Motor Vehicle Financing LoanAn asset financing product with the asset financed serving as security for the borrowing
This is an asset financing product with the asset financed serving as security for the borrowing. The desired target market is individuals or organizations with existing income inflows or employees backed by regular salary payment.
This loan can be for personal and commercial use and can be used for purchasing a motor vehicle or financing of an asset.
- Loan limit is up to UGX 100,000,000
- Loan repayment periods from 12 to 48 Months
- Age of vehicle: New vehicles and used Vehicles (Imported used vehicles) manufactured after 1994
- Service Ratio: 35% of an individual's net pay for salary earners
- Collateral: Undertaking from employer, for salary earners, Logbook (simple deposit). Comprehensive insurance cover for all motor vehicles financed
- Process: Applicants to deposit of 35% of the total cost of the motor vehicle and Bank of Africa Uganda will fund only up to 65% of the value of the motor vehicle.
- For commercial vehicles, the customer should have the extra cover for additional works on the motor vehicle body needed before the vehicle can be put on the road.
- All vehicles for financing should be independently assessed to establish road worthiness.
- A report of the inspectorate of vehicles or similar authority will be required.