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Vehicle Loan

A member may be granted a vehicle loan for the purpose of purchasing a vehicle in the following categories

  • New Vehicle
  • Used local vehicle under five(5) years
  • Roll-on roll-off vehicles under three (3) years of purchase
  • New commercial vehicles
  • Used commercial vehicle under five (5) years of manufacture
  • Used commercial vehicle over five (5) but under seven (7) years of purchase
  • Motorbike (new only) 

Criteria:

Criteria securing a Vehicle Loan

  • Vehicle loans may be granted to a member with a loan to share ratio of 2:1 such loan shall be applied as a consumer loan and will attract an interest rate of 1.25% per month on the reducing balance. A minimum share contribution of $100.00 monthly must be made.
  • Vehicle loans may be granted to a member where the member can deposit the required percentage for the loan on a share1 account specifically for the purpose of being used for collateral for the vehicle loan. Such loans shall carry an interest rate up to 1.5% per month on the reducing balance and would be entered as a vehicle loan. A minimum share contribution of $100.00 monthly must be made.
  • Vehicle loans may be granted to a member where the member can deposit the required percentage increase towards his ordinary share account and apply for the vehicle loan, where all his existing loans would be converted to 1.5% per month on the reducing balance, for the duration of the entire loan.

Qualifying Conditions:

The member must have invested in the Society the following minimum sums required in unencumbered shares

  • New vehicle - 10%
  • Used local vehicle under five (5) years - 25% of the value of the vehicle
  • Roll on Roll off vehicles under three (3) years of purchase - 25% of the value of the vehicle.
  • Used roll-on roll-off vehicles under three (3) years of purchase-30% of the value of the vehicle
  • New commercial vehicles-25% of the value of the vehicle
  • Commercial vehicle under five (5) years of manufacture -45% of the value of the vehicle
  • Commercial vehicles over five (5) years of manufacture but under seven (7) years of manufacture - 55% of value vehicle
  • Motorbike (new only) - 30% of the value of the vehicle

The member shall with the exception of new vehicles, have the vehicle evaluated at a prescribed valuator of the society.

Monthly rates of interest:

All vehicle loans shall attract the following monthly rates of interest on the reducing balance:

  • New vehicle - 1%
  • Used local vehicle under five (5) years - 1.25%
  • Roll on Roll off vehicle under three (3) years of manufacture - 1%
  • Used roll-on roll-off vehicles under three (3) years of manufacture - 1.25%
  • New commercial vehicles - 1.25%
  • Commercial vehicles under five (5) years of manufacture - 1.35%
  • Commercial vehicle over five (5) years of manufacture but under seven (7) years of manufacture - 1.5%
  • Motorbike (new only) - 1.25%

such vehicles will be held as security via an instrument of Charge where the member bears the cost of all legal fees including the release of the security.

Insurance:

  • All vehicles financed with a loan from the society shall be insured by way of a fully comprehensive insurance policy which shall be assigned to the society.
  • further, neither the insurance coverage nor the registration number or ownership or status shall be altered by the member without the consent of the society. Should the member violate or breach the above, the member shall be called upon to repay the loan immediately in full together with any and all penalties costs and charges.
  • Where fully comprehensive insurance cannot be obtained and the vehicle is over five (5) years, a third party fire and theft coverage may be accepted by the society and if so shall be accompanied by additional security.