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Absa Extends Its Asset Repayment Tenor to Six Years

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Absa Bank Kenya Plc CEO Jeremy Awori. The bank has announced an extension of its asset financing repayment tenor.
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Absa Bank Kenya PLC has enhanced its vehicle asset financing proposition by extending the repayment period to six years or 72 months, the longest tenor in the vehicle asset financing industry.

The deal also comes with a Ksh300, 000 vehicle maintenance limit on credit cards for customers who take up the offer to support them maintain their vehicles, including managing their fuel purchases. This is in addition to the 95% funding offer for customers purchasing new vehicles of their choice, both in the commercial and passenger services categories.

Under this deal, the bank has partnered with the four major distributors in East Africa, namely Toyota Kenya, Isuzu East Africa, DT Dobie, and Simba Colt.

Speaking about this partnership, Absa Bank Business Banking Director, Elizabeth Wasunna, reaffirmed the bank’s commitment to providing tailor-made, value-adding solutions to its customers at affordable interest rates and sufficient repayment periods.

“We are in an unprecedented economic time and well apprised of the ravaging effects of the Covid-19 pandemic on all sectors, particularly SME sector. This partnership with the four-vehicle dealers acknowledges this, hence the packaging of what we consider as an affordable, accommodative and flexible financing deal,” said Wasunna.

Under the deal, SMEs, salaried customers, and those in the expansive commercial business space, including schools, colleges, churches, and others will have access to a holistic proposition that also includes insurance and insurance premium financing, all under one roof.

Wasunna further added that the financing deal is open to both Absa Bank customers and potential customers who would wish to purchase vehicles and are looking to be financed by a financial institution.

Unit Trust Funds

In November, the Capital Markets Authority (CMA) greenlighted Absa’s registration of Absa Unit Trust Funds which comprise of the 5 Funds namely; Absa Shilling Fund, Absa Dollar Fund, Absa Bond Fund, Absa Equity Fund, and the Absa Balanced Fund.

According to the Capital Markets Act, a collective investment scheme includes an investment company, a unit trust, a mutual fund, or another scheme which is incorporated or organized under the laws of Kenya which collects and pools funds from the public or a section of the public for the purpose of investment; or is managed by or on behalf of the scheme by the promoter of the scheme.

ABSA Asset Management Limited is a fully owned subsidiary of Absa Bank Kenya PLC.

See Also>>>> Absa Profits Tumble 65% to Sh1.9bn on Coronavirus

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