Vehicle Loan

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.
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