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The Definitive Guide to Asset Financing in Kenya

For many people in Kenya, asset financing is the only way to realize their ambitions. Many Kenyans, however, find it difficult to realize their dreams of buying a home or a vehicle.

That is why today’s post aims to provide you with information on how Kenya’s eight largest financial institutions may help you realize your ambitions of owning a home or a car.

Kenyan Asset Financing Banks

In Kenya in 2022, the following banks will provide Asset Financing:

1. NIC Bank

Kenyans have high goals, which NIC Bank recognizes.

At the same time, NIC Bank recognizes that most Kenyans lack the immediate cash required to bring their ideas to life.

As a result, NIC Bank has developed asset financing solutions to help its customers realize their ambitions.

Regarding asset finance in Kenya, NIC Bank should put your mind at ease because they have decades of experience.

The following are some of the asset finance prequalifications that must be completed before getting a transaction with NIC Bank:

  • Information about your legal identification
  • All of the contact and address details
  • Information on the item has to be funded, such as whether it’s a new or used automobile.
  • The method of acquiring the asset. Is it better to buy directly or through a dealer?
  • The individual’s name at NIC Bank with whom the customer would want to build an asset financing relationship (typically a NIC employee).
  • The amount of the loan being requested at NIC.

AFTER GIVING THE NECESSARY INFORMATION, the NIC Bank customer requesting a loan to support their asset acquisition will deposit at least 5% of the loan amount.

NIC Bank will handle the asset financing loan and agree on loan repayment terms and time up to this stage.

The following are some of the collateral documents that NIC Bank will accept to close your asset financing loan:

  • Logbooks¬†(for instance, if you want a loan to get another vehicle or piece of land)
  • Salary proof for the last three months (to possibly complete the order for the loan payment payments to be deducted directly from your wages each month).
  • Baking statements for the next six months (To have a better understanding of your credit score history and other financial information deemed essential by NIC Bank.)

2. KCB Bank

Asset finance at KCB aims to help clients develop and upgrade their businesses by acquiring assets.

As a result, KCB aims to provide asset financing to its clients so that they may buy assets that are ready to use right away.

When you use a KCB loan to fund the acquisition of assets, you can be confident that you will not commit any precious cash.

As a result, the following KCB clients have customized asset finance loans to meet their specific company needs:

  • Educational Institutions and Schools
  • Sole proprietors/limited companies
  • Suppliers

Educational Institutions and Schools

When schools and learning institutions apply for KCB asset financing loans, they receive the following advantages:

  1. Convenient procurement refers to purchasing buses and other types of institutional vehicles.
  2. There is no obligation to meet the turn-over criterion.
  3. No down payment or no deposit

The following information must be sent to the KCB asset finance officer by the schools and learning institutions:

  • Minutes from the board of directors or the Annual General Meeting (deemed effective), agreeing to buy a vehicle or property.
  • Written permission from the Ministry of Education or Higher Learning.
  • A Ministry of Education-approved School Registration Certificate.
  • One year’s worth of bank statements
  • Financial estimates for the future.

After confirming all of the aforementioned easy conditions, schools and learning institutions can now submit their asset financing application to KCB Bank.

When applying for funding to purchase institutional cars, KCB requires that the schools and institutions requesting the loan have plans to install an anti-theft device on the vehicle.

Suppliers Interested in KCB Asset Financing

Suppliers occasionally require vehicles to carry out their business objectives successfully.

If a supplier wants to use KCB to finance an asset purchase, they must first create an account to get the asset financing loan.

Limited Companies/Sole Proprietors

KCB’s asset financing solutions also cover individuals who own firms or limited liability organizations.

  • Reliable and flexible ways of obtaining assets, including PSV and personal property, for sole proprietors and limited firms requesting an asset financing loan with KCB.
  • There is a tiny deposit of just 10% for individual automobiles, with a low deposit of only 30% for PSVs.

3. Co-operative Bank

The Cooperative Bank of Kenya is well-known for assisting its customers in purchasing real estate, automobiles, and other assets.

Cooperative Bank of Kenya also offers a one-of-a-kind self-securing loan to purchase mobile assets such as automobiles.

