This is a marvelous product that really helps the consumer!
Basically, we loan money to a client and then take title to the vehicle, truck, earthmoving equipment, caravan, or motorbike. We then let the client use the vehicle for the period of the loan. Unfortunately, this product is only available in Botswana.
This type of Loan is extremely risky to us the Lender. The reason for this is we are giving our surety back to the person to who we gave the loan. Unlike Pawn or Asset Lending we are potentially exposed to the risk of the client selling the vehicle or hiding the vehicle and not paying us. It also could depreciate the vehicle tremendously if the client does not look after the vehicle and drives it roughly or doesn’t look after it and maintain it properly.