First National Bank Zambia Limited (FNB) has sued a Lusaka resident, Bwalya Ng’andu holder of NRC 649981/11/1, in the Lusaka High Court for failing to pay over K360,000 credit facility.

FNB is seeking payment of all monies which as at December 9, this year, stood at K369,151.11 plus contractual interest, costs and all other charges due and owing to the bank by Ng’andu, who in 2013 resided at plot 15A Abellia Road Avondale, under a Home Loan Facility availed to him and secured by an equitable mortgage over stand no. 1832 of 7417, in Lusaka, registered in his name.

It further wants an order to foreclose on the mortgaged property, Ng’andu’s delivery of vacant possession of the mortgaged property to the bank, an order of sale of the mortgaged property by the bank, costs and any other relief the court shall deem fit.

According to an affidavit in support of originating summons, filed in the Lusaka High Court commercial registry, Lilian Mtonga, an Ongoing Credit Risk Manager in the Credit Department at FNB, stated that Ng’andu was on May 15, 2013 availed a credit facility by way of a home loan in the sum of K180,000.

She stated that the said home loan facility was secured by an equitable mortgage registered over stand no. 1832 of 7417 in Lusaka, registered in his name.

Mtonga stated that it was an agreed term of the home loan facility that interest would be charged at the bank’s Monetary Policy Committee (MPC) rate then at 9.25 percent plus a margin of 6 percent per annum compounded monthly from the date of first pay-out from the account.

“It was also agreed that interest payable under the facility would also be calculated on the basis of a 365-day year, irrespective of whether or not the year in question is a leap year; Be calculated on the daily balance owing under the facility, notwithstanding that such balance may have been increased by the debiting of interest to such balance; Accrue from day to day; Be debited to the borrowers account held with the bank, monthly in arrears; and be compounded monthly,” she stated.

Mtonga stated that it was further agreed that the said home loan facility would expire after a period of 216 months respectively from the date of draw down by which date the loan was to be repaid in full.

She added that Ng’andu was required to make monthly repayment instalments over the aforesaid months towards repayment of the loan.

Mtonga stated that the conduct of Ng’andu’s loan accounts had not been to the bank’s satisfaction as he had continually failed to meet his monthly repayment obligations.

“Despite verbal and written reminders to settle his indebtedness, the respondent (Ng’andu has failed and/or neglected to do so. That to date the credit facility remains unpaid and stands at K369,151.11 in total, as at December 9, 2019. That the respondent has no defence to the claims by the applicant (FNB),” stated Mtonga.