Best asset finance bank in Kenya

2194

Which is the best Asset Financing Bank in Kenya?

There are many factors to consider before you decide on the best bank to approach for financing. Asset Financing comes in form of a loan and in consideration are the following assets:

  1. Cars
  2. Trucks
  3. Plots
  4. Houses/Apartments
  5. Heavy Earth Movers
  6. Limited and Partnership financing
  7. Heavy Commercial Vehicles
  8. Parliamentary Vehicle Scheme
  9. PSV Scheme
  10. Insurance Premium Financing

Before you go for financing,you should have this in mind:

What are the terms?

How long will I take to pay the loan?

What percentage does the loan cover?-above 80 % is good

What is the interest rate?

Following review from customers of various financial institutions, the following banks qualified as the best for asset financing

  1. KCB BANK

KCB Bank finances several assets  and their terms are set such that they favour their customers. Any customer with an active bank account qualifies for the service. Below we give details of available loans.

Asset Finance

This short term solution allows you to expand and modernize your business by acquiring assets for immediate use, without committing valuable capital or savings right away.

Financing is available for:

Schools and Learning Institutions

Benefits

  • Schools are not subjected to turnover criteria
  • Convenient means of acquiring assets e.g. School buses

Requirements

  • O.G minutes approving purchase of the bus
  • Consent from Ministry of Education
  • Zero deposit
  • Repayment period of 24 to 60 months
  • School registration Certificate- Ministry of Education
  • Bank statements of one year
  • Cash flow projections for 1 year
  • Actual annual revenue collections
  • Vehicle to be fitted with anti-theft device
  • Suppliers of ABF facilities must open KCB accounts for purposes of receiving payments

Sole-Proprietors/Limited Companies

Benefits

  • Reliable and flexible means of acquiring assets e.g. PSV and personal
  • Low deposit of only 30% for PSVs
  • Low deposit of only 10% for personal vehicles

Requirements

  • All Sole-proprietors should apply in their Business Names
  • Loan repayment period for PSV is 24 months
  • The vehicles should be under warranty period of 2 years
  • The applicant should have been in business for a minimum period of 3 years and have a minimum of 2 PSV vehicles
  • All invoices should include tracking device costs
  • Customers requiring IPF to apply by filling the Tripartite Agreement attached to the IPF circular

Heavy Commercial Vehicles, Trucks, Trailers, Pick-Ups and other Commercial Vehicles

  • New Vehicles – 90% finance for maximum 60 months.
  • Used Vehicles – 80% finance for maximum 48 months.
  • New trailers but with P/Mover as collateral at 80% loan of 60 months.

Machinery, Tractors, Heavy Earth Moving Equipments’ & Specilized Equipment

  • New machines and equipment 80% financing for maximum of 60 months.
  • Tractors – maximum 50% finance for 24 months any additional finance be covered by additional collateral.
  • Specialized machines – maximum 50% finance for maximum 36 months.
  • IT and Computer Equipment at 70% for 36 months.
  • Heavy earth moving equipment’s for a maximum 80% finance
  • Moratorium period for machines is allowed to facilitate installation and testing.

KCB ‘’Car Loan’’

  • 90 % financed for new vehicles and 80% financed for the used vehicles
  • Maximum loan period 5years new vehicles and 4years for Used vehicle

Dealer Promotion Schemes

  • Up to 95 % financing for new units
  • Maximum loan period 5years for new units.
  • Price of units on promotion is usually pre-negotiated
  • Unique features advised from time to time.

Parliamentary Vehicle Scheme

  • Fast turnaround time as most conditions are easy to meet.
  • Risk Margin to cover death and permanent disability.
  • 100% financing for brand new vehicles.
  • Maximum 54 months repayment period.

Insurance Premium Finance (For Individual, SMEs, Corporates, Brokers)

  • 100 % financing
  • Discounted Interest rates
  • First instalment is paid upfront
  • Loan repayment period of up to 10months
  • Discounted Insurance premiums quoted by KCB Bancassurance

PSV Scheme

  • 80% Financing
  • Maximum 36 months
  • Must be a member of a Sacco
  1. CBA BANK

The second in our list is CBA Bank.This particular bank charges interest rate of 14,which is lower than the maximum interest rate cap set by the Central Bank of Kenya. Terms of the loan are:

Asset Finance

Our asset finance loan facility is designed to enable you to acquire moveable assets with ease. With this product, you can acquire an asset and use it as security for the facility. This product targets corporate customers, institutional customers, SME customers and individuals.

Our documentation is simple, straightforward and there are no hidden costs. The level of finance we grant allows you or your business to continue operation unhindered. In most cases this product will allow you to purchase vehicles, plants and equipment. We are also able to offer structured leasing solutions which enable you to make use of assets without having them on your balance sheet.

