Companies

Simba Corp, GAB in vehicle financing deal

naresh

Simba Corp Motors MD Naresh Leekha. PHOTO | DIANA NGILA

Islamic lender Gulf African Bank (GAB) has signed a deal with Simba Corporation to finance customers’ purchase of a wide range of trucks and pickups sold by the family-owned motor vehicle dealer.

The deal, the lender’s second after a similar one with Japanese motor vehicle dealer Isuzu East Africa in May, will see the bank provide up to 95 percent of funding.

“We have a lot of customers who come asking for this type of arrangement. We see about 10 percent of our sales or about 200 vehicles going into this partnership in the first year,” said Naresh Leekha, the Simba Corp managing director for motors. Under the deal, customers will enjoy a two-month grace period before they start making the monthly instalments over a five-year duration to service the loans.

Gulf African managing director Abdalla Abdulkhalik said customers who take up the asset financing arrangement will enjoy Sh300,000 working capital loan to boost their businesses.