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The move has angered some Zimbabweans who express concern that the government cannot afford to extend the loans which total more than US$6.3 million.
House Speaker Lovemore Moyo of the Movement for Democratic Change formation headed by Prime Minister Morgan Tsvangirai has said details of the scheme are being worked out.
But MP Thabitha Khumalo, deputy spokesperson for the Tsvangirai MDC formation, said most members are already shopping for vehicles under their terms of service.
One critic, political analyst Themba Dlodlo, told reporter Gibbs Dube that lawmakers should use the cars made available to them by the Reserve Bank of Zimbabwe as the new scheme will drain state resources that should be directed towards critical capital projects.
* VoA