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