Car loan (Rent to Buy)

Description

The car loan scheme is meant to enable members to purchase motor vehicles through a rent-to-buy model whereby the member raises an initial deposit, secures their motor vehicle, then pays for it over a period of six months. It is linked to the Motor vehicle purchase savings account, and also to the Monthly Savings account. The amount of loan to be advanced is dependent on the member’s savings as well as capacity to repay. Motor vehicles purchased under this scheme will be placed under the Collateral Registry until the loan is fully repaid.

Eligibility

The motor vehicle loan/rent-to-buy scheme is exclusively for members of the SME Association of Zimbabwe as well as the SMEAZ SACCOS. You must be running a business which generates enough cash flows to be able to service the loan. Members are eligible to apply for car loans or rent-to-buy arrangements, subject to the limit of their shares and savings, as well as ability to repay. You can also get other members to co-guarantee you for the loan.

Process

For you to access this facility, the following is the process that you will go through:

1. You must be a member of both the SME Association of Zimbabwe, as well as the SMEAZ SACCOS.
2. You must have savings that are at least one sixth of the purchase amount of the vehicle.
3. Your business will need to have been assessed to determine your ability to service the loan. This is done after you become a member of the SME Association of Zimbabwe.
4. You will need to identify a suitable vehicle which has all the necessary clearances. If importing, this will need to be done through a reputable agent, and the vehicle must meet all necessary requirements from the relevant regulatory agencies.
5. Once the vehicle has been secured, the registration book will remain in the custody of the SMEAZ SACCOS until the loan is fully repaid.

Terms and Conditions

1. You will need to remain a paid-up member of both the SME Association of Zimbabwe as well as the SMEAZ SACCOS for the entire duration of the loan period.
2. Should there be any missed installments, the vehicle will be temporarily recovered and held for a period of up to 90 days until installments are regularised.
3. Should installments not be regularised within the 90 day period, the motor vehicle will be disposed of and recoupments made on the outstanding loan balance plus interest.
4. The vehicle will need to be comprehensively insured for the entire duration of the loan period. The insurance will be ceded to the SMEAZ SACCOS.
5. The vehicle may not be disposed of or in any way transferred to a third party during the loan period. It may also not be taken out of the borders of Zimbabwe for this period.

APPLY FOR LOAN

Click on the button below to apply for a loan. Note that only active members of the SMEAZ SACCOS can access the loan application page.