Family Bank inks car financing deal with Simba Corp

Mid-tier lender Family Bank Thursday entered into an asset financing deal with auto firm Simba Corporation Ltd targeting individuals and small and medium enterprises (SMEs).

Under the new arrangement, customers will secure vehicles from Simba Corp and the partnering bank will fund the deal allowing the buyer to repay the loan at period agreed on with the financier. Customers will have an access up to 95 per cent financing.

The deal seeks to increase Family Bank’s customer base in a bid to boost its revenue as it strives to become a top tier lender by next year.

“Our customers will also have an all-encompassing asset purchase solution including flexible repayment period, free vehicle tracking from Africa Fleet Management Solutions — a subsidiary of Simba Corporation and free comprehensive insurance for the first year of ownership with the purchase of commercial or passenger vehicles,” said retail director David Thuku in a statement Thursday.

This move comes two days after the bank launched the sale of the first tranche of its Sh10 billion bond.

Family Bank said it plans to spend the proceeds from the bond on branch expansion, investment in ICT software, increasing its loan book, and strengthening its capital base as well as in funding its expansion.

On regional expansion, the institution this would be enabled through buying existing businesses as opposed to establishing from the scratch.

Simba Corporation executive director Dinesh Kotecha said the pact with the Family Bank would help the company drive up its sales volume.

“This strategic partnership spells out favourable conditions for our customers,” said Mr Kotecha.

Simba Corp recently announced its partnership with Vivo Energy Kenya, the sole distributor and marketer of Shell-branded fuel and lubricants, in a deal that will enable Vivo to access vehicle leasing solutions from the auto firm. The deal involves leasing 46 Mitsubishi staff vehicles at a cost Sh161 million.