Bank of Africa offers loans for people who plan to but personal cars. Features of the loan and maximum amount given by the bank are:
Motor Vehicle Financing Loan
An 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.
Features of the Motor Vehicle Financing Loan
- 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.
Requirements for the Motor Vehicle Financing Loan
Requirements Salaried employee
- Completion of Loan Application form – Instant cash form
- Undertaking from the employer
- Copy of identity card
- Latest Pay slip
- Proof of residence (Local Council letter/Utility bill)
- Proof of nationality (Passport/Birth certificate) if a foreigner
- Appointment/contract letter
- Proforma Invoice from vendor
- SME/ corporate application requirements including account statements for six months.
- SME application forms
Car loan is important especially if you are planning to have a car hire company or when it is a must to own a car. In Uganda, most people won’t afford to own a car, which forces them to go for motor vehicle financing.This is the only way to buy a car when you don’t have a lump sum amount in your bank.