i. This product will enable members to buy motor vehicles and other business assets that may be approved from time to time by the BoD and management of Finnlemm SACCO Society Limited.
ii. The three times deposits rule will not apply.
iii. The member should have a deposit to loan ratio of at least 1:5
iv. Rate of interest is 1.125% per month on reducing balance.
v. Maximum repayment period is 48 months.
vi. Loan is open to offset by other loan.
vii. The asset will be jointly owned by the SACCO and the member during the loan period. The applicant to bear valuation costs, transfer costs and security perfection costs.
viii. The asset must be comprehensively insured and if movable property, be put on a tracking device
at the applicant’s cost.
ix. The asset must be presented in the office for physical inspection by the Secretariat
x. Maximum guarantee amount for the motor vehicle will be 60% of the depreciated (forced sale) value, depending on the type, state and age of the motor vehicle.
xi. The Board may refuse to accept an asset pledged as security without giving reasons for refusal
Loans granted for the purchase of motor vehicles are subject to:
i. Full comprehensive insurance coverage on the vehicle during the entire term of the loan, with the same assigned in favour of the Society.
ii. Anti-theft devices are to be installed
iii. Where a vehicle forms part of the collateral security for the loan, the member shall be required to sign a formal agreement by way of instrument of charge, thereby giving the society first lien on the subject vehicle
iv. A member shall not dispose of the vehicle under an instrument of charge unless written consent is granted by the Society.
The key requirements are as follows:
- All vehicles covered except for PSV vehicles.
- Car value is the insurance premium.
- Insurance policy must be completed and attached to the loan application.
- Member must complete the loan application.
More requirements include:-
- Cheques paid directly to the insurance company.
- Loans repaid within a period 12months.
- This loan is granted at a 1 % interest per month on a reducing balance method
N:B For payment charges refer to Tariff Guide under downloads.
Download Loan Forms Here…