Staff Motor Vehicle Loan Scheme

The Staff Motor Vehicle Loan Scheme is a facility that gives corporates the opportunity to help their members of staff access car loans through NBS Bank . The Bank enters into an agreement with the corporate customer to deduct and remit installments to the bank on behalf of employees . This scheme is designed for companies that want to offer vehicle financing as an employee benefit, with the corporate customer serving as the facilitator by ensuring loan repayments are deducted directly from staff salaries and remitted to NBS Bank.

The repayment period depends on whether the vehicle being purchased is brand new or second-hand. For brand new vehicles, employees can access a repayment term of up to 60 months, which is five years . For second-hand vehicles, the maximum term is 36 months, which is three years . This distinction allows employees to have longer repayment periods for more expensive new vehicles while offering shorter, more manageable terms for pre-owned cars.

The Staff Motor Vehicle Loan Scheme offers two significant advantages for companies. First, it helps companies increase employee morale and retention by providing a valuable benefit that encourages staff loyalty . Second, it results in low maintenance costs of vehicles since members of staff tend to be more careful whenever they are using their personal vehicles compared to company-owned fleet vehicles . This dual benefit means employers can improve staff satisfaction while potentially reducing vehicle maintenance expenses associated with company cars.

The Bank enters into a formal agreement with the corporate customer to deduct and remit installments to the bank . Under this arrangement, when an employee applies for a vehicle loan through the scheme, the employer commits to deducting the monthly loan repayment directly from the employee's salary and sending those funds to NBS Bank. This automated deduction system reduces the risk of missed payments and provides convenience for both the employee and the Bank. The scheme is specifically designed for corporates that want their members of staff to access car loans through NBS Bank .

While the standard Asset Finance Loan is available to individual customers and businesses for acquiring various assets including vehicles, the Staff Motor Vehicle Loan Scheme is specifically structured as a corporate arrangement . The key difference is the involvement of the employer as a guarantor or facilitator through the salary deduction agreement. In the standard Asset Finance Loan, the borrower is directly responsible for repayments, whereas in this scheme, the employer takes an active role by deducting installments at source and remitting them to the Bank. Both products are listed separately under NBS Bank's credit offerings for corporate customers .

The Staff Motor Vehicle Loan Scheme is available to corporates, including companies and institutions, that want to provide vehicle financing as an employee benefit . The Bank's corporate banking products include this scheme alongside other offerings such as the Corporate Current Account, Asset Finance Loans, and Corporate Overdraft Facility . NBS Bank provides retail and corporate banking services to individuals, small and medium enterprises (SMEs), corporates, and public institutions in Malawi , so public sector organizations and government institutions may also be eligible to establish this scheme for their employees.