Loan/Debt

Bank of Baroda – Asset Financing

Posted 6 months ago

Description

Asset financing for purchase of any Trucks, Tractors / Heavy vehicles, Moveable Asset (Machinery) and Car for business purposes.

Investment Details

UGX 250 Million per Asset

Funding Procedure

Eligibility: Private and Public Limited company, Individual Businessmen, Sole Proprietorship concern, partnership firms Prior account relationship not essential. However details of the applicant’s present account (either with our Bank or with other Bank) for last six months should be studied to satisfy that the conduct of the account is satisfactory. A/c should be Standard with other Bank in case of take over. Minimum period of established business / employment – 5 years. The business should be profit making.

Contacts

General Call 0800 240 240 (Toll Free) Email: mktg.uganda@bankofbaroda.com

ADDITIONAL FMC INFO

Margin: 25% on cost of new vehicle / Asset including registration charges & one-time insurance premium of the vehicle. 40% on the cost of the old vehicle including registration charges & one time insurance premium of the vehicle. Insurance: Cost of insurance will be financed by the Bank under the above scheme, however Insurance of the Vehicle will be under one time Insurance Policy up to the tenure of the Loan. Loan to Value: Loan to Value (Exposure/ purchase price of vehicle / Asset including registration charges & one-time insurance premium of the vehicle/ asset) for: New Vehicle/ Asset: 0.75 (75.00%) New Vehicle/ Asset: 0.60 (60.00%) Interest: PLR + 2% with monthly rest. Security/Documentation: Deed of Debenture of the Asset / Vehicle. Adequate Collateral Security in the form of Tangible Fixed Assets or Cash Collateral i.e. Fixed Deposit etc. preferably 40% of the sanctioned limit, if the loan amount is above UGX .100 Million. Bank’s charge to be noted with RTO in case of vehicle. Comprehensive Insurance of vehicle with Bank Clause. Blank Transfer of Ownership Form. Original Log Book of the vehicle with our Lien noting to be kept in our record till the liquidation of Loan facility. Other Conditions: The borrower should have adequate repayment capacity to service the Vehicle Loan and other existing Loans of the business. Borrower shall have to provide Income proof supported by Income Tax / Sales Tax / Audited financial Statement. Pre-sanction inspection is to be carried out and report to be kept on record. Credit rating required as per extant guidelines, however pricing is delinked to Credit Rating. In case of finance of Old Vehicle: It should not be older than 10 years. Branch to obtain Garage Certificate of reputed Garage to ascertain the residual useful life of the vehicle i.e. the fitness certificate. Residual life of the vehicle should be at least 2 years more than the repayment period fixed for the Loan. Two Installments as per EMI of respective loan account to be paid in advance.