Corporates and Small and Medium Enterprises (SMEs) will now access car loans on Isuzu vehicles at a low interest rate of 13 percent payable for up to a period of six years beginning 1st of July 2017.
The General Motors East Africa (GMEA) and NIC Bank of Kenya on Wednesday this week announced an asset financing partnership that would see individual customers access the loans.
The partnership, which was announced at the GMEA offices, would also enable Isuzu customers to receive a 60-day grace period on payments and a one-year insurance cover through Fidelity Insurance.
Speaking during the signing ceremony, GMEA Managing Director, Rita Kavashe noted that the partnership would make it easier for any customer interested in purchasing Isuzu vehicles for their business or personal use.
There is no doubt that challenges exist when it comes to accessing finance to acquire assets. This has hindered many businesses in delivering quality services and potential growth. As such, this partnership seeks to make it easier for individuals and business organizations to purchase vehicles for their business and individual needs, added Kavashe.
She further said that the loan interest rate, which has been reduced by one percent (1%) compared to other banks, would see customers who purchase heavy commercial trucks make substantial savings on their repayments.
The 60-day grace period will make it easier for all to comfortably pay for their newly acquired vehicles Kavashe reiterated.
The NIC Bank Group Managing Director, John Gachora echoed Kavashe’s sentiments, saying the 60-day grace period would give customers the much-needed window to design a proper payment plan, deal with cash flow problems and ease cash burdens.
In the past, most business and individuals obtained commercial loans to purchase the equipment they need. This led to constrained cash flows for organizations and individuals, which could have been put to good use, added Gachora.
He also noted that over 90 percent of banks in the country required that customers taking up asset financing begin immediate payments of the said asset.
The new asset financing package was set to commence early July, 2017 as a way of enabling customers have peace of mind and acquire Isuzu vehicles affordably during this challenging economic times in the country.
Source: Kenya News Agency