What is Vehicle & Asset Financing? Vehicle and Asset Financing (VAF) is a credit product available to all dfcu Bank customers across the branch network countrywide to finance the purchase of Vehicles and Equipment.
What can be financed? Any good quality brand new or used assets up to 15 years of age including cars, trucks, buses, tractors, manufacturing equipment, printing machines, earth moving equipment, solar equipment, medical equipment, generators, Milk coolers and many more.
What products are offered under Vehicle & Asset Financing?
Finance Leases
Consumer Asset Finance
Insurance Premium Finance
Who qualifies for Vehicle & Asset Financing?
Individuals who can practically demonstrate a steady source of regular income.
Properly established businesses, sole proprietors companies, partnerships, investment clubs, and Women in Business with steady cashflows to meet the instalment payments.
What is the minimum value of an asset that can be financed? The financed amounts vary from UGX 1M to over UGX 15BN or USD equivalent. However, amounts outside this range can be considered under special circumstances.
What is the minimum and maximum finance tenor?
The minimum period is 12 months.
The maximum period is 72 months.
What are the UGX interest rate offers for assets?
10% for Women Entrepreneurs under GROW.
16% for Salaried customers.
17% for self-employed and SME customers.
Who identifies the asset and the supplier? The customer identifies the asset that suits their needs. The bank will however verify that:
It is of good and marketable quality.
It has a secondary market.
Supplier is reputable
It is not overpriced
Who are the vehicles and equipment supplier partners
Brand New Cars
CFAO Mobility
Motor Care (U) Ltd
The Motor Centre EA
Victoria Motors (U) Ltd
Brand New Trucks/Buses
Double Q Co. Ltd
Mac East Africa (U) Ltd
TATA (u) Ltd
Skenya Motors (U) Ltd
Mobikey(U) Ltd
Brand New Tractors
Cooper Motors (U) ltd
Engineering Solutions
Victoria Equipment (U) Ltd
Brand New Generators
Africa Power& Equipment
Mantrac (U) Ltd
Car & General
Used Cars/ Vehicles
Babu Motors (U) Ltd
Success Motors (U) Ltd
Hayat International
Rizwan Motors
World Navy Company Ltd
Zaara Motors
What is expected of the customer once takes on the financed asset?
The customer uses the asset and keeps it in good working condition.
The customer ensures that the asset is comprehensively insured at all times
What happens if the customer can not afford to pay for comprehensive insurance? The bank can grant the customer an Insurance Premium Finance (IPF) facility to cater for the upfront Insurance premium payment. This facility revolves for the duration of the VAF Facility and is payable within a period of 10months at very attractive fixed interest rates.
Can one have more than one asset financed? Yes, one can have more than one asset financed provided they have adequate cashflows to maintain the repayments.
What repayment options are available? Repayments are structured to match the cash flow of your business for instance. monthly, quarterly, termly, semiannually, and annually.
Does one have to be a dfcu customer to qualify for Vehicle & Asset Financing? No! One does not have to be a customer to qualify for Asset Financing. However, you will be required to open up an account with dfcu on approval of the facility.
What security should one provide to secure a Vehicle & Asset Financing facility? The primary security for Asset Finance is the Asset that is financed for which we provide up to 100% depending on the source of income age and type of the asset.
Does the bank give the customer cash to purchase the asset? No, the Vehicle & Asset Financing facility proceeds are paid directly to the supplier’s account.
What happens when the financed asset develops a mechanical problem? From the start, the client is responsible for choosing the asset from the supplier so you have to be cautious of the quality. You will be responsible for maintaining the asset in good mechanical condition. We will carry out routine inspections to make sure the asset is maintained properly. The client is expected to meet the full cost of repair should there be a mechanical breakdown.
When does the customer start making the repayments for overseas purchases? The customer starts making repayments after receiving the financed asset from the supplier. However, over the period when the asset is delivered, the customer will be charged pre-delivery Interest which may be paid on receipt of the asset or capitalized as part of the principal facility amount.