Features

  1. Age Limit
    1. Saloon (Personal/private vehicles) & Commercial- New to 8 years old
    2. Equipment – New and few (bank selected 2nd hand) : Includes-: Computers, laptops, other serialized office equipment,construction equipment, earthmovers, medical equipment. (additional collateral  is  required e.g. logbook of a vehicle, landed property, Fixed deposit).
    3. Tractors – New
    4. School Buses – New
  2. Deposit (Customer contribution)
    From 10% of the total cost of the vehicles – New vehicles, and 20% for 2nd hand vehicles, 30% for tractors.
    NOTE: For 2nd hand vehicles – ( calculated on either the valuation or the total cost – whichever is lower).
    Subject to credit appraisal.
  3. Interest Rate: Currently 14% p.a – Reducing balance. Note : Rates are reviewed from time to time depending on market trends.
  4. Repayment Period
    Maximum 5 Years for New Vehicles
    Maximum 4 Years for 2nd hand Vehicles
    Maximum 3 Years for Equipment and Machinery
  5. Termly payment option for Schools is available
  6. Insurance -Comprehensive- Through our approved underwriters, with Bank’s interest noted on the policy
  7. Registration –The vehicle will be jointly registered/Transferred (Customer name and the Bank)
  8. Facility Fee 1% – 2% of Amount Financed (based on Type of Asset & existing Relationship).
  9. Vehicles must be fitted with Tracking Device from an approved service provider.

REQUIREMENTS TO APPLY:

  • CBA Asset Finance Application Form.
  • Identification Documents (whichever is applicable) e.g. I D Card Copy, P.I.N. Copy, Certificate of Registration, Incorporation certificate, Memorandum & Articles of Association.
  • Proforma Invoice for all New Assets. For machinery/Non vehicle – attach catalogues and product specifications
  • Financial information : Bank Statements, Audited accounts, Cash flow projections etc (whichever is applicable)
  • Other documents that may be required for Credit Analysis & evaluation depending on the nature of Request.

USED

  • Photocopy of Logbook and/or copies of import papers(IDF, Import entry, Duty paid receipt, foreign logbook etc)
  • Original Comprehensive Valuation Report – from A.A. of Kenya Limited or Regent Valuers.
  1. STANBIC BANK

The third bank is Stanbic Bank,which has penetrated most parts of Africa.Asset Financing is one of their main products.To qualify for the same,you need to fulfill the following conditions:

What does it offer me?

  • Competitive interest rates in both local and foreign currency
  • New or used assets may be financed

Insurance premium financing option to help you with your insurance payments

  • Automatic reminders of insurance expiry
  • Financing of machinery, office and medical equipment
  • Flexible financing terms for up to 60 months
  1. NIC BANK

Our fourth and last bank is NIC Bank.NIC finances insurance premiums,motor,mortgages and hire purchase.

Terms of the loans are:

INSURANCE PREMIUM FINANCING (IPF)

Insurance Premium Financing (IPF) is a facility that enables you to pay your insurance premiums in installments rather than in one lump sum amount. IPF is only taken for short term policies, that is, those that are renewable annually.

Examples of such insurance policies:

  • Fire and perils
  • Motor – Commercial or Private
  • WIBA
  • Burglary
  • Medical Insurance
  • Contractors all risk
  • Group Life

IPF allows an organization to obtain needed coverage without liquidating other assets or offering up collateral as with ordinary loans. For organizations, multiple insurance policies can be attached to a single premium finance contract allowing for a single payment plan to cover all insurance coverage.

REQUIREMENTS

  • Copy of National ID/PIN for individual applicants
  • Copy of Certificate of Incorporation/ Certificate of Registration for business entities
  • Company PIN
  • Copy of Memorandum & Articles of Association, Partnership Deed or other constitutive document as per registered entity type for corporate entities

REQUIREMENTS

Choosing the right mortgage plan is a top priority when beginning the journey to home ownership. The option you choose should fit your unique needs and preferences. At NIC we have a dedicated team of Mortgage specialists to walk with you through the journey towards securing your dream home.

NIC Mortgage offers you a variety of options:

  • Equity Release – Financing against your already existing house
  • Purchase Financing – Loan that funds to buy a readymade house
  • Top-Up – Increase in value of your existing mortgage due to reduction of loan amount or appreciation of property value
  • Balance Transfer/Refinance -Transfer of an existing mortgage from one financier to another
  • Construction Finance – Loan that funds the building of a residential  home or residence
  • Plot Purchase – Financing to buy vacant land

REQUIREMENTS

Up to 90% financing for Kenyan residents and 70% financing for Kenyans in the diaspora

  • Mortgage Protection Insurance (MPI) cover that takes care of retrenchment, death and disability and social perils cover included
  • Competitive Interest rates
  • Flexible repayment periods of up to 20 years
  • No penalty for early repayment
  • Available to both Kenyan citizens and non-Kenyan permanent residents
  • We arrange for valuation and legal processes by bank-appointed service providers
  • Joint applications allowed
  • Minimum amount of KES 1 million. Maximum amount is based on your ability to repay.
  • Interest is charged on a reducing balance basis
Share 0
Tweet 0
Total
0
Shares
Share 0
Tweet 0
Pin it 0
Share 0