records of micro lender
(1) Where a micro lender is a natural person, the micro lender shall conduct his or her micro lending business through a bank account that is separate from the micro lenders personal bank account.
(2) A micro lender shall keep all records, in Botswana, as are necessary to exhibit clearly and accurately the state of its affairs and to explain its transactions and financial position so as to enable the Regulatory Authority to determine whether the micro lender concerned has complied with the provisions of these Regulations and any other relevant legislation.
(3) Without prejudice to the generality of subregulation (2), a micro lender shall maintain proper accounting records reflecting full details of all credit advanced, charges raised, repayments received and amounts outstanding.
(4) A micro lender shall keep a signed copy of each loan agreement and the register referred to in regulation 20 for a period of not less than six years.
A micro lender shall, in respect of every loan agreement, maintain a register which shall contain the following details-
(a) loan agreement number or other reference to identify the agreement;
(b) name and address of the borrower;
(c) principal amount of credit advanced in terms of the loan agreement;
(d) date on which credit was advanced;
(e) amount of each repayment installment;
(f) number of installments;
(g) total cost of credit and the total monthly cost of credit rate;
(h) total amount payable in respect of the loan agreement;
(i) penalties and other incidental legal costs which were paid by the borrower; and
(j) statement showing in respect of each repayment-
(i) the amount of repayment made and date on which it was made, and
(ii) the balance outstanding after each repayment.
(1) A micro lender shall have a clear Dispute Resolution Policy and Procedure approved by the Regulatory Authority, which shall be displayed at a prominent position in each of the micro lenders premises, in accordance with regulation 7.
(2) A micro lender shall ensure that the names and contact details of persons responsible for dispute resolution are clearly displayed on the micro lenders premises.
(3) A complainant shall submit any dispute in writing to the persons responsible for dispute resolution, and every attempt shall be made to resolve the dispute within a reasonable period of time.
(4) A micro lender shall ensure that a record of the dispute indicating-
(a) the loan agreement number;
(b) the date of the dispute;
(c) the name of complainant; and
(d) the outcome of the dispute, indicating whether the complainant was satisfied or not,
is kept for a period for six years.
(5) Where a dispute is not satisfactorily resolved, the micro lender shall ensure that the complainant confirms this in writing, and the micro lender shall notify the Regulatory Authority within 30 calendar days of the unresolved complaint.
(1) A micro lender may require a borrower to maintain during the term of the loan agreement, credit life insurance which does not exceed, at any time during the term of the loan and the subsistence of the loan agreement, the total of the borrowers outstanding obligations to the micro lender with a declining balance reflecting all loan repayments.
(2) A micro lender shall inform the borrower in writing, prior to committing to the loan, of his or her right to choose the intermediary and insurance company of the borrowers choice.
(3) A micro lender shall not add any surcharge, fee or additional premium above the actual cost of insurance as stipulated by the insurer.
(4) A micro lender shall not act as the insurer of a credit life insurance policy and shall disclose to the borrower any fee, commission, remuneration or benefit received by the micro lender in relation to that insurance.
(1) A micro lender shall not charge an unreasonable maximum total monthly cost of credit rate with regard to a loan agreement and the Regulatory Authority may at any stage of the borrowing and related loan agreement, whether a complaint has been received or not, ask an independent person to investigate and report on the matter to the Regulatory Authority.
(2) The Regulatory Authority may issue operational rules, directives or guidelines stipulating the maximum total monthly cost of credit rate, the maximum annual interest rate and the maximum total cost of credit.
(3) The Regulatory Authority may, where any micro lender fails without reasonable explanation to comply with the operational rules, directives or guidelines issued under subregulation (2), determine any loan agreement entered into by the micro lender as an unfair practice in terms of section 68 of the Act.
A micro lender who is a juristic person shall adhere to the best practices of corporate governance for the size and complexity of its business.
25. Submissions of information to Regulatory Authority
(1) A micro lender shall within five business days, inform to the Regulatory Authority, in writing, where-
(a) the micro lender or any of its branches ceases to operate;
(b) the micro lender becomes unable to discharge any of its debts promptly and in full;
(c) there is a change in contact numbers or address of the micro lender; or
(d) there is a change in the business affairs of the micro lender that has or may have a negative effect on the borrowers.
(2) A micro lender shall, within 90 days of the end of its fiscal year, complete and submit to the Regulatory Authority, a compliance report in Form 6 as set out in the Schedule.
