Government officials must meet certain conditions set by the National Treasury before receiving a loan to acquire a car.
According to the National Treasury, the scheme to allow government officials and other civil servants to acquire car loans was established in September 2015.
The fund was made public through a legal notice 195 under the Public Finance Management Act (No. 18 of 2012).
"The objective of and purpose for which the Fund became established was to provide a car loan facility to State Officers and Civil Servants of the National Government to purchase a motor car," the Treasury indicated.
Conditions for Government Officials
To be eligible to receive the car loan, one must prove to be a serving civil servant in the government.
Besides proving their working contracts, the applicants must demonstrate the ability to repay the loan.
"The applicant (borrower) must undertake to have the car registered jointly in the name of State Officers and Civil Servants Motor Car Loan Scheme Fund under him/her," the scheme on Treasury's website indicates.
"The applicant (borrower) must ensure that the vehicle is covered by full comprehensive insurance throughout the period, failure to which the board will renew the insurance and debit the applicant's loan account," adds the statement.
Civil servants are also expected to meet the cost of valuation and legal fees before receiving the loan. On top of that, only civil servants with valid driving licenses are eligible for the loan.
Before they receive a loan, civil servants are also expected to pay the amount due under the purchase agreement in monthly installments. Under this category, the creditor deducts the agreed amount from their salaries.
According to the Treasury, the applicants must provide a certified copy of the sale agreement relating to the acquired car.
In addition, civil servants are also expected to present a valuation report from an approved valuer, and the vehicle's supplier must be known.
"The Motor Car Loan applications for State Officers and Civil Servants of the National Government will be processed on first come first served basis upon return of the duly completed application form," the Treasury stipulates.
Life insurance is also a requirement before applying for a car loan.
However, if one ceases to be a civil servant, they are expected to continue repaying the loan to completion.
