“Drive for life” promotion promises affordable loans for potential vehicle owners

May 05, 2014 News

Demerara Bank on Saturday rolled out its country wide “Drive for Life” promotion in partnership with several auto dealerships and insurance companies geared towards providing affordable vehicular loans for persons to achieve their dreams of having their own vehicle.
The ‘Drive for Life’ promotion, which will be available at all of the Demerara Bank locations across the country, was opened at the Banks Diamond Branch on the East Bank of Demerara by the Bank Chairman Dr. Yesu Persaud, Chief Executive Officer (CEO) Pravinchandra Dave and other notable employees.

CEO of Demerara Bank Ltd Pravinchandra Dave and Chairman Dr. Yesu Persaud.

Diamond Branch Manager Imran Badruddin explained that the “Drive for Life” promotion speaks to the Bank’s commitment to the development of Guyanese.
According to Badruddin the Bank has “recognized the continuous demand for motor vehicles in our developing country which has seen approximately 10,000 vehicles being registered on an annual basis, as motor vehicles are usually between the top two assets desired by most individuals and families.”
“We also remain conscious of our competitive environment and so have formed useful partnerships with auto dealers and insurance companies that are present here today to give additional benefits to our potential customers.”
The Bank, he said, boasted of one of, if not the most affordable car loan schemes among commercial banks. “We have now made it better with this promotion which he said is scheduled to run from the 3rd of May 2014 to June 2014.”
He explained that the Bank’s interest rate for the promotion has been reduced to 13.5 percent per annum which importantly is calculated on a monthly reducing balance method. Meaning that as you pay on the loan the monthly balance will decrease.
Additionally, equity or contribution required is 20 percent the cost of the vehicle for first time borrowers and 15 percent for repeat borrowers who have shown a satisfactory track record said the Diamond Branch Manager.

In addition to the cars the accessories were also on display

So if one were to buy a Toyota Allion for $2.5 Million from any one of the listed auto dealers, the equity/contribution (20 percent) would be $500 000 and the monthly installment would equate to $54, 400.
He said that the lending ceiling has been increased from $3 Million to $4 Million for the purchase of motor vehicles for private use and a maximum term of four years on the repayment on the loan.
According to Badruddin, they will also be accepting loan applications for hire purchase vehicles. The terms and conditions for these loans will be different in that the maximum ceiling will be $2.5 Million, the repayment terms will be 3 years and the rate of interest will be 15 percent with equity (contribution) being 40 percent.

He said that the offers provide a very affordable package for average Guyanese to afford the “comfort and convenience of owning their own motor vehicle.”

Additionally “we have added more benefits for this promotion in which each successful applicant will be given a token compliments of Demerara Bank Limited, more importantly however at the end of the promotion on successful applicant will win the grand prize of $500, 000 which will go towards the repayment of the loan” said Badruddin.

Auto dealers display vehicles at the Diamond Branch with potential customers inspecting

Speaking to how persons can access the loans, Badruddin explained that potential customers have to provide “the quotation of agreement of sale and purchase on the vehicle, a job letter or income and expenditure statement if you are self employed, a photograph of the vehicle, a valid driver’s license, a copy of your passport or National Identification card and a proof of address and tin certificate.”

Demerara Banks Executive member within the marketing department, Devon D’Oliveira, highlighted the auto dealers and Insurance companies that have partnered in the promotion.

He outlined that owing one’s own home and vehicle can be considered an investment in the future and needs to be protected in the event of an unfortunate occurrence. Some of those risks he outlined can be negated by insuring one’s assets. He outlined that insurance for vehicles is mandatory by law and outlined a list of insurance companies who were present at the ceremony and will be on board.

Those insurance companies are Assuryia General insurance, Demerara Mutual Fire and Life insurance, Diamond Fire and General Insurance, GTM insurance, Hand in Hand insurance and Nalico Nafico insurance.

He also furnished a list of the auto dealerships that have partnered with Demerara Bank for the drive for life promotion. Those being  the A&R imports,  Akbar auto sales, Automart, BM Soat auto sales, Buddy’s Auto, Car Care Enterprise, Real Choice Auto, Robbies Auto Sales, Transpacific Spears and auto sales, Voltex Autosales and Zoom Auto sales.

Giving the feature address for the promotion was CEO of Demerara Bank Pravinchandra Dave, who spoke of the exponential growth of the Bank institution in addition to outlining the impetus behind the car loan promotion.
He outlined three reasons why their Demerara Bank should be used to access loans for vehicles as opposed to the other established Banks.
The first reason he posited was the short time (five to six days) the Bank takes to process the application of loans. “If you keep somebody hanging and asking to come again and again and asking for different types of documentation that will not cut it.”
Dave also said the rate of return on the installments when compared with other institutions does not allow for reduction on the monthly balance of the loans since the interest is calculated on a yearly basis.
“That approach does not give you the benefit of reducing the balance in the account. In our case what we do is that we take care of every installment that is being paid.”  When it is worked out Demerara Bank charges two percent lower interest than other banks the CEO posited.
According to the CEO, if a customer cannot repay a loan within three years, the Bank could cater for extensions for one or two more years. He also spoke to the partnerships with auto dealers to make the car ownership affordable and easy.
Chairman of Demerara Bank Dr. Yesu Persaud officiated over the proceedings and spoke to the humble beginnings from which the Bank started and its growth over the years leading up to where it is now. He attributed the success of the line of Banks locally to the stakeholders, depositors and the hard working and committed staff in addition to stellar leadership by the current CEO.