Vehicle Asset Finance Loan

The Vehicle Asset Finance Loan is a specialized facility designed to help customers purchase motor vehicles for personal or business use. This product is available to a wide range of clients, including individual salaried employees, Small and Medium Enterprises (SMEs), corporates, and public institutions . The facility can be used to finance staff motor vehicle schemes, making it particularly valuable for organizations looking to provide vehicle benefits to their employees .

The loan amount is determined based on the value of the vehicle being purchased and the applicant's repayment capacity. Typically, the facility finances a significant portion of the vehicle's purchase price, with the customer contributing an initial deposit. The exact loan-to-value ratio is assessed during the application process based on the type of applicant, the vehicle being financed, and the overall risk assessment conducted by the Bank.

Repayment terms are structured to be flexible and manageable. Customers can benefit from extended repayment periods that align with the expected useful life of the vehicle. For individual salaried customers, repayments are typically structured as monthly deductions from salary, ensuring convenient and automated loan servicing. Corporate and SME clients may have access to customized repayment schedules that match their business cash flow cycles.

The vehicle being purchased serves as the primary security for the loan. The Bank registers a lien or chattel mortgage on the vehicle, ensuring that the asset secures the outstanding loan balance throughout the repayment period. Additional security may be required depending on the applicant's risk profile and the loan amount. Mandatory insurance cover includes comprehensive motor vehicle insurance to protect the asset against loss, damage, or theft during the loan term.

For individual salaried applicants, you must have an active account with NBS Bank and provide valid identification such as a National ID or passport. You will need to submit three recent payslips or a letter of salary confirmation from your employer. A clean Credit Reference Bureau (CRB) report is required, along with proof of residence such as a water or electricity bill. For corporate or SME applicants, additional documentation is required, including board minutes approving the loan, audited accounts for preceding financial periods, management accounts, Memorandum and Articles of Association, and a board resolution to borrow from the Bank. All applicants must provide a proforma invoice or quotation for the vehicle being purchased.

Interest rates are calculated as the Base Rate plus a Risk-Based margin, determined based on the applicant's risk profile and the nature of the facility. A processing fee applies as per the Bank's current tariff schedule. Mandatory insurance includes comprehensive motor vehicle insurance to cover the asset, as well as Life Cover to protect the loan in the event of the borrower's death. The insurance ensures that in case of unforeseen circumstances, the outstanding loan balance is covered, protecting both the borrower and their beneficiaries.