(3) A micro lender who fails to submit any information required under these Regulations may be declared by the Regulatory Authority as not carrying on business with integrity, prudence and professional skill and shall be liable to a civil penalty specified under section 91 of the Act to be imposed by the Regulatory Authority.
26. Periodic and other returns of micro lender
(1) A micro lender shall, within 90 days of the end of its fiscal lender year, lodge with the Regulatory Authority, annual returns in Form 7 as set out in the Schedule.
(2) The Regulatory Authority may, from time to time request a micro lender to lodge any other periodic returns or any other information.
SCHEDULE
Form 1
APPLICATION TO BE LICENSED AS A MICRO LENDER
(reg 3(2))
Address of applicant: ...................................................................................................
...................................................................................................
...................................................................................................
Date ....................................................... 20.........
To:
The Chief Executive Officer
Non-Bank Financial Institutions Regulatory Office
Private Bag 00314
Gaborone
Botswana
I/We, the undersigned, do hereby apply for a license in terms of section 43 of the Non-Bank Financial Institutions Regulatory Authority Act (Cap. 46:08) to operate a micro lending business in Botswana.
I/we have taken note of sections 92-95 of the Non-Bank Financial Institutions Regulatory Authority Act regarding the consequences of giving false or misleading statements to the Regulatory Authority or falsely holding out as being licensed.
PART I - APPLICANT AND BUSINESS INFORMATION
1. Name of applicant ..........................................................................................................................................
2. Tradingn ame(s) of applicant ............................................................................................................................
Provide all the names if different ......................................................................................................................
3. Legal status of applicant (mark with x) .............................................................................................................
Sole ownership/
Individual
Private company
Public company
Partnership
Other (specify)
I/we take note that Regulatory Authority will not allow Micro Lenders to conduct additional activities parallel to those that the Micro Lender was licensed for without prior notice and approval by the Regulatory Authority. Permission to conduct such activity (ies) will only be granted upon the Regulatory Authoritys physical inspection of the said premises.
4. Official registration number of the above legal status ............................................................................................
5. Date of commencement of trading as a Micro Lender (dd/mm/yy) .........................................................................
6. Financial year end (dd/mm/yy) ..........................................................................................................................
7. Income tax registration number .........................................................................................................................
8. VAT registration number (if applicable) ...............................................................................................................
9. Contact details of the applicant (head office if applicable) .....................................................................................
Physical address .............................................................................................................................................
Postal address ................................................................................................................................................
Landline telephone number ...............................................................................................................................
Fax number .....................................................................................................................................................
E-mail address .................................................................................................................................................
Website ..........................................................................................................................................................
Note: Similar details to be provided if there are any branches with a different address. Provide on separate sheet of paper.
10 Contact details of principal officer
Title ..................................................................................................................................................................
Full name(s) ......................................................................................................................................................
ID number: ........................................................................................................................................................
Telephone number (office) ...................................................................................................................................
E-mail address ..................................................................................................................................................
Note: The principal officer means the person responsible for the daily management of the principal office of the Micro Lender in Botswana. Provide short Curriculum Vitae to show experience.
11. Auditor/Accountant
Note: Refer to Rule 18(6) of the Rules of Business Operation for Micro Lenders to ascertain whether an auditor or accountant should be involved.
Name of firm/person ...........................................................................................................................................
Physical address ..............................................................................................................................................
Postal address ...................................................................................................................................................
Name of responsible person (if a firm) ...................................................................................................................
Telephone number ..............................................................................................................................................
Fax number .......................................................................................................................................................
E-mail address ...................................................................................................................................................
Professional registration number/practice number ..................................................................................................
Name of Professional body registered with ............................................................................................................
12. Banker
Name of bank .....................................................................................................................................................
Branch name .......................................................................................................................................................
Name of holder of main business account for lending business ................................................................................
Account number ..................................................................................................................................................
I/we enclose an original letter from my/our bank confirming the above.
Note: If there is more than one such account due to branches for instance, provide full details.
PART II - CONTROLLER(S) OF THE MICRO LENDER
Note: The definition of a controller is provided in section 4 of the Non-Bank Financial Institutions Regulatory Authority Act.
