Co-op Bank Kenya To Finance Toyota Kenya Vehicles Up To 95%
Toyota Kenya and Co-operative Bank have entered into a strategic financing partnership that will enable the bank’s customers to purchase…
Toyota Kenya and Co-operative Bank have entered into a strategic financing partnership that will enable the bank’s customers to purchase commercial and personal vehicles under Toyota Kenya’s portfolio, including Toyota, Suzuki, Hino, and Yamaha.
The new partnership, which also allows fleet customers Co-op Bank Fleet Africa Leasing Ltd., the leasing arm of Co-operative Bank Group, to acquire more units. This is an amplification of the existing deal that only covers the commercial segment with the financing of the Hiace van and Hilux pickups.
In an effort to spur business take off and growth from the adverse negative impact of the Covid-19 pandemic on the economy, Co-operative Bank will also extend a Kshs. 500,000 working capital loan without additional security to the successful applicants of the Toyota Vehicles in addition to providing a 2-month (60 days) grace period. This is on top of up to 95% financing towards the acquisition of the vehicles, payable within 60-months.
Toyota Kenya Managing Director, Arvinder Reel, in lauding the improved deal said the pandemic demonstrated the need to support individuals and sectors that are at the heart of the country’s economy with flexible options to acquire key assets for their operations.
“Our partnership with Co-operative Bank goes beyond just the sale of the vehicles. We are saying this is an improved partnership since customers will also receive professional training for their drivers under the Toyota Advanced Driving program and the Yamaha Riding Academy, for those who purchase the Yamaha motorbikes. From our lineup of quality, durable and reliable commercial and passenger vehicles, Toyota Kenya shall continue prioritizing solutions that support Kenyans towards their personal and business re-building in the wake of the pandemic.”
Mr. Reel added, “Additionally, Toyota Kenya has over the years been a great champion of growing the local automotive industry through the production of various models under its stable, hence building the local content supply chain, transferring technology, and creating direct and indirect jobs for Kenyans. Currently, Toyota Kenya locally assembles 11 varied models which include Hilux & Landcruiser pick-ups, Hino trucks, and Yamaha motorcycles.”
On her part, Co-operative Bank’s Director of Corporate and Institutional Banking, Mrs. Jacquelyne Waithaka said that the scheme is available for those customers who want direct acquisition of the vehicle of choice or for leasing. The bank has made the terms flexible to accommodate MSMEs, Co-operatives, Corporate, Individuals, and Farmers, even as the economy opens. The terms are attractive especially on the 2 months grace period.
Even after the lifting of the interest rate capping, the two firms have agreed to keep the borrowing rate at 13% per reducing balance. This also allows individual customers to purchase any Toyota Kenya models ranging from Toyota, Hino, Suzuki, or Yamaha at a competitive rate.