The Co-operative Bank of Kenya has eased terms of borrowing for Kenyans seeking to be financed to acquire vehicles from Isuzu East Africa.
In the new terms announced by the bank, Co-op Bank has extended the repayment period by a full year. It has also now allowed customers to be borrowing up to Sh. 2 million working capital in what is set to be a boost for businesses.
In addition to this, Kenyans buying commercial vehicles will enjoy a 60-day grace period.
At the same time, schools acquiring school buses will have a one-term moratorium when they purchase the buses, with repayment extended to 72 months on a termly basis, which adds up to 18 terms at zero processing fee.
“We have observed that a good number of our business customers are giving priority to financing their stocks and operations. We have therefore made available an additional digital credit of up to Sh. 1 million for micro small and medium-sized enterprises customers and Sh. 2 million to schools over and above the 95 per cent and 100 per cent asset financing,” said Co-op Bank chief executive officer Dr. Gideon Muriuki.
At the same time, under the new improved terms, CIC Insurance will provide cover at an average of 4 per cent of vehicle value for commercial vehicles and 3.5 per cent for school buses.
“Isuzu East Africa has partnered with Co-operative Bank to provide solutions that will address the needs of our customers during these challenging economic times. We are thrilled to launch a Financing scheme that provides a ninety-five per cent financing option for Isuzu N-series, Isuzu F-series and Isuzu pick-ups TFS and TFR Series,” said Isuzu East Africa managing director Rita Kavashe.
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“The financing options cover all Isuzu vehicle models. About 95 per cent of the products we sell, including commercial trucks and buses, require financing. So if you don’t have strong financing institutions, it becomes very difficult to scale. This deal gives us room to continue to grow.”