The Co-operative Bank of Kenya has announced a new partnership with Toyota Kenya that will enable the bank’s customers to purchase commercial and personal vehicles under Toyota Kenya’s portfolio with a down payment of as low as 5 per cent.
The strategic scheme put in place to aid business and individuals recover from the ravages of the coronavirus pandemic will be able to finance up to 95 per cent of the total cost of the loan. Customers will also be able to enjoy a grace period of 60 days before they begin to pay back the loan.
“Repayment of the loan is for a long period of up to 60-months. Co-op Bank will also extend a Kshs. 500,000 working capital loan – without additional security – to the successful applicants of the Toyota Vehicles,” read a statement from Co-op Bank.
The new partnership also opens new doors for fleet customers under Coop Fleet Africa, the leasing arm of Co-operative Bank Group, to be able to acquire more units. This is an amplification of an existing deal that only covers the commercial segment with the financing of the Hiace van and Hilux pickups.
Managing Director Toyota Kenya, Arvinder Reel that the pandemic was an eye-opener and brought the need to support crucial sectors of the economy.
“Our partnership with Co-op Bank goes beyond just the sale of the vehicles. We are saying this is an improved partnership since customers will also receive professional training for their drivers under the Toyota Advanced Driving programme and the Yamaha Riding Academy, for those who purchase the Yamaha motorbikes,” said Mr Reel.
Co-op’s Director of Corporate and Institutional Banking, Mrs Jacquelyne Waithaka said that the scheme is available for those customers who want direct acquisition of the vehicles, or for leasing.
The bank has made the terms flexible to accommodate MSME’s, Co-operatives, Corporate,
Individuals and Farmers, to support them rebuild their businesses as the economy re-opens.
Co-op’s interest rate remains at 13 per cent.
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