If you have any doubts about your ability to repay that asset financing loan from Cooperative Bank, you can use Cooperative Bank’s Co-op Insurance Financing.

Co-op Insurance Financing allows you to commit to repaying the asset you bought with a Cooperative bank loan.

Such asset loan repayment insurance can be renewed at any time.

The following characteristics distinguish Cooperative Bank asset finance loans:

  • Flexible repayment arrangements
  • Periodic advice on loan insurance services
  • Vehicle asset loans, both new and old.
  • Loans are available in both local and foreign currencies.
  • Financing of various mobile assets, including laptops, computers, printers, sedans, and pickup trucks.

4. I&M Bank

I&M Bank Asset Finance is available to individuals and businesses looking to purchase mobile vehicles or machinery.

Furthermore, I&M asset financing mandates that applicants purchase transportable automobiles and machinery with a traceable serial number, registration, or digital tracking device.

Customers of I&M may expect up to 80% asset finance with a 48-month payback period.

The credit evaluation procedure is crucial in persuading I&M that the asset finance loan applicant is serious about repaying the loan.

The following are some of the benefits of Asset Financing at I&M:

  • an uncomplicated and straightforward asset loan application procedure.
  • Asset finance loans with no collateral
  • Possibility of obtaining a loan for asset financing from a foreign source (import)
  • A loan repayment insurance plan to assist you in repaying your asset financing loan (just in case things go unexpected).
  • I&M has a nationwide network of asset distributors. Obtaining an asset finance loan from a bank may result in a favorable outcome.

5. Stanbic Bank

Stanbic Bank has provided asset finance in Kenya for the past 50 years.

As a result, you have every reason to think Stanbic Bank’s asset financing has stood the test of time.

If you’re searching for an asset finance loan with a 60-month payback duration, Stanbic Bank is the way to go.

Stanbic Bank’s vehicle and machinery asset finance loan alternatives have the following characteristics:

  • Competitive interest rates from both domestic and international banks
  • Asset loans are available in both local and foreign currencies.
  • Loans can be used to purchase new or old mobile vehicles or machinery.
  • A protection plan in case repaying the asset finance debt becomes difficult.
  • Assistance in selecting the appropriate insurance to repay the asset financing loan

6. National Bank

You may count on an asset finance loan from National Bank to help you buy moveable and fixed assets.

The most important aspect of asset financing with National Bank is that the item you buy with your loan becomes collateral for another loan.

The following are some of the asset finance loan aspects to look for at National Bank:

For a New Automobile

  • A ten percent down payment is required.
  • Loans for assets start at 300,000 Kenyan shillings.

The payback duration for a new motor vehicle for business usage is 36 months, whereas the repayment period for a new motor vehicle for personal use is 48 months.

For Used Automobiles

When looking for an asset finance loan from National Bank to purchase a used car, the same loan features as those mentioned above apply.

Except for the vehicle’s maximum age, which should not exceed five years.

7. Family Bank

Look no further than Family Bank for an asset financing loan that may be extended for a long time.

A Family Bank asset finance loan might last anywhere from one to four years. This allows you to choose your payback schedule.

The Family Bank usually does not have a maximum loan requirement.

Most significantly, Family Bank guarantees you’ll get up to 80% of the asset finance loan you need.

Loans for Asset Finance Motor vehicles, construction equipment, industrial plant & machinery, agricultural equipment, Office & IT-based equipment, and specialized equipment are capital assets.

8. Equity Bank

Customers of Equity Bank, often known as the People’s Bank, can get asset and machine financing.

  • The asset you acquire with the loan can be used as collateral against the asset loan at Equity Bank.
  • Loan payback terms are adjustable based on the asset loan applicant’s financial expectations.
  • Asset loan granting is individualized based on the customer’s repayment capabilities.

Conclusion

In Kenya, you should not hurry asset finance. As we can see from the above list of the eight institutions that provide asset financing in Kenya, it is critical to take your time in determining which bank best meets your asset financing needs before deciding on one.

Anne Katana
Anne Katana
I am a student of history. In my free time, I enjoy sharing my passion and experiences with people through blogging. I started this blog to educate and inspire people globally. So Welcome to Nasonga.

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