Isuzu East Africa and Cooperative Bank of Kenya have signed an asset financing agreement to promote uptake of Isuzu’s heavy commercial vehicles. Under the deal, Micro, Small and Medium Enterprises (MSMEs) including learning institutions such as school, colleges and universities will have access to full financing to acquire new Isuzu buses and lorries. This latest deal is an improvement of an earlier one the two organisations signed in 2013.
While learning institutions will be able to enjoy up to 100% financing, businesses will get up to only 95%. The repayment period has also been extended from the earlier 60 months to 72 months with a 60-day grace period.
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“We will be offering the schools an additional Ksh 2 million in support of the operational needs and 100pc assets financing and extended their repayment tenure to 72 months. This is to cushion them from the high monthly loan installment terms in the market,” said William Ndumia Director Retail and Business Banking Co-op Bank.
According to the lender, they will offer working capital of about Ksh 1 million to support operation and maintenance expenses for MSMEs that can be accessed digitally through mobile phones and they will receive up to 95pc financing with options of repayment holiday of 60 days, this will give them time to build on their business liquidity
“Today, Isuzu East Africa has partnered with Cooperative Bank to provide solutions that will address the needs of our customers during these challenging economic times. We are thrilled to launch a joint asset financing partnership that provides a ninety five percent financing,” said Isuzu East Africa’s, Managing Director, Rita Kavashe
“Additionally, the customers will receive a Competitive insurance package where commercial vehicles will receive 4pc on the covers while schools will get 3.5 pc,” added Patrick Nyaga, Group CEO CIC Group.
Some of the Isuzu models covered under the deal include Isuzu N-series, Isuzu F-series and Isuzu Pickups TFS and TFR Series.
