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How Co-op Bank’s vehicle financing has come as a relief to business owners

In mid March, Co-operative Bank launched a fresh deal that would see small and medium business people access loans to acquire commercial vehicles at affordable rates.

This had followed a deal between Co-op Bank and General Motors East africa (GMEA). According to the deal, you would be able to get up to 95 per cent financing to get brand new Isuzu pick ups and trucks.

Interestingly, the bank would charge you a cost of 14 per cent on reducing balance. “We admit that there is much more that is involved in running a business apart from owning the vehicle. Our customers will, therefore concentrate more on doing other things involved in running their businesses,” Cooperative Bank Retail Business Manager Maurice Motuma said.

CLICK HERE TO APPLY FOR CO-OP BANK VEHICLE FINANCING

To ensure that your business stayed afloat, the bank added an icing to the loan: it would come accompanied by a Sh. 300,000 working capital which you’d pay within a year.

On the other end, the car loan would be payable within a five year period. Barely a month after the launch, Dominic Waitere is one of the many small and medium business owners who have taken advantage of this new loan package at Co-op Bank.

“I have successfully acquired a new Isuzu D-Max pick upwhich has come as a relief to my business,” says the 36-year-old who owns a tomato selling joint in Ol Kalou, Nyandarua County.

According to Waitere, he previously had to hire pick ups and trucks to ferry crates of tomatoes from Subukia. “This slashed the profit I would get from a stock since I had to factor in the transport costs that run up to Sh. 30,000 in some months,” he says.

Last weekend, Waitere used his new Isuzu D-Max for the first time. Interestingly, he was able to cut down his costs from around Sh. 8,000 per trip to just Sh. 3,500. “I only had to cater for my fuel rather than fuel and hiring fees that I previously had to cough up,” he says. By the end of this month, Waitere will save over Sh. 18,000 from his business. “I am planning to use these savings to repay the loan. This means that I will not need to cough up extra money to cater for my loan.”

To apply for a vehicle financing loan at co-op Bank, you can CLICK HERE

You may also visit your nearest Co-operative Bank.

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