Asset Finance

Asset finance (HP) is a product designed to facilitate financing of movable assets . This include motor vehicles, school buses, construction equipment, industrial equipment etc. with a minimum finance amount of Kes 300,000

Fees&Rates/Cost

Commitment/appraisal fees- 1.0% for new units and 2.0% for used units plus excise duty.This is charged as a percentage of the financed amount.

Rate of interest is 4.0% above the central bank rate (CBR)

Features:

New units: private vehicles

  • Finance up to 80% of the unit cost
  • Finance duration- max of 5 years

New units: commercial vehicles

  • Finance up to 70% of the unit cost
  • Finance duration- max of 3 years

Used units

  • Finance upto 70% for both private and commercial units
  • Finance duration- max of 3 years for both private and commercial units

Construction equipment

  • Finance upto 70% of unit cost
  • Finance duration- max of 5 years

Benefits:

  • Saves on business working capital
  • Low transaction costs compared to other loans
  • No additional security required- it’s self-securing
  • The depreciating component in the books of accounts leads to reduction in tax paid by the business