Stanbic Bank Kenya and Tata Africa have sealed a deal that will for the first time in the Kenyan market incorporate insurance financing as a top-up to the asset financing loan in a competitive vehicle financing package.
The financing offer will apply to both existing Stanbic Bank Kenya clients and new clients.
“By partnering with Tata Africa, Stanbic hopes to spur growth in the construction sector and support its customers to acquire quality assets. This bundled offering will ease the burden of accessing funds for insuring their assets, giving them peace of mind and allowing them to focus on growing their businesses,” said head of client solutions at Stanbic Bank Kenya, Anjali Harkoo.
The agreement signed between the two entities will allow customers to be able to acquire Tata units, with Stanbic Bank offering up to 95 percent financing for up to a five-year repayment period with the option for bundling the Insurance Premium with loan repayment. Depending on the loan repayment period, the insurance premium shall be spread over the full payment period, an arrangement that makes it easier for clients to pay, especially when the vehicle has not yet started generating income.
Currently, most banks in Kenya offer an insurance premium that has a maximum tenure of 10 months with clients having to apply afresh for each insurance financing. Usually, the repayment amounts are high due to the short tenure of the loan.
“The partnership targets individuals, Small Medium Size companies and large commercial businesses for easy and attractive Loan up to 95-100 percent of the vehicle cost. TATA has an active population of more than 15,000 commercial vehicles in the country, which is served by 11 service stations and 23-part retailers. In this partnership, we go hand in hand with customers in making Tata commercial vehicles very affordable,” said Kamal Rohira, Auto Business Head – Tata Africa Holdings (K) Ltd .
TATA Kenya has recently opened TATA Authorized Service Stations (TASS) in Eldoret & Kisumu. This move aims to ensure that customers get access to specialized services post-purchase, given the rising demand for vehicles used in construction. The pact begins on October 14, 2021 and will last for one year.
Anjali Harkoo further noted that the move was timely as numerous businesses are on a recovery path after a challenging phase brought about by the extended p******c period. The bank through its Vehicle and Asset Finance offering, is working towards assisting its clients in getting their businesses back on track. This move speaks to the bank’s brand promise, Kenya is our home, we drive her growth, by forging strategic partnerships that empower businesses to achieve their goals.