Transport & Storage
If you're in wholesale and retail, then this loan is for you
What is Transport & Storage
Lending to this industry involves loans for commercial vehicles such as taxis, buses, etc., and building construction and facilities for commercial or merchandising storage.
The retail trade classification includes all business activities involved in the resale without transformation of new and used goods to the general public for personal or household consumption.
Why go with us?
Tonga Development Bank’s Transport & Storage loan has:
- A highly competitive interest rate
- Maximum term of up to 48 months
- Funds a wide range of transport and storage needs for your business
From
10.00% pa
interest rate
| Transport & Storage | |
|---|---|
| Rates | |
| CRR A | 10.00% pa |
| CRR B | 11.00% pa |
| CRR C | 12.00% pa |
| Features | |
| Security | All items purchased with loan funds. Land mortgage is preferable otherwise security coverage by the Bank should be at least 1.5x |
| Term | Maximum of 48 months for new vehicles or 30 months for used vehicles. |
| Repayment Percentage Salary Deduction | Salary deduction is preferable, though cash is considered. For SD, 50% salary allowed for repayment of loan, 60% considered |
| Fees | Can be charged to account |
| Disbursement | Direct to supplier |
| Quotation of costs | A written inspectionvaluation of vehicle to be obtained from reputable mechanics e.g. MOW, ASCO, TMF. |
| Borrowers Contribution | A cash contribution of at least 25% is required on all vehicle loans |
Eligibility Guideline – Applicants
The vehicles to be purchased should be used for commercial purposes. Purpose for which loan funds can be used:
- 1. purchase of new or reconditioned cards, pick-ups, lorries, buses and other
- 2. vehicles for commercial use (including taxi);
- 3. second-hand vehicles if they are in good condition.
Borrowers' Contribution
A cash contribution of at least 25% is required on every vehicle loan. It is subject to review by the Bank.
A written inspection/valuation for vehicles is to be obtained from a qualified mechanical workshop approved by the Insurance Companies, e.g. ASCO, MOW, Si’i Kae Ola in the case of used and recondition vehicles.
The asset pledged as security e.g. vehicle must be sighted
