NCBA Bank Kenya has launched a logbook loan product that will enable Kenyans to access up to 50 % financing against an owned vehicle.
Under this NCBA financing solution, Kenyans will be able to borrow funds against a vehicle that they already own provided the vehicle is not under any financing.
Upon application, customers will be able to receive feedback in 12 hours. Customers can take logbook loans of a minimum value of Kes 100,000 and a maximum value determined by the customer’s ability to pay subject to a cap of 50% of the value of the vehicle.
“Businesses are facing very difficult times especially due to COVID 19 and so we see this financing solution as an opportunity to support businesses that are still grappling with the after-shocks of the pandemic,” Lennox Mugambi – Group Director, Asset Finance and Business Solutions at NCBA Bank said in a statement.
Logbook-based financing allows customers to tap into the value of their vehicles to access cash in a relatively short time and under more flexible terms. Furthermore, the repayment cycle is either monthly or seasonal based on the customer’s income cycle, making it a good option to meet emergency financing needs.
“With this financing solution, businesses can now access cash and direct the same to capital expenditure or working capital within the mainline of business activities. For the employed, they could use the funds for investment, personal development, and education,” concluded Mr. Mugambi.
The lender’s new loan product is open to both existing and non-bank customers as long as one meets the qualification criteria.