ECONOMY

New Financing Deal to Help Schools Acquire vehicles

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Isuzu East Africa Co-operative Bank partnership
Ms Rita Kavashe, Managing Director Isuzu East Africa Ltd, Mr Patrick Nyaga Group CEO CIC Group and William Ndumia Director Retail and Business Banking at Co-operative Bank sign the agreement to facilitate the partnership. (Photo: Courtesy)
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Isuzu East Africa and the Cooperative Bank have announced an asset finance scheme designed for schools and businesses that desire easier financing terms. A good number of educational institutions and business continue to record reduced cashflows, which calls for easier financing terms.

“Today, Isuzu East Africa, has partnered with the Cooperative Bank to provide solutions that will address the needs of our customers during these challenging economic times,”  Isuzu East Africa Managing Director, Ms Rita Kavashe, said.

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The financing scheme provides a 95% financing option for Isuzu N-series, Isuzu F-series and Isuzu Pickups TFS and TFR Series.”

The current operating environment has affected the ability of many schools and businesses to secure necessary cash deposits for asset purchases. This financial constraint limits their ability to initiate or expand investments in critical assets. The Isuzu/Cooperative Bank Asset Finance Scheme provides the financial boost to enable customers raise enough cash deposits for purchasing new vehicles.

“The partnership aims to make vehicle acquisition easier for Kenyan schools and businesses with 100% and 95% asset financing respectively. The financing options cover all Isuzu vehicle models,” said Ms Kavashe.

Cooperative Bank Managing Director and Group CEO, Dr Gideon Muriuki, observed that the partnership with Isuzu East Africa will assist educational institutions and business acquire the critical assets they require within their current financing abilities.

“We have observed that a good number of our business customers are giving priority to financing their stocks and operations. We have therefore made available an additional digital credit of up to Ksh1 million for MSME customers and Ksh2 million to schools over and above the 95% and 100% asset financing,” said Dr Muriuki.

In addition, Co-op Bank announced that customers will also enjoy an extended loan repayment period of up to 72 months. Educational institutions will have a one-term moratorium when they purchase the buses, with repayment extended to 72 months on termly basis, which adds up to 18 terms at 0% processing fee, in addition to a working capital loan of up to Ksh2 million.

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Written by
BILL YAURA -

Bill Yaura is a Correspondent for Business Today. He can be reached on email: [email protected]

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