Kenyans seeking to upgrade their lives by purchasing cars have a new, easier way to do so. Mwananchi Credit, the leading secured loans provider, is offering low interest rates of up to 2% and flexible payments on loans for acquiring new cars and trading-in of old vehicles through a hire-purchase financing model.
The credit company has also increased the speed of processing the asset financing credit to just six hours, making it the fastest loan service under this category. The financing covers 90% of the car value while the vehicle serves as the security for the loan.
“We process and disburse your loans within 6 hours,” says Mwananchi Credit CEO Dennis Mombo. “We also pay off all import duties and other taxes for the buyer in case one wishes to do a direct import from the UK or Japan.”
A car has become a necessity in Kenya, fuelled by an inefficient public transport system and a growing middle-class population. Most of the car purchases are powered by either commercial credit or company loans. But with tightening liquidity in the market due to the Covid-19 pandemic, finding affordable loans to purchase a car is getting harder.
Mombo says Mwananchi Credit is making it easier for Kenyans to purchase cars for personal or commercial use without compromising on their cash flows. The Asset Finance facility offers loans as low as Ksh100,000, with the maximum limit determined by the value of the car being purchased under a six to 24 months payment plan.
“The loan comes with two options,” Mombo says, “We finance a percentage of the cost of the vehicle and a trade-in where you trade-in your old car for the new one and we finance you the difference.”
The car trade-in loans targets car owners who wish to trade-in old cars for brand new ones. Mwananchi Credit pays the difference in price between the old and new vehicles upon which the car owner repays the loan in flexible installments.