The Co-operative Bank of Kenya (Co-op Bank) and Isuzu East Africa have announced an enhancement to their asset financing deal, extending the repayment period by one year and offering customers up to Sh2 million in working capital loans. This partnership, which began in 2013, now spans over 11 years.
The revised asset finance program now encompasses schools and businesses seeking to acquire buses and commercial vehicles. Schools will benefit from 100 percent financing, while businesses can access up to 95 percent financing from Co-op Bank.
In addition to the extension of the repayment period from 60 to 72 months, businesses will have a 60-day grace period for commercial vehicle purchases. Schools, on the other hand, will enjoy a one-term moratorium and repayment extended to 72 months on a termly basis, totaling 18 terms with zero processing fees.
The eligible Isuzu vehicle models include the N-series, F-series, and Pickups TFS and TFR Series.
Managing Director Gideon Muriuki highlighted that the grace period, extended loan servicing period, and the provision of working capital loans will facilitate educational institutions and businesses in acquiring essential assets within their current financial capabilities.
Moreover, recognizing the financing needs of micro, small, and medium-sized enterprises (MSMEs), Co-op Bank is offering an additional digital credit of up to Sh1 million for MSME customers and up to Sh2 million for schools, complementing the asset financing scheme.
Insurance cover
CIC Insurance will provide cover for commercial vehicles at 4% of vehicle value and 3.5% for school buses.
Rita Kavashe, managing director of Isuzu East Africa, stated the new financing will aid customers during challenging economic times.
The deal covers all Isuzu vehicle models, crucial for scaling and growth.
Rising interest rates have hindered schools and businesses from making necessary asset purchases, impacting investments.
