Buying a car on credit in the Seychelles islands
In Seychelles, a car is mostly financed with a rupee bank loan from SCB, Nouvobanq, Absa or MCB, and the vehicle, almost always imported under licence, stays pledged to the lender until the loan is fully repaid.
A vehicle fleet imported entirely through Port Victoria
No vehicles are assembled in Seychelles: every one arrives by ship at Port Victoria. Duties and taxes collected by the Seychelles Revenue Commission, added to freight costs, explain why a small city car costs far more in rupees than in Europe.
Import licence from the Ministry of Transport
Every vehicle import requires a licence approved by the Ministry of Transport, with the trade division of the Ministry of Finance acting as the single window. Used vehicles are restricted by law for environmental reasons, which limits the supply of cheaper cars.
Banks that finance private buyers
Seychelles Commercial Bank, Nouvobanq, Absa Bank Seychelles and MCB Seychelles offer vehicle loans to employees whose salary is paid into their accounts. The Seychelles Credit Union also finances its members, often after requiring them to build up savings first.
Buying from a dealer in Victoria
Most buyers go through an approved dealer on Mahé, who provides the pro forma invoice the bank needs. The lender then pays the financed amount directly to the seller, while the buyer covers the deposit and any additional costs.
The lender's interest on Seychelles registration
The bank keeps a claim on the car until the last instalment, and its interest appears on the registration documents. Selling the vehicle before the loan is cleared requires the lender's written consent and the removal of that entry.
Loan term and deposit required
For a new vehicle, the term is usually negotiated over a few years, and it is shorter for a used model. A deposit in rupees is normally requested and lowers the monthly payment, especially for irregular incomes from the tourism sector.
Hire purchase and credit sales
Some sellers offer hire purchase under the Hire Purchase and Credit Sales Act 2013, where the seller remains the owner until the final payment. For an option without buying, our guide to car leasing in Seychelles covers the emerging long-term rental offer.
Motor insurance demanded by the lender
Third-party cover is compulsory, but the bank almost always insists on comprehensive cover for the life of the loan. Premiums in rupees vary with the car's value, the driver's age and the island of use, with Mahé carrying most of the traffic.
Second-hand cars from private owners on Mahé
Buying from a neighbour in Beau Vallon or Anse Boileau is hard to finance with a standard car loan. Many buyers therefore turn to a personal loan in Seychelles, which generally carries a higher interest rate than vehicle finance.
Credit history and the SCIS file
Before financing a car, the bank checks the Seychelles Credit Information System. Arrears on a credit card, a Credit Union loan or even HFC housing finance appear there and may lead the bank to cut the amount offered.
South Africa's car market by comparison
The highly competitive South African car market offers a wide range of financing and dealers. Our guide to a car loan in South Africa shows how far it differs from the small Seychelles scale, and the gap remains considerable.
Left-hand traffic and choosing a model
Seychelles drives on the left, and the import licence rules notably restrict left-hand-drive vehicles, which are poorly suited to local roads. Choosing a model that copes with the steep roads of Mahé also makes the car easier to resell.
From a Mahé dealer to getting the keys
- Choose the car at an approved dealer and get a pro forma invoice listing price, taxes and options.
- Ask your salary bank and one other for a quote, comparing rate, term and fees in rupees.
- Submit your file with payslips, statements and invoice, then authorise a check of the SCIS.
- Take out comprehensive insurance with a local insurer and send the certificate to the lender.
- Sign the contract, pay the deposit to the dealer and let the bank settle the balance directly.
- Register the car with the lender's interest noted, then have that entry removed after the final repayment.
Budgeting for car finance in rupees
| Item | Typical level | What changes it |
|---|---|---|
| Loan rate | Varies by bank | CBS policy rate, profile, term |
| Deposit | Often required | Vehicle age and income stability |
| Arrangement fee | Per the institution's tariff | Amount and type of customer |
| Comprehensive insurance | Variable annual premium | Car value, driver's age |
| Import duties and taxes | Included in dealer price | Engine size, type and model value |
Paperwork for a Seychelles car loan
- Seychelles national ID card
- Driving licence valid in Seychelles
- Last three payslips and proof of employment
- Dealer's pro forma invoice
- Comprehensive insurance certificate
- Recent bank statements
Missteps by buyers financing a car
- Ordering a used vehicle abroad without checking it meets import restrictions, then being refused the licence after paying the deposit.
- Selling the car without the bank's consent while its interest is still on the registration, which blocks transfer to the new owner.
- Letting comprehensive insurance lapse during the loan: the lender may then declare the finance agreement in default.
- Answering a quick car loan ad on Facebook that demands fees by money transfer, with no licence from the Central Bank of Seychelles.
Questions about car finance in Seychelles
Can you finance a used car in Seychelles?
Yes, but banks grant shorter terms and often ask for a bigger deposit. The local used-car supply is limited by import restrictions, which keeps prices high in rupees even for older models.
Who pays the car dealer?
Usually the bank pays the financed amount straight to the dealer, based on the pro forma invoice, while the buyer pays the deposit personally. This assures the lender that the money really goes towards buying the vehicle.
Can a foreign resident get a car loan in Seychelles?
It is possible for an expatriate with a valid work permit covering at least the loan term and a locally paid salary. Banks then often require a larger deposit and may shorten the repayment period.
What happens if a Seychelles car buyer stops paying?
The lender can demand early repayment, repossess the pledged vehicle and report the default to the Seychelles Credit Information System, which will weigh on any later loan application with banks and the Credit Union.