MOTOR VEHICLE LOAN

• The product has the following terms
• The eligible borrower must have been a member for at least 4 months and must not be above 65 years of age.
• The maximum loan amount is UGX 60,000,000/= (Sixty million Uganda Shillings only)
• The maximum loan is 10 times the share capital of the individual borrower.
• A borrower must have at least 50% share capital, 50% balance to be offset from the loan disbursed.
• The loan interest rate is 14% per annum.
• Interest on this product is charged on Reducing Balance method (amortization).
• The maximum loan repayment period is 48 months.
• A 10% penalty fee is charged for failure to remit any “Due Installment”.
• Loan repayment is by equal monthly installments.

A loan application is supported by:

1. Salary payslip of the most recent month.
2. Bank statement of most recent 3 months from the bank which receives client’s salary.
3. The guarantors must have the capacity to offset any outstanding loan amounts in case the borrower defaults.
4. Borrower’s repayment history.
5. Letter of undertaking from the employer.
6. Staff on Contract need to present a copy of the Contract document from the employer.

Institutional deductions:
The loan processing fee is 0.55% of the loan amount.
The insurance fee is 1% of the loan amount.