The cost of buying used vehicles to meet business or personal needs can at times be difficult due lack of access to funds. For this reason, CFAO Mobility Zambia Limited has signed MOUs with leading Banks and Non-Banking lending institutions to provide loans for business and individuals who may require it to finance the purchase of a vehicle.

Benefits

Some of the benefits of getting a loan as opposed to outright cash purchase are.

1. A loan allows clients to have access to a higher standard of motor vehicle than what they would afford by making outright payment using their own resources.
2. Making smaller monthly repayments can help a business or individuals obtain a product that they would not generally be able to afford.
3. Repayments can be structured to provide greater flexibility so that repayments can best accommodate the individual cash flow requirements of a specific business or individuals income.
4. For business it allows for conservation of operating capital, and it frees up working capital for inventory, expansion and other emergencies thereby allowing the business to focus on other growth areas.

Requirements

The requirements vary based on the lending institution, but generally the requirements are:

Individuals

1. Minimum age is 18 years and maximum age is 60 years.
2. Customer should be in confirmed employment.
3. The maximum principal loan amount is K1,000,000.00 (USD50,000) depending on affordability. (Salaried individual should not exceed 60% of gross pay).
4. Vehicle being financed may be used as security/collateral.
5. The maximum Loan Term up to 36 months
6. The minimum Loan Term is 6 months.
7. The interest rate depends on market conditions, check with respective lender.
8. Income Documentation (3 latest pay- slips or 6 months’ worth fluctuating commission earners)
9. Individual Bank statement for last 3 months
10. Identification card i.e., NRC or Passport
11. Copy of Employment contract or Confirmation letter.
12. Proof of residence: Employment Introductory letter, utility bill, tenancy agreement, land

rates etc.2

14. Dully signed application form

Self Employed/Company

1. Proof of operating premise: utility bill, tenancy agreement, land rates
2. Identification card – NRC of Directors or sole proprietor designated to sign the facility documents as per Board Resolution
3. Bank Statements for at least 12 months
4. Digital/Passport size photo for Directors /Sole proprietor designated to sign the facility documents as per Board Resolution
5. Preferably Audited Financial Statements and Recent Management Accounts (Audited not mandatory)
6. Duly signed Application form
7. Company Documentation.

• Business profile
• Certificate of incorporation
• Stamped PACRA print out
• Articles of Association/Partnership deed or equivalent
• Tax Clearance Certificate
• Board Resolution

For more details on how call us now on +260 971 268 000or visit any of our branches in Lusaka, Kitwe, Solwezi and Livingstone.