Toyota Kenya, NIC Bank ink vehicle loans deal

From left-NIC Group Managing Director John Gachora, NIC Executive Director Allan Dodd and Toyota Kenya Managing director Arvinder Singh Reel during the signing of an MoU announcing a one-of-a-kind financing scheme for Toyota Kenya customers on March 11, 2019 at NIC officers in Nairobi. PHOTO | SALATON NJAU | NMG 

By IVY NYAYIEKA
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Summary

• NIC Bank will provide loans to customers at 13 percent interest with the repayment period capped at 60 months.
• The firms are also dangling a repayment holiday period of 90 days before installments have to be paid in a bid to entice car buyers.
• Toyota Kenya said customers who get their cars through the programme will also get comprehensive insurance for a year.

Toyota Kenya has partnered with NIC Bank to provide up to 95 percent financing for buyers seeking to purchase vehicles from the dealer in a bid to grow sales.

Under the deal, NIC Bank will provide loans to customers at 13 percent interest with the repayment period capped at 60 months.

US dollar denominated loans will incur an interest of 11 percent in the deal that targets small and medium-sized (SME) businesses and personal car owners.

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“Since interest capping came in and credit became tight, SMEs have suffered and we have noticed it because we have not been able to sell as many vehicles…yet vehicles as logistics are a very key elements in the success of SMEs, so this will go a long way in ensuring that they are able to afford,” said Toyota Kenya chairman Dennis Awori at the signing of the agreement yesterday.

The firms are also dangling a repayment holiday period of 90 days before installments have to be paid in a bid to entice car buyers.

Toyota Kenya said customers who get their cars through the programme will also get comprehensive insurance for a year but that it was yet to firm up the partnership with a specific insurance firm.

The loan deal between Toyota Kenya and NIC excludes public service vehicles.

It is an extension of similar partnerships aimed at boosting car sales, with the auto dealer inking a similar deal with NIC, which will see customers access up to 80 percent financing for its HINO trucks.

Others include Cooperative Bank

which partnered with Isuzu East Africa to offer 95 percent financing for its trucks and Taxify’s partnership with Stanbic Bank to offer 100 percent financing for vehicles from Simba Corporation’s sub-brand Renault.

Uber has also partnered with Stanbic, Sidian and Barclays banks to provide loans for cars deployed on its lower-cost service ChapChap.

Customers will be able to begin their loan applications online. The loans will have a 24-hour turnaround time.

“As partners, we have walked this journey together and it has informed our effort to always lookout for ways to add value to our customers by providing avenues for them to easily acquire brand new cars from Toyota through flexible financing solutions,” said NIC executive director Alan Dodd.