BOV loan facility for bus owners

Bank of Valletta is launching a new finance package loan facility for bus owners who are planning to change their old bus for a new and modern vehicle.

The new package provides the combination of a letter of credit and a loan and is linked to the subsidy, of a maximum sum of Lm32,000, which the government was offering to bus owners wishing to buy a new bus.

The package under this scheme is for a maximum amount of Lm45,000 for each bus purchased up to a maximum of two buses per applicant and based on the amount of subsidy granted by the Malta Transport Authority.

Requests for financing for the third bus or more will be considered on their own merit outside the scheme package.

Bank of Valletta will provide the facility of a letter of credit combined with a loan of up to Lm45,000, of which a maximum of Lm13,000 may be utilised as part payment/deposit on the new bus.

The subsidy granted by the Malta Transport Authority (maximum Lm32,000) will be paid directly to the bank within one month from the issue of the certificate of inspection of the bus in Malta by the Malta Transport Authority. Capital and interest on the loan portion of this package, for a maximum of Lm13,000, will be repaid in monthly instalments over a maximum period of 10 years.

Tonio Depasquale, chief officer credit management and retail business of BOV said the bank was responding to a very specific market need and was launching a financing product directed at a specific market segment.