Stanbic Bank Kenya and Tata Africa have sealed an asset financing loan deal that will incorporate insurance financing as a top-up to the vehicle financing package.
The agreement will allow customers to be able to acquire Tata Units, with Stanbic Bank offering up to 95 per cent financing for up to a five year repayment period with the option for bundling the Insurance Premium with a loan repayment.
Depending on the loan repayment period, the insurance premium shall be spread over the full payment period, an arrangement that makes it easier to clients to pay, especially when the vehicle has not yet started generating income.
The financing offer applies to both existing Stanbic Bank Kenya clients and new clients.
Speaking at the launch of the partnership, Head of Client Solutions at Stanbic Bank Kenya, Anjali Harkoo said, “By partnering with Tata Africa, Stanbic hopes to spur growth in the construction sector and support its customers to acquire quality assets.”
“This bundled offering will ease the burden of accessing funds for insuring their assets, giving them peace of mind and allowing them to focus on growing their businesses,” said Harkoo.
Currently, most banks in Kenya offer an insurance premium that has a maximum tenure of 10 months with clients having to apply afresh for each insurance financing. Usually, the repayment amounts are high due to the short tenure of the loan.
Harkoo further noted that the move was timely as numerous businesses are on a recovery path after a challenging phase brought about by the extended pandemic period.
The bank through its Vehicle and Asset Finance offering, is working towards assisting its clients in getting their businesses back on track.
