Mr. Assad approached a financial institute for a vehicle loan after he decided to purchase a new BMW priced at RO.18, 000/-. Accordingly the financial institute will require certain documents before approving the loan for him, the document required are as follows:
• Application form to be filled with full customer details
• Product quotation from the dealer
• Salary certificate
• Bank statement / Latest credit card statement/ Existing loan repayment track record with any bank/ finance company
• NID/ Resident Card/ Passport copies
• Post Dated Cheque
However even after receiving all the required document the below internal screening are subject to the approval
• Retail credit norms
• Positive BCSB
• Negative CBO Hotlist
• Positive repayment track record with NFC (if past customer)
Moreover even after the checklist is done and after Mr. Assad signs the agreement accepting the terms & conditions of such transactions he cannot become the owner of the car as shown in the below article.
‘Where the vendor retains ownership of a movable item sold until the installments are paid in full, the purchaser shall acquire such ownership upon payment of the final installment’ . (Royal Decree 55/90, 1999, Article 129).
Accordingly Assad can become the owner of the car only after paying the final installment; however he can also be the owner of the car if he settled his account –in advance- with the finance company; however Mr. Assad might have another option that is if the vendor accepts. Mr. Assad can transfer his leasing account to another purchaser who is willing to take over the car through the same financial institute.
Therefore and as per the below article Mr. Assad Can cannot sell the car unless he obtains a writing approval from the finance company; further Assad should comply with the terms & conditions of such transactions in case he is able to avail the desired approval.
‘The purchaser may not dispose of the item sold before having paid the...