Stanbic Bank Kenya has entered into a partnership with Tata Kenya to offer car financing loans plus insurance financing for the acquisition of Tata vehicles. The financing offer will apply to both existing Stanbic Bank Kenya clients and new clients.
The agreement signed between the two entities will allow customers to acquire Tata cars. Stanbic Bank will offer up to 95% financing for up to 5 years 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 in an arrangement that makes it easier for clients to pay.
Most Kenyan banks currently offer an insurance premium with a maximum tenure of 10 months with clients having to apply afresh for each insurance financing.
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.”
On his part, Kamal Rohira, Auto Business Head at Tata Africa said, “The partnership targets individuals, SMEs and large commercial businesses for easy & attractive loans of up to 95-100% of the vehicle cost. In this partnership, we go hand in hand with customers in making Tata commercial vehicles very affordable.”
TATA Kenya recently opened TATA Authorized Service Stations (TASS) in Eldoret and Kisumu. The move was aimed at ensuring customers get access to specialized services post-purchase, given the rising demand for vehicles used in construction.
TATA Africa Holdings Kenya Limited set up operations in Kenya in 2006 and is a fully owned subsidiary of TATA Africa Holdings (SA) Pty Limited. The major business interests of TATA Kenya include assembly and distribution of Tata Commercial vehicles; distribution of John Deere Tractors, implements and Agricultural machinery, pharmaceutical distribution. They also trade in infrastructure and construction equipment, and ICT development.