SBM Bank, Tata Kenya Partner to Offer 100% Vehicle Financing

SBM Bank Kenya has signed a Memorandum of Understanding (MOU) with Tata Holdings Africa (Kenya) to offer their customers 100% financing for vehicle purchases. The facility will be available for individuals, Small & Medium Size companies, and large commercial businesses with preferential rates and a repayment period of up to six years.

This asset financing facility will offer customers 1% processing fees, an attractive interest rate, and a payment holiday of 60 days. Customers will also be able to access insurance premium financing as a key benefit. This partnership will provide a competitive financing option for Kenya’s automobile industry, with the aim of giving customers a financing option that will help them achieve their business objectives in a convenient manner.

SBM Bank Kenya Deputy CEO and Chief Commercial Offer, Mr. Jotham Mutoka, stated that the partnership will go a long way in enhancing the bank’s value proposition for its customers. “Our shared vision of providing affordable and accessible financial solutions to our customers is finally coming to life,” he added.

Kamal Rohira, Auto Business Head, Tata Africa Holdings (K) Ltd, said that the partnership targets individuals, Small Medium Size companies and large commercial businesses who are looking for a competitive rate of interest and easy & attractive facility of up to 100% for 6 years and with a payment holiday of almost 60 days. He also highlighted that Tata Africa has more than 15,000 commercial vehicles in Kenya and has become a brand of choice for most in the construction sector.

Under this partnership, customers wishing to buy vehicles will be able to repay the loan within 72 months, while those purchasing school buses will have a repayment period of 84 months. Customers will also receive a credit card to fuel their vehicles as well as other business expenses, providing better financial planning during this period.

This asset financing solution is significant in enhancing the bank’s value proposition to its customers as it marks five years since its establishment in Kenya. The partnership will commence on 2nd May 2023 and will last for a one-year period.