Car Loan Terms & Conditions

Eligibility
All serving clergy, deaconesses and licensed lay workers paid through the Church Commissioners' Clergy Payroll. Loans are only made for the acquisition of a vehicle.

Term
Normally up to 4 years. Rate of Interest - Interest will be charged for the duration of the loan at the Commissioners' National Car Loan Scheme rate in force when the loan commences. It will be calculated on the outstanding balance at the end of each month.

Repayments
By equal monthly deduction from stipend or subsequent pension. In the event of a full month's repayment not being made, the Commissioners may add further interest due to the capital sum outstanding.

Redemption in full
Voluntarily at any time (figure available on request from the Commissioners' Office). Full redemption will be required on leaving the Commissioners' payroll (i.e. resignation or death but not retirement unless there is insufficient church pension to cover the repayments). Full redemption will also be required on the sale, theft, writing off through accident or other disposal of the vehicle or should the vehicle become permanently unserviceable.

Lump Sum
Voluntarily at any time. If a loan is repaid in part, your monthly repayments will be reduced from the following month.  The term of the loan, which you requested when you took out the loan, is fixed and cannot be reduced.

Replacement Loans
A loan will not be granted within two years of the grant of a previous loan. If an applicant has an outstanding loan from the Commissioners, this must be repaid as part of the new loan granted (see 3a on application form). The outstanding balance will be deducted from the sum sent to you. Please note that the scheme aims to provide finance towards one vehicle and a new loan will be granted only when the vehicle is changed. If the applicant wishes to retain the previous vehicle, the total value of the new loan granted by the Commissioners, including the capital outstanding on the previous loan, will not exceed the value of the new vehicle. Repayments on the new loan will commence in the following month. Interest will be charged on replacement loans at the rate in force from the first day of that month.

Maximum Loan
The total loan must not exceed the lesser of either the value of the new vehicle or half the National Minimum Stipend.

LPG conversions
Providing that the total loan does not exceed the maximum loan, you may apply part of the loan to enable the vehicle you purchase to be converted to run on Liquid Petroleum Gas (LPG). You will undertake to provide a receipted invoice on completion of the LPG conversion.

General
The vehicle to which the loan applies will be the property of the borrower. A Vehicle History Inspection Report is required for all secondhand vehicles. We also recommend that an independent engineer's report is sought in these cases. Comprehensive insurance with a recognised company must be held throughout the term of the loan. The Commissioners reserve the right to refuse any particular application. In such cases, the Commissioners will give the applicant the reason(s) for refusal.