13. Provide the following in respect of each of the above persons:
First Name(s)
Surname
ID Number
Nationality
Designation
(Owners,
Directors and
Senior
Management)
In case of
Owners,
please provide
percentage of
ownership
Note: Attach Curriculum Vitae for each controller and indicate any tertiary qualifications, abbreviated employment history and specific contribution to be made in respect of the lending business.
PART III - SALIENT FINANCIAL INFORMATION
14. The following salient financial information is hereby provided:
Description
At Most recent
Financial Year End
(Pula)
At Date of Application
(Pula)
(a) Aggregate value of principal amounts still to be repaid
(b) Aggregate value of all future payments
(c) Less: provisions relating to (b) above (refer note 1)
Net value of loan/debtors book (b) - (c)
Number of contracts
Number of borrowers
Note 1: Provisions are those amounts that will with reasonable probability not be paid.
Note 2: A copy of your most recent set of financial statements, if applicable, must also be provide
PART IV - FUNDING
15. The existing and/or intended sources of funds to be utilised in the business are as follows:
Type of Funding
Approximate Percentage
Own funds
Borrowed funds
Donor funds
Any other
Note: A Micro Lender is not allowed to solicit and/or accept funds (deposits) from the public. If members of the public wish to invest in a Micro Lender, they do so by acquiring a stake in the business either through an equity contribution or the lending of funds.
PART V - DESCRIPTION OF BUSINESS
16. Applicant must provide a description of the business (existing and/or proposed business for next two years) describing the main product(s) including an indication of the total monthly cost of credit rate associated with each product, marketing methods, client focus, geographical spread of business and branches, number of persons to be employed, methods to ensure compliance with statutory responsibilities, administrative procedures and control. (Use separate piece of paper).
17. Describe briefly the system to be used to assess the credit worthiness of a borrower and policy regarding the refusal of an application for a loan.
18. Describe briefly the collection methods and systems to be used.
19. Do you, as the entity doing lending business, engage in any other activity than the lending business hereby applied for? Yes ................. No.....................
If yes, please provide details
........................................................................................................................................................................
20. Which of the following ancillary products does the applicant or its holding company or subsidiary or associate sell, or intends to sell, in conjunction with the lending products applied herewith:
Life insurance ...................................................................................................................................................
Funeral cover ....................................................................................................................................................
Credit life insurance .........................................................................................................................................
Short term insurance ........................................................................................................................................
Other (specify) ..................................................................................................................................................
Explain the relative importance and volumes of these products in relation to the lending business applied herewith ........................................................................................................................................................................
Provide a schematic group structure and indicate whether the entity operates as a principal or intermediary for that specific product
........................................................................................................................................................................
........................................................................................................................................................................
PART VI - DECLARATION OF NATURAL PERSONS
This part must be completed and signed by each natural person mentioned in Part II (make additional copies if necessary).
Declaration
I/We, the undersigned, declare that the above information is true and correct to the best of our knowledge and belief and undertake to provide any other information that may be required by the Regulatory Authority.
I /We, the undersigned, declare that none of us, except as indicated hereafter, are disqualified in terms of any of the disqualifications as mentioned in paragraph ..................... of the Rules of Business Operations published in the Government Gazette No........................................ dated .................................. 20 .................
I/We, the undersigned, hereby give permission to the Botswana Police Criminal Record Center to furnish the Regulatory Authority or its authorised agents with my/our previous convictions or any relevant information in their possession, including any directions by the Court for my/our detention in a mental hospital or prison.
I/We hereby indemnify the Botswana police criminal center, its employees, the Regulatory Authority, its agents and its employees and hold them harmless against any claims by myself/ ourselves or any other person that may arise out of or be connected with such disclosure as well as any legal costs, including attorney and client costs.
First Name and Surname
ID Number
Signature
Date
ATTACHMENTS
I/We enclose the following:
1. Non-refundable application fee of P5 000 (Five Thousand Pula)
2. All additional information as to be provided in Application form above;
3. Articles of Association or any document by which the applicant is constituted (if applicable);
4. Certificate of Incorporation from Registrar of Companies (Ministry of Trade and Industry) (if applicable);
5. Copy of a document showing income tax registration number;
6. A copy of any other registration or licensing certificate (if applicable);
7. Copy of latest financial statements of the business (if already conducting lending business).
Yours faithfully
......................................................
Authorised signature
GENERAL NOTES:
1. Where an answer or documentation requested above is not known or available it is essential that this be brought to the attention of, and explained to, the Regulatory Authority. Any application not fully completed will be returned to the applicant.
