The Safest Way to Get a Loan Against a Car in Botswana

loan against car botswana

Using a fully paid up vehicle to secure a loan is quick and easy. It is also one of the safest ways of raising emergency funds.

In Botswana, there are basically two options when it comes to borrowing money against a car – pawn and drive schemes, and standard asset-based loans.

Cash for car loans in Botswana can be the ideal solution for folks who need funds in a hurry. But before signing on the dotted line, it’s important to delve into the available loan options in more detail.

Asset-based loans for Batswana

An asset-based loan is safe, regulated and transparent. The lender offers a sum of money based on the appraised value of the car.

An agreement is drawn up, detailing the terms of the loan; the rate of interest charged on the borrowed money, and the initiation fees associated with the transaction.

The loan agreement is signed by both parties, and the money is electronically transferred into your bank account.

The car is safely stored for the duration of the loan term. Once the capital amount, plus interest, is paid back in full, the car is returned to you.

Pawn and Drive loans

Pawn and Drive schemes may sound like a great idea. You’ll have money in the bank, and you’ll have full use of your car. However, there are some serious pitfalls to consider.

What many people don’t understand is this: the ownership of the car has to be signed over to the lender. Sure, you’ll have the luxury of driving the car, but you’ll be expected to pay the loan provider to rent back your own car, so you can drive it.

Wait… there’s worse to come. Once you’ve paid back what you owe, you still have to buy your car back from the loan company.

If you don’t have the available funds, tough. The lender is entitled to seize the car to cover the loss. Alternatively, they’ll offer to roll the loan over, but for an excessively large fee.

At their best, Pawn and Drive loans are punitively expensive ways of borrowing money. At their worst, they’re scams.

Key advantages of asset-based loans in Botswana

Advantages of borrowing money from a reputable asset-based loan provider like lamna Botswana:

  1. You retain ownership of your car at all times.
    The vehicle is simply held as collateral for the loan. No-one is allowed to drive your car while it is in storage, and you do not have to hand the original vehicle registration papers over to the lender.
  2. Interest rates are fair and market-related.
    There are no hidden fees, and early settlement penalties are NOT imposed when you pay back the loan before the agreed term.
  3. The process is fast, safe and transparent.
    At lamna Botswana, we don’t share clients’ information with credit bureaux or any other third parties. Once necessary paperwork is completed, you can expect funds in your account within 24 hours.

At lamna Botswana, we offer the safest way to get a loan against a car or other vehicle in Botswana. We also offer fast, discreet loans against the value of a wide range of other assets, from luxury watches and jewellery. For more information about using an asset to secure a short-term loan, contact us on 71 388 088 or simply complete and submit our online application form.

Complete our Online Application Form