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Nedbank Zim relaunches car loans for individuals & companies

Nedbank Zimbabwe Vehicle Asset Financing Car Loan Loans

The second-hand car market has been effectively neutered by SI 89 of 2021 which banned the importation of second-hand vehicles over 10-years old. This is meant that the ordinary Zimbabwean who dreamt of getting an affordable ex-Jap would now have to contend with the scalpers at the car dealerships. One of the things I banged on about when the government announced the ban was the lack of car loans or specific vehicle financing.

There are a number of products on the market, including short term loans but nothing from what I could see browsing the interwebs was specifically for cars (also if you know of any hit me up in the comments). However, and in a good turn of events, Nedbank Zimbabwe relaunched its Vehicle Asset Financing facility.

The company yesterday, put out a tweet outlining the terms and conditions for vehicle loan financing or car loans.

Nedbank Zimbabwe car loan terms

I guess the obvious thing is that you have to be a Nedbank account holder to be eligible for its vehicle financing facility. You will, as I am sure you’ve already guessed, have to have a salary that comes into your account as well as:

  • Completing a Nedbank Vehicle Finance application form.
  • Assessment of stability of employer is carried by the Bank.
  • Satisfactory account conduct by applicant.
  • Copy of current payslips and financial statement in case of a Corporate applicant.
  • National identity or incorporation documents in case of a Corporate.
  • Letter from employer (Human Resources Manager/Head) supporting the request and confirming that one is permanently employed.
  • Proof of residence.
  • Copy of Driver’s license.
  • Credit checks – KYC, FCB, CRB and World checks.
  • Pro-forma invoice from an Authorised Dealer.

The vehicle can be new or pre-owned however, for pre-owned vehicles Nedbank says only Nissan, Toyota, Ford, Chevrolet, Isuzu, Mazda Landrover and Mercedes Benz models are eligible for a car loan. In addition, Nedbank also says in its brochure that it does not finance “grey” imports.

Below are the vehicle loan terms for individuals and corporates:

Personal car loans terms

Upfront Deposit requirement20%Minimum 20% for <5years
Tenure maximum36 – 60 months36 months
Once-Off Admin fees1%1%
Arrangement fees (once-off)2%2%
Credit Insurance3%3%

Corporate car loan terms

Maximum AmountPegged in line with turnoverPegged in line with turnover
Repayment periodCurrently up to 18 monthsCurrently up to 18 months
InterestMLR 40% p.a + marginMLR 40% p.a + margin
Arrangement FeeUp to 5% Flat upfront.Up to 5% Flat upfront.
Administration FeeUp to 5%Up to 5%
Authorised Dealer’s & AA reportsNot requiredRequired
CVR, Interpol & Vehicle Theft Squad clearanceNot requiredRequired
Full Comprehensive InsuranceRequiredRequired

You can download Nedbank Zimbabwe’s vehicle financing brochure with the link below:

Quick NetOne, Econet, And Telecel Airtime Recharge

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