Standard Reporter
(L-R) Director Retail and Business at
Co-operative Bank Arthur Muchangi with bank customer Silas Odero of
Nyakinda Construction, Managing Director Isuzu (East Africa) Rita
Kavashe and General Manager CIC Insurance Joseph Kamiri during the
launch of the Daily Loan Repayment Asset Finance program to enable bank
borrowers to do daily repayment of loans taken to
finance the purchase
of Isuzu vehicles.
Leading local vehicle assembler Isuzu East Africa (Isuzu EA) and
Co-operative Bank of Kenya Wednesday announced a daily repayment asset
finance partnership that seeks to address financial challenges faced by
customers who reconcile their profits and losses daily.
The partnership, which is the first ever in Kenya, offers customers an
option to repay their loans on a daily basis and is expected to take
away the anxiety of an expected huge amount payment required at the end
of the month, making it of the easiest and most affordable way to own
Isuzu pickups and trucks.
Speaking on this development, Isuzu EA Managing Director Rita Kavashe
noted that the program provides an opportunity for daily reconciliation
customers to invest and grow their businesses.
“Our decision to partner with Coop Bank was informed by their business
DNA, dealing with our customer base, the SMEs, their deep understanding
of customer cash generation; and experience with SME customers’ business
cycles. Today, we are happy to announce to a partnership that will see
SMEs enjoy a raft of benefits,” said Rita. “We strongly believe that
this partnership will enable SMEs grow their business without affecting
their cash flow,” added Rita.
SEE ALSO :Co-op outfit seals Sh890 million deal
Co-operative
Bank Director for Retail and Business Banking, Arthur Muchangi
emphasized the need for SMEs to take this opportunity to re-tool and
renew their motor vehicle fleet at very affordable terms.
“Our message to customers is simple; if you desire to purchase an Isuzu
bus, an Isuzu truck or a pick-up such as the famous D-Max, this is the
best time. Through this partnership between Isuzu and Co-op Bank,
customers will get up to 95 per cent financing to purchase the vehicle
of their choice, and in addition be given a whole two months to use the
vehicle before they begin repaying the loan. This will give customers
space to generate cash to service the loan, which is to be repaid over
an extended period of five years every day. For those Isuzu customers
who also wish to boost the working capital of their business, we are
providing an additional loan of Sh300,000 to be repaid in 12 months,”
said Mr. Muchangi.
Mr. Muchangi added that the offer comes with a most reasonably-priced
comprehensive insurance package priced at 4.75 per cent of vehicle value
(that includes Political Violence and Terrorism). In addition,
Insurance Premium Finance is available to allow customers pay insurance
premiums in easy instalments.
Isuzu EA Managing Director Rita Kavashe noted that the partnership with
Co-op Bank was crucial, adding that Isuzu EA aims to make it easier for
SMEs to access financing for their Isuzu products that SMEs strongly
rely on to build, grow and sustain their businesses.
“Last year, we ran a series of ground activations to understand customer
needs and expectations. And we took note of a group of customers that
have a different business operation system that runs on a daily
reconciliation system. We therefore took it upon ourselves to develop an
innovative partnership that will benefit them and enable them to grow
their business exponentially. For example, with 95 per cent financing
and 60 months’ repayment period, the daily repayment for an Isuzu D-Max
pick-up is only Ksh 2,577,” explained Rita.
SEE ALSO :Isuzu, Cooperative Bank ink deal on asset finance
This
new and innovative partnership is targeted to help farm produce traders
at Marikiti, meat traders from Burma market, hardware store owners,
mitumba traders, upholstery traders from Kamukunji and Gikomba market
areas.
In the partnership, Isuzu customers are set to enjoy Ksh 300,000 working
capital to empower their business payable in 12 months, a 60-day
repayment holiday that will allow SMEs to generate monthly instalments,
the lowest market negotiation fee of one per cent and the longest
re-payment period of 60 months in the market.
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