This applies to a member who wishes to acquire a vehicle. The SACCO shall carry out all the transactions on behalf of the member for the acquisition of the vehicle. The following shall apply to this kind of loan;
- This should be co-financed by the member and the SACCO.
- The member will recommend to the SACCO the type of vehicle they want to purchase and the SACCO will carry out all the necessary requirements of obtaining the vehicle.
- The member should have at least 20% of the total cost of the vehicle in cash.
The SACCO will fund 80% of the total cost under the following conditions;
- 10% of the 80% in savings and 10% of the 80% in shares with the SACCO and the member is not eligible to withdraw the savings at any one time until the loan has been fully paid.
- URA vehicle search.
- Search with the Uganda Police traffic department.
- Repayment of the loan shall be within 24 months from the date of disbursement.
- The vehicle shall remain in the ownership of the SACCO till the loan is fully paid up by the member.
- The transfers of ownership shall be done after fully repaying the loan.
- The vehicle should be comprehensively insured and renewed on an annual basis (after acquiring the vehicle). This is met by the member.
- All costs involved shall be met by the member.
- An interest rate of 16% per annum.