Stanbic Bank enters car financing deal with Caetano Kenya

By InstinctBusiness Dec 17, 20210

Stanbic Bank has signed a deal with Caetano Kenya to finance customers buying Hyundai and Renault brands from the motor dealer.

Stanbic’s head of Consumer and High Networth Clients, Lilian Onyach, said the agreement would see customers access up to 100 percent financing for five years.

“This strategic tie-up with Caetano Kenya is crucial and quite timely, as it will benefit many of our clients who previously would not have been able to acquire assets or financing for new and quality vehicles,” said Ms. Onyach in a statement.

The lender will not charge customers interest on the loans, whose turnaround time is expected not to exceed three working days. Customers will also enjoy a 30-day repayment holiday.

Caetano Kenya sells Sedan, Crater, Tucson, Santa Fe, Palisade and the recently launched Kona Electric models from Hyundai. Under the Renault collection, the dealer stocks KWID, Triber, Duster, Kangoo and Koleos models.

The deal is expected to boost car sales for Caetano, which were hit by Covid-19 related disruptions.

Sales of new motor vehicles have surged 35 percent in the first half of the year as the economy recovers from the pandemic shocks.

Dealers such as Simba Corporation, Toyota Kenya and Isuzu East Africa moved 6,246 units in the first six months compared to 4,628 units the year before when the coronavirus disruption was most severe, data from Kenya Motor Industry Association (KMI) shows.