Product specification

Condition

Eligibility

Any regular income earner.

Minimum period of eligibility

Must have been in employment for not less than 6 months or must have been out of probation.

Purpose

Loans for purchasing vehicles for personal use.

Payment for vehicle to be bought is made directly by ESLCL to seller on behalf of loan applicant after approval and vehicle is transferred directly into the name of ESCLC for the loan period.

Mode of calculation

Instalments will be calculated using the flat method tailor made to suit regular cash flow pattern.

Instalment/Disposable income

Ratio should not exceed 40%

Debt/Equity

Ratio should not exceed 65%. Only applicable to business owners.

Security

Post dated cheques reflecting instalment amounts for salary holders without salary account with ESL.

For business owners, the total collateral value should not be less than 100% of approved loan for amounts not exceeding GHC 5,000. 120% for loans exceeding GHC 5,000.

Guarantor requirement

A guarantor is required for all loans.

GHC (100-1,000) - Guarantor must be in employment.

GHC (1,001-5,000) - Guarantor must earn not less than 50% of loan instalment.

GHC (5,001-above) - Guarantor must earn not less than 100% of instalment.

NB: Additional guarantor may be required in cases of insufficient guarantor income.

Cost

Interest rates range between 24% - 32.4% per annum.

Disbursement fees range range between 2% - 2.5%.

Maturity

Loan maturity should not exceed 24 months.

Mode of repayment

Loan repayment is made via a current account owned by client with ESL.

Otherwise through outward clearing.

Loan modification

Loans can be terminated before maturity, which will cost only the interest value for the month of termination.

Loans can be restructured, rescheduled and/or refinanced before maturity.

Limit

Accessible loan amounts range between GHC 100 - 15,000.

The vehicle must not be more than 10 years after manufacturing at time of purchase.