Co-operative Bank is set to start financing individuals and small businessmen looking to buy large scale Isuzu vehicles.
This is after the bank inked a financing deal with General Motors East Africa, which was recently acquired by Isuzu.
The small businessmen looking to acquire the vehicles will get up to 95 per cent financing at a rate of 14 per cent only.
Additionally, these borrowers will also get loans of up to Sh. 300,000 to fund their businesses.
“The working capital loan will be repayable in 12 months. The asset finance repayment period is up to five years,” said Rita Kavashe, the managing director at General Motors.
The deal was signed by Ms. Kavashe and Co-op Bank’s Director for Retail and Business Banking Maurice Matumo.
“We admit that there is much more that is involved in running a business apart from owning the vehicle. Our customers will, therefore concentrate more on doing other things involved in running their businesses,” said Mr. Matumo.
The bank in partnership with Isuzu further revealed that it will be targeting one million small and medium enterprises in Kenya.
“73% of these SMEs were made up of motor vehicles and motorcycles repair businesses. To help reduce this, we have taken it upon ourselves to innovate ways that will make it easier for SMEs to access our products when they need it,” they said in a statement.