2. Any controller and/or principal officer appointed after the approval of a license must within 30 days of such appointment complete and submit PART II and PART VI of this Form to the Regulatory Authority.
3. Prospective applicants are invited to hold informal discussions with the Regulatory Authority prior to formal application.
4. A prospective applicant need to establish as a company in Botswana, if applicable, before formal application.
Form 2
LICENCE TO CARRY ON A BUSINESS AS MICRO LENDER
(reg 4(1))
Certificate No. 00000/CM
NON-BANK FINANCIAL INSTITUTIONS REGULATORY AUTHORITY
REPUBLIC OF BOTSWANA
NON-BANK FINANCIAL INSTITUTIONS REGULATORY ACT
(Cap. 46:08)
MICRO LENDER LICENSE
_________________________
This is to certify that ........................................... has been duly licensed by Non-Bank FinancialI nstitutions Regulatory Authority to carry out the business of MICRO LENDING
This licence is not transferable and remains the property of the Non-Bank Financial Institutions Regulatory Authority
Dated this ................... day of .................... 20................... in Gaborone.
Signed:...........................................................
CHIEF EXECUTIVE OFFICER
Form 3
APPLICATION TO OPEN A BRANCH OFFICE OF A MICRO LENDING BUSINESS
(reg 4(3))
Address of applicant: ...................................................................................................
...................................................................................................
...................................................................................................
Date ....................................................... 20.........
To:
The Chief Executive Officer
Non-Bank Financial Institutions Regulatory Office
Private Bag 314
Gaborone
Botswana
I/We, the undersigned, do hereby apply for approval to open a branch in terms of section 43 of the Non-Bank Financial Institutions Regulatory Authority Act to open a micro lending business in Botswana.
I/We have taken note of sections 92-95 of the Non-Bank FinancialI nstitutions Regulatory Authority Act regarding the consequences of giving false or misleading statements to the Regulatory Authority or falsely holding out as being licensed.
PART I - APPLICANTS INFORMATION
1. Name of applicant .............................................................................................................................................
2. Trading name of this branch of the applicant ........................................................................................................
3. License number allocated by the Regulatory Authority ........................................................................................
4. Legal status of licensed Micro Lender ..................................................................................................................
5. Will this branch engage in any other activity than that of the approved license?
If so, please provide details .................................................................................................................................
6. Contact details of the applicant (Head Office)
Physical address ...............................................................................................................................................
Postal address ..................................................................................................................................................
Telephone number .............................................................................................................................................
Fax number ......................................................................................................................................................
E-mail address ..................................................................................................................................................
7. Contact details of the applicant (branch office)
Physical address ...............................................................................................................................................
Postal address ..................................................................................................................................................
Telephone number .............................................................................................................................................
Fax number ......................................................................................................................................................
E-mail address ..................................................................................................................................................
8. Contact details of responsible person at branch
Title ......................................................................... Name ..............................................................................
Surname ...........................................................................................................................................................
Telephone number (office) ...................................................................................................................................
E-mail address ..................................................................................................................................................
9. Products marketed or intended to be marketed in this branch:
Micro lending products (yes /no) .........................................................................................................................
Any other (yes/ no) ............................................................................................................................................
10. Which of the following ancillary products does the applicant sell, or intends to sell, in conjunction with its lending products from this branch, i.e. as an intermediary?
Life insurance ....................................................................................................................................................
Funeral cover .....................................................................................................................................................
Credit life insurance ............................................................................................................................................
Short term insurance ..........................................................................................................................................
Other (specify) ...................................................................................................................................................
Explain shortly the relative importance and volumes of these products in relation to the micro lending products .........................................................................................................................................................................
.........................................................................................................................................................................
PART II - RESPONSIBLE PERSON OF THE APPLICANT IN THE BRANCH
11. Any new person assuming general management, control and reporting responsibilities for the branch must complete PART II and PART VI of Form No. 1 of this Regulation.
Provide separately.
PART III - DESCRIPTION OF BUSINESS
12. Any changes to the original description of the business as approved should be noted.
I/We confirm that the information contained in this application is accurate and complete. Yours Faithfully:
Applicant: ........................................................... Principal Officer: ..........................................................
Date .................................................................... Date ...........................................................................
Name .................................................................. Name .........................................................................
Capacity ........................................................... Signature .....................................................................
