Leading vehicle manufacturer General Motors East Africa (GMEA) has partnered with NIC Bank of Kenya in an asset financing deal to allow corporates, enterprises and individual customers get financing to acquire Isuzu vehicles at a rate of 13 percent, a one percentage point reduction in the usual rate.
It includes a one-year general cartage insurance and excess protection from Fidelity Insurance for all Isuzu N-Series, Trucks, FRR trucks and both double and single cab D-Max pickups.
Noting the existing challenges in accessing finance to acquire assets which hinder service delivery and growth of businesses, GMEA Managing Director Rita Kavashe said the unique partnership will simplify vehicle purchase for businesses as well as individuals.
“Over 90 percent of banks in Kenya require that customers taking up asset financing begin immediate payments of the said asset. However, through this partnership, our customers will be able to enjoy a window to comfortably source payment for their vehicle,” Kavashe said.
The partnership will see Isuzu customers receive a 60-day grace period on payments giving customers a window to come up with the most comfortable payment plan.
According to NIC Bank Group Managing Director John Gachora, most businesses and individuals obtained secured or commercial loans to purchase the equipment they needed leading to constrained cash flows, which could have been put to good use.
He added, “Our partnership is aimed at benefiting customers and realizing their goals, as businesses or individuals.”
The new asset financing package with a tenor of up to six years will commence on 1 July 2017.