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Motor Vehicle Loan

Enables customers have access to financing to acquire motor vehicles for personal use. This facility does not cover cars that are exempted from duty.

 

ITEM

COST / REQUIREMENT

 

Minimum loan amount

TZS 5 million or USD equivalent

 

Maximum loan amount

TZS 100 million or USD equivalent

 

Maximum repayment period

60 months

 

Interest rate

Base rate + or – 1%

 

Processing fees

1% if approved for processing

 

Customer’s contribution

20% (for both brand new and second hand vehicles)

 

% of financing

80% (for both brand new and second hand vehicles)

 

Security

Chattel Mortgage on the vehicle

 

Insurance cover

Comprehensive insurance policy for the car is mandatory.BANK OF AFRICA - TANZANIA to assist by offering Insurance Premium Financing or arrange for this from the various insurance partners. 2% life insurance against death or permanent disability to be arranged.

 

Turn around time

1 week for facilities less than TZS 50 million

2 weeks for facilities above TZS 50 million

Terms and conditions

Total loan repayment should not exceed 1/3 of their net salary.

The interest rate is on a reducing balance basis.

The bank can revise the interest rates depending on the market conditions without prior notice to the customers.