Signature
Note: If this application is completed on behalf of a juristic person, attach proof of authorisation.
ATTACHMENTS
I/We enclose the following:
1. Non-refundable application fee of P1,000 (One Thousand Pula)
2. All additional information as to be provided in the Application form above.
GENERAL NOTES:
Where an answer or documentation requested above is not known or available, it is essential that this be brought to the attention of, and explained to, the Regulatory Authority. Any application not fully completed will be returned to the applicant.
Form 4
CONSENT OF SPOUSE
(reg 9 (3) (b))
I, ..................................................................................................................................................................
the undersigned, married in community of property to
.....................................................................................................................................................................
hereby consent to my spouse binding himself/herself to this
[v]* ...................................................................................................................................................................
as surety and co-principal debtor for the indebtedness of the Debtor(s) to the Micro Lender.
Consenting Spouse:
Full Name: ................................................................................................................................................
Identity Number: .......................................................................................................................................
Address: ..................................................................................................................................................
Signature: .................................................................................................................................................
Date: ........................................................................................................................................................
Witnesses:
1. Full Name: ................................................................................................................................................
Address: ..................................................................................................................................................
Signature: ................................................................................................................................................
Date: .......................................................................................................................................................
2. Full Name: ................................................................................................................................................
Address: ..................................................................................................................................................
Signature: ................................................................................................................................................
Date: .......................................................................................................................................................
Form 5
MINIMUM REQUIREMENTS TO BE INCLUDED IN THE LOAN AGREEMENT
(reg 11)
Any loan agreement between a lender and a borrower need to comply with the minimum requirements as set out in this sample agreement.
FRONT PAGE
PART A
Particulars about the lender
Name of lender ...............................................................................................................................................
License number ..............................................................................................................................................
Authorised address .........................................................................................................................................
Address of branch (if applicable) .......................................................................................................................
Contact number(s) ...........................................................................................................................................
Website (if available) ........................................................................................................................................
Particulars of the borrower
Name of borrower .............................................................................................................................................
ID number ........................................................................................................................................................
Postal address .................................................................................................................................................
Physical address ..............................................................................................................................................
Contact numbers: (home) ..................................................................................................................................
Work ...............................................................................................................................................................
Mobile .............................................................................................................................................................
Any other (where necessary)..............................................................................................................................
PART B
Details of the loan ..............................................................................................................................................
Type of loan .......................................................................................................................................................
Principal amount ...............................................................................................................................................
Total amount to be repaid ...................................................................................................................................
Number of instalments ........................................................................................................................................
Amount of each instalment .................................................................................................................................
Date of loan .......................................................................................................................................................
Date(s) of instalment(s) .......................................................................................................................................
Total cost of credit and total cost of credit rate ......................................................................................................
FROM SECOND PAGE ONWARDS
1. Undertaking by the borrower to repay the full amount on due date(s).
2. Repayment arrangements (e.g. cash, electronically, deductions from wages or salary by employer or debit order) and applicable authorisations and indemnities.
3. Procedures and cost implications in case of failure of the borrower to adhere to the terms of the agreement. Reasonable penalty fee are to be stipulated and under what circumstances and added to the total amount to be repaid.
4. Confirmation by the borrower that all the required statutory disclosures have been made to the borrower and that the dispute resolution process been explained.
5. Confirmation by the borrower that he or she is in a position, financially and legally, to enter into the agreement.
6. Confirmation by the borrower that he or she has truthfully disclosed all relevant facts regarding his or her own current and expected future financial position.
7. Consent by the borrower that all legal means can be employed by the lender to establish the borrowers credit worthiness.
8. Early repayment conditions and procedures.
9. Whether insurance is taken out on behalf of the borrower and the associated costs.
10. Borrower undertakes to inform lender if any of his or her personal particulars change.
11. Cooling-off arrangements with a minimum of two calendar days.
12. Document to contain the entire agreement.
13. Statement and signature by the borrower that the agreement was explained and all blank spaces were duly filled before the borrower signed the agreement.
14. Any other normal legal clauses can be added.
Form 6
COMPLIANCE REPORT
(reg 25 (2))
For the period from ......................................................................................... to ...............................................
I/We, ................................................................................................................................................................. in my/our
capacity as ........................................................................................ of ............................................................... (name of Micro Lender)
do hereby wish to report as follows:
1. The necessary disclosures as specified in Regulation 7 of the Rules of Business Operation for Micro Lenders (hereafter just referred to as "the Regulation") as published in Government Gazette No .......................................... dated ............................................................... is in place.
