Stanbic Bank, CMC strike vehicle financing deal

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Stanbic Bank
PHOTO/COURTESY: Stanbic Bank

Stanbic Bank has signed a vehicle financing deal with motor dealer CMC Motors Group that will see the lender provide up to 100 percent funding for clients interested in acquiring Ford vehicles over the next two-and-a half months.

The loans will attract an interest rate of 13 percent per annum and a one percent facility fee for one-off upfront payments with customers having the option to repay the loan in six years’ time. Buyers are also entitled to a 60-day repayment holiday with insurance for the vehicles being offered by Stanbic Insurance Agency.

“CMC Motors Group is one of our valued partners and client. We will continue to further strengthen our ties and collaborate in ensuring that our mutual clients get access to financing for quality vehicles. Our customers are our biggest concern always and we strive to ensure that they are supported by giving them easier options when purchasing these vehicles,” Stanbic Bank Head of Business Banking Tom Bisonga said in a statement.

The move by Stanbic highlights a growing trend in the banking industry that has seen lenders partner with car dealers to provide vehicle financing deals for their clients. In September for example, NCBA Group, then NIC Bank, inked an asset financing deal with vehicle manufacturer Isuzu East Africa to allow Small and Medium Enterprises (SMEs) secure trucks and pickups from the car maker. The deal, dubbed “Zero Disruption”, saw NIC Bank provide up to 95 percent financing to the lender’s SMEs customers interested in acquiring trucks from the auto-dealer through its credit facilities.

In May this year, Gulf African Bank signed a one year deal with Isuzu to provide up to 95 percent funding for clients eyeing various trucks manufactured by the Japanese automaker. The banks customers will provide the remaining five per cent in the deal that is estimated to make Isuzu sell approximately 1,000 of its vehicles locally.

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