Asset Finance

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

 

Fees & Rates/Cost

These are the rates for business financing in Kenya: 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 in business asset financng 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