SBM Bank, Tata Holdings Africa Sign a Vehicle Financing Deal

Tata Holdings Africa (Kenya) and SBM Bank Kenya have agreed to a car financing deal that will allow customers to access vehicles on credit.

Following the signing of a Memorandum of Understanding (MOU) between the two companies, consumers will now have access to 100% financing for their car purchases.

Additionally, they will receive preferential rates and a maximum six-year repayment period.

Buyers will benefit from a 1% processing fee and a 60-day repayment time under the terms of the agreement.

Buyers of school buses will have 84 months to pay.

“The Kenya Vision 2030, the economic and macro pillar is a key component, making mobility a key driver of economic development. It facilitates the movement of goods, services and people, thus powering development in virtually all sectors such as agriculture, service, health and so forth,” SBM Bank Kenya Deputy CEO and Chief Commercial Officer Jotham Mutoka.

“The SME sector is also a key beneficiary given its contribution to the economy. It is therefore critical that avenues to enhance access to vehicles are created. Asset financing as enabled through this MOU is a win for us today and we hope it will bring our customers’ financial dreams one step closer,’’ he added.

The partnership aims to serve both individuals and large and medium-sized organizations.

“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,” Kamal Rohira, Auto Business Head, Tata Africa Holdings (K) Ltd said.

“TATA has an active population of more than 15,000 commercial vehicles in the country, which is served by 11 service stations and 23-part retailers. In this partnership, we go hand in hand with customers in making Tata commercial vehicles very affordable.”

Given the rising demand for construction-related vehicles, TATA Kenya recently opened a new branch in Kisumu with the intention of ensuring that customers have access to specialized services after the sale.

In their category, Tata Africa has been the market leader. Tata has also established itself as the preferred brand for the majority of those working in Kenya’s crucial construction industry.

The alliance, which officially started yesterday, will last for a full year.