Stanbic Bank Head of Vehicle and Asset Finance Marian Ochieng with Tata Africa Holdings (K) Limited Executive Director Naresh Leekha during the signing of the deal on August 22, 2018. PHOTO | DIANA NGILA | NMG
Johannesburg-headquartered commercial vehicle dealer Tata Africa Holdings, a subsidiary of Indian multinational Tata Group, has partnered with Stanbic Bank Kenya to help the firm’s vehicle buyers access loans.
Buyers of Tata pick-ups, trucks and tippers will get up to 90 per cent financing from the top-tier lender, the two firms announced on Wednesday.
Beneficiaries in the scheme, which will run for six months, will have to pay up the loan within 60 months.
“This partnership will go long way in making Tata vehicles and trucks very affordable for the Kenyan customers,” Tata Africa Holdings Kenya executive director Naresh Leekha said in a statement.
“It addresses one of the key obstacles to vehicle and trucks ownership in Kenya – high deposits and monthly installments.”
Tata sold 292 units out of the total 6,464 vehicles sold in the country in six months ended June, data from the Kenya Motor Industry Association shows. Stanbic has lowered the facilitation fee under the scheme to 0.5 per cent from market rate of 2.5 per cent of the total loan, while interest charges will remain at market rate.
The arrangement with Tata follows a similar one with ride-hailing firm Uber last September which enabled drivers with a passenger rating above 4.6 out of 5 and Sh300,000 revenue in three months to qualify for a three-year loan with a 14 per cent interest.