2. The Micro Lender has complied with Regulation 8 of the Regulation regarding marketing and advertising.
3. The Micro Lender has complied with Regulation 9 subsections (6) (a) and (b) of the Regulations and has not failed to conduct a proper assessment or advanced a loan where it should not have.
4. The Micro Lender has complied with Regulation 10 regarding the provision of a salient features document and Regulation 11 (3) and (4) regarding signature, copy and explanation of the agreement to the borrower.
5. The Micro Lender has kept a record of all unresolved disputes and has notified the Regulatory Authority as requested in Regulation 21 (5).
6. The Micro Lender abided with the guideline in Rule 23.
7. In general, the Micro Lender has complied with the requirements of the Micro Lending Industry Regulations.
8. In case of non-compliance; the Micro Lender hereby discloses the following areas of non-compliance and the steps taken by the Micro Lender to rectify such non-compliance.
(Please list the areas and provide detailed explanation on separate paper).
Signed on behalf of the board of Directors/Controllers/Members of:
.............................................................................................................................................................................................
Date ................................................................................................................
Name ..............................................................................................................
Capacity .........................................................................................................
Form 7
FINANCIAL AND STATISTICAL ANNUAL RETURN
(reg 26 (1))
Name of licensed Micro Lender: ..........................................................................................................................
NBFIRA Licence number: ...................................................................................................................................
Company/Partnership/other registration number: ...................................................................................................
Reporting period: from ................................................................. to ...................................................................
Name of person completing this form: .....................................................................................................................
Designation: ..................................................................................................................................................
Contact information: E-mail: ...........................................................................................................................
Telephone number: ......................................................................... Mobile: ....................................................
PART I - SALIENT INFORMATION
Table 1: Reporting Period Analysis
Description
Current Financial
Period
Previous Financial
Period
Total Pula value of loans disbursed during the period
Total number of loans disbursed during the period
Total value of loan Book at end of the period
Total number of clients in the book at last day of reporting period
Total number of employees on last day
Total number of agents of period and broker (if any)
Note 1: Value means only the principal amounts.
Table 2: Analysis of original terms of agreements approved during reporting period
Original
Term
0-3
months
>3-6
months
>6-9
months
>9-12
months
>12-18
months
>18-24
months
>24
months
Total
Aggregate Value
(refer to Note 2)
Number of
Agreements
Note 2: Value in tables 2 and 3 means original principal amount. Each renewal or roll over during this period counts as a new agreement and principal amount.
Table 3: Analysis of original principal amounts approved during reporting period
Original
principal
Amount
0-P300
P301-
P500
P501-
P1,000
P1,000-
P1,500
P1,501-
P2,000
P2,001-
P3,000
>P3,000
Total
Aggregate value
(note 2)
Number of
Agreements
Average
Loan Book Risk Analysis
Table 4: Age analysis of overdue payments (in Pula) (refer to Note 3)
Current
(<30 days)
31-60 days
61-90 days
91-120 days
120 + days
Total
Note 3: Micro Lender to define "overdue" in terms of its guidelines and payment means total payment that includes principal amount and cost of credit portion.
Table 5: Age analysis of principal amounts involved corresponding to Table 4 (in Pula)
Current
(<30 days)
31-60 days
61-90 days
91-120 days
120 + days
Total
Table 6: Age analysis of number of agreements overdue corresponding to Table 4
Current
(<30 days)
31-60 days
61-90 days
91-120 days
120 + days
Total
Table 7: Indicate fees for following sized transactions
Principal Amount
P300
P500
P800
P1,000
P2,000
P3,000
P5,000
P10,000
(a) Initial fee:
(b) Ongoing service fee
(c) Any other fees, specify:...................
