Q & A on Vehicle and Asset Finance for Housing Finance Bank

1. We want to recognize the bank’s significant role in easing the ownership of vehicles by individuals or businesses in Uganda. Please provide a brief overview of Housing Finance Bank’s Vehicle and Asset Finance Solutions.

Housing Finance Bank’s Vehicle and Asset Finance (VAF) solutions are tailored products designed to help individuals and companies acquire vehicles and other assets. These solutions include vehicle loans for personal vehicles, commercial vehicle financing for businesses, as well as equipment financing and leasing options for various types of machinery and technology. Housing Finance Bank’s Vehicle and Asset Finance solutions offer competitive interest rates, flexible repayment terms, and a streamlined application process. They are designed to meet the diverse needs of both individuals and businesses, providing essential support for growth and operational efficiency.

2. What financing solutions does Housing Finance Bank offer to prospective commercial truck owners?

Housing Finance Bank provides a comprehensive suite of Vehicle and Asset Finance solutions tailored to the needs of commercial truck owners. These options include:

Finance Leases: Under this arrangement, the bank (lessor) acquires & grants a right of use of commercial vehicle(s) to our client (the lessee) for an agreed period in exchange for regular payments (lease rentals). The bank retains ownership of the vehicle throughout the lease term, upon completion of which the bank transfers ownership to the lessee.

Asset Loans: Wherein, a prospective commercial truck owner is offered bank financing for the acquisition of commercial truck(s) to build & expand their fleets. The financed commercial truck(s) would be registered in the name of the borrower and the bank registers chattel mortgage (caveat) against the vehicle(s), release of which would be upon full loan settlement.

Insurance Premium Finance (IPF): A convenient solution to facilitate our customers to finance annual Insurance Premium for the commercial trucks, rather than expend the lump sum upfront.

3. What does a prospective commercial truck owner need to access Vehicle and Asset Finance solutions through Housing Finance Bank?

To qualify for our Vehicle and Asset Financing solutions, a prospective customer typically needs to meet the following criteria: 

1. Valid Identification (national ID, passport, or driver’s license). 
2. For non-individual applicants, their registration particulars.
3. An account with Housing Finance Bank.
4. Proof of incomes to demonstrate repayment ability.
5. A good credit history.
6. A down payment of between 10% and 30% depending on the type of the commercial truck.

3. How long does it typically take Housing Finance Bank to process this product for a prospective customer?

Housing Finance Bank strives to provide a swift turnaround time for all loan applications. On average, we process applications within 14 working days or less, for new and existing customers.

4. What are the benefits of the Vehicle and Asset finance solutions to commercial truck owners?

Our Vehicle and Asset Finance solutions offer several benefits to transportation businesses, including:

• Access to Capital: The bank avails the necessary capital for transporters to purchase new commercial vehicle(s) without the need for substantial cash outlay from their businesses to invest in capital assets.
• Improved Cash Flow: Spreads the cost of asset acquisition over time, allowing businesses to maintain better cash flow.
• Tax Benefits: Offers tax advantages for eligible clients through VAT deductions on lease rentals.
• Enhanced Operational Efficiency: Provides access to modern vehicles with lower maintenance costs and better reliability.
• Scalability: Allows businesses to easily upgrade their fleets and expand their operations.

5. How is Housing Finance Bank simplifying the acquisition of zero-mileage trucks?

We have established partnerships with reputable vendors of brand-new trucks to streamline the acquisition process. Additionally, we offer competitive financing terms for zero-mileage trucks, including lower down payments, and longer repayment periods of up to 5 years, to mention but a few.

This ensures a smoother and more efficient experience for our customers.