Local vehicle assembler Isuzu East Africa and Co-operative Bank #ticker:COOP on Wednesday inked a partnership deal that will see local Small Medium Enterprises (SMEs) access 95 percent financing when purchasing commercial vehicles from the auto-dealer.
The SMEs will also have access to up to Sh300,000 in additional one-off loans for working capital and the total value of the insurance cover for the first year on purchasing the asset.
Each loan will attract an interest of 13 percent per annum.
Isuzu and Co-op Bank have brought in CIC Insurance Group #ticker:CIC for the comprehensive cover package priced at 4.75 percent of vehicle value. The insurance deal will also cover the Isuzu truck and pick-up owners from political violence and terrorism risk.
“This asset financing product was developed to address the pain points of the SMEs. Those accessing the loans will have 60 months to repay and this means that the instalments will not weigh their businesses down,” said Isuzu EA Managing Director Rita Kavashe.