Table 8: Indicate total monthly cost of credit rate for following transactions
Principal
Amount
P300
P500
P1,000
P3,000
P5,000
P10,000
Term:
1 month
3 months
6 months
9 months
12 months
24 months
Table 9: Analysis of repayment methods
Repayment Method
Number of Agreements
Value of payments made
during last month of
reporting period
Cash
Stop/bank order
Bank Deposit slip
Cheque
Third party collection agent
Bank card
Other (specify)
Mobile pay
Internet pay (electronic transfer)
PART II - FINANCIAL STATEMENTS
INCOME STATEMENT FOR THE PERIOD ENDING
Description
Current Financial
Year
Previous Financial
Year Income
(a) Gross repayments excluding capital portion in loan repayments
(b) Other income related to loan book (specify)
(c) Commissions and fees from insurance
Gross income from money lending
(d) Other income
Total income
Expenses
(e) Bad debts written off
(f) Interest paid
(g) Change in provision for bad debts
(h) Operational expenses
(i) Other expenses
Total expenses
Net income
Less Tax
Net income after tax
BALANCE SHEET AS AT...........................................................................................................................
Description
Current Financial
Year
Previous Financial
Year Income
Assets
(a) Gross loan debtors (Note 4)
(b) Less: provision for bad debts
(c) Less: other provisions
(d) et loan debtors
(e) Current and other assets
Total assets
Liabilities
(f) Long-term interest bearing liabilities (note 5)
(g) Short-term interest bearing liabilities
(h) Other current liabilities
Total liabilities
Equity
(i) Stated capital
(j) Retained earnings
Total equity
Note 4: Gross loan debtors are the aggregate of all the future gross repayments to be made after the reporting date.
Note 5: Long-term liabilities are those liabilities with an outstanding term more than 12 months, and short- term liabilities are those with an outstanding term 12 months and less, at the reporting date.
DECLARATION BY AUDITOR/ACCOUNTANT
Information contained in Financial and Statistical Return as prescribed in Regulation 8 (1) and Form 3 in the Second Schedule of the Micro Lending Industry Regulations.
In terms of Rule 18 (6) of the Rules of Business Operation for Micro Lenders:
"The annual return as prescribed in Regulation 8 of the Micro Lending Industry Regulations must be verified for its accurateness by a resident auditor who is a member of a recognised professional body as approved by the Regulatory Authority, in the case where the aggregate of the total cost of credit repaid during the specific reporting period were more than P5,000,000 otherwise by a resident accountant who is a member of the Botswana Institute of Accountants or any other recognised professional body approved by the Regulator".
Name ........................................................................................................................................
Professional body (if applicable) ...................................................................................................
Membership number (if applicable) ................................................................................................
Report of the Auditor/Accountant (delete where applicable) regarding the Financial and Statistical
Return ........................................................................................................................................
of ............................................................................................................ (name of Micro Lender)
NBFIRA license number is ..............................................................................................................
Declaration A: Accountant (In terms of regulation 7)
1. I/We have reviewed the accompanying Financial and Statistical Return for the year
ended ......................................................................................................................................
2. Management / owner is responsible for the preparation and fair representation of the figures in this Return in accordance with International Financial Reporting Standards.
3. My/Our responsibility is to express an opinion on the accuracy of these figures. I/We have conducted enough reasonable checks, taking the size and complexity of the business of the Micro Lender into account, to obtain reasonable assurance whether the Return is free from material misstatement.
4. In my /our opinion, the Return has been properly prepared in accordance with the notes to the Return and is consistent with the records on which these have been based.
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Signature (Registered Accountant)
Date .....................................................................
Contact number .....................................................
Declaration B: Auditor (In terms of regulation 7)
Report of the auditor regarding the Financial and Statistical Return
of ............................................................................................................. (name of Micro Lender).
NBFIRA licence number is ..............................................................................................................
1. I/ We have audited the accompanying financial statements which comprise the balance sheet as of ......................................................... and the income statement, statement of changes in equity and cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory notes.
2. Management's responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
3. Auditor's responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
4. Report on other legal and regulatory requirements
We have also audited the accompanying disclosures required in terms of Form 6 (Part I) of the Regulations. These disclosures are the responsibility of the companys management. Our responsibility is to express an opinion on the disclosures based on our audit.
5. In our opinion, the accompanying disclosures required in terms of the Form 6 (Part I) of the Regulations have been properly prepared in accordance with the relevant requirements and are consistent with the annual financial statements and the accounting records on which these have been based.
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Signature (Registered Accountant)
Date ...................................................................................
Contact Number ...................................................................
Signature ............................................................................
[i] Full name of the commodities exchange to be licensed.
[ii] Provide physical address of the registered office of a company registered in terms of the Companies Act (Cap. 42:01).
[iii] Provide full physical and postal address.
[iv] The application should be signed by the Principal Officer or Director of the company.
[v] Surety, Loan agreement
