VEHICLE LOAN
These are credit schemes which are set up by Muganga SACCO to support members who wish to own their vehicle. This loan enables our customers to purchase a vehicle of their choice, and this will usually be a vehicle for personal use. The vehicle can either be new or used but should have a resale value and serviceable at the time of application. |
Targeted Members
- Individual employed members working in the health sector in Rwanda (public and private);
- Self-employed members of Muganga SACCO, Cooperatives, association, companies of members operating small scale businesses.
Benefits
- Quick loans, rapid and flexible to access (not exceeding 14 days);
- Help members to realize their dream of owning cars;
- Flexible repayment period;
- Increase source of income to companies of members operating in small scale businesses;
- Vehicle considered as collateral.
Eligibility Criteria
- Individual members / cooperatives, association, companies of members operating small scale businesses;
- Regular compulsory savings;
- Individual member should be at least 18 years old;
- Being registered in Muganga SACCO Mobile Banking;
- The salary to be channeled at Muganga SACCO for at least 6 months;
- Having paid membership fees in full (Frw 50,000 of share capital);
- Have an employment contract (not in probation);
- Having 18 years old (Minimum);
- Having regular income for self-employed (Business, Rental, livestock, etc…….) and be channeled to Muganga SACCO at least for 1 Month;
- Having an adequate credit history for borrowing;
- Must not have the loan in arrears in Muganga SACCO or any other financial institution in Rwanda (blacklisted by Credit Reference Bureau);
- Vehicle should be environmentally friendly.
Products features
- Maximum amount is open up to the SACCO ceiling;
- Repayable in 5 years (60 months) maximum;
- The interest rate is 17% per annum (declining);
- Life insurance premium or individual depending on the insurer tariff;
- Applicant is required to have his/her own contribution equals to 10% of requested amount;
- Monthly installment equal to 50% of the monthly salary. If salary taken combined with other commitments, it cannot exceed 75% of salary;
- The vehicle purchased shall have a comprehensive insurance;
- Payment made to Supplier/Vendor’s account;
- The applicant himself must negotiate with the seller of the vehicle and make the transfer of ownership before payment;
- Muganga SACCO will pay the seller after collateral registration at RDB.
Requirement
- Fulfil and sign Vehicle loan application and loan agreement form;
- Copy of Identity card/Passport of applicant and his/her spouse (if married);
- Proof of status certificate of applicant (Marriage certificate; Single certificate, Widow certificate, divorced certificate) found via Irembo services;
- Salary certificate and employer engagement;
- Loan commitment form;
- Subcommittee recommendation letter;
- Employment contract or appointment letter;
- Proof of income for self-employed members;
- Account statement of other for at least 12 months for self-employed members;
- Tangible collateral of compulsory savings for self-employed members;
- Provisional purchase agreement or proforma invoice for vehicle to be purchased;
- Collateral Valuation report;
- Any other document requested by credit department to support member’s request.