Toyota Kenya and Co-operative Bank #ticker:COOP have signed an agreement to offer buyers of the motor dealer’s matatus discounted financing costs in a bid to grow sales.
Buyers who pay half the price of the Sh3.9 million Toyota Hiace in cash will get zero per cent interest one-year loans to fund the balance, with Toyota absorbing the interest payments. Those seeking 80 per cent financing to buy the model will pay a 14 per cent interest rate for loans payable in four years. Both options will require a one per cent commitment fee and comprehensive insurance cover, Co-op said. This means the bank will earn Sh39,000 on each matatu sold in the deal targeting long-distance matatu co-operative societies.
