A Detailed Guide to Equity Bank Car Loan

In today’s article, we will look at Equity bank car loans.

Equity Bank is that bank for the common Mwananchi. Since its founding, this bank has existed only to come up with innovative products that will make Kenyans’ lives better by economically empowering them to achieve their dreams.

One of the ways that Equity Bank has been able to do this is by offering innovative loan products that are affordable and have a flexible repayment period.

It is, therefore, no wonder that its car loan is acclaimed to be one of the most affordable in the Kenyan Market. Let’s discuss in detail Equity Bank’s car loan below.

Equity Bank Car Loan Features

  • Equity bank offers 100% financing to support you in purchasing the car of your dreams.
  • Moreover, the loan repayment period for second-hand cars is 60 months, while that for new cars is 120 months.
  • The car loan is extended to you based on your ability to pay.

How to be eligible for an Equity Bank car loan?

There are various preliminary requirements to meet to qualify for the equity bank car loan. These include:

  • An introduction letter from your employer confirming employment or appointment
  • Three original copies of your payslip
  • 2 copies of the KRA pin and ID
  • Fully completed and signed valuation forms
  • The sales agreement
  • For second-hand vehicles, present a valuation report as well as the original logbook.
  • Ensure that your employer has an MOU with Equity Bank and can deduct checkoffs straight to the bank.

Should I finance my car via dealership or Bank?

Early last year, Equity bank partnered with Toyota Kenya to provide financing for individuals who would like to purchase cars.

Despite this, various other dealerships in Kenya offer car loan financing with other banks to facilitate the acquisition of a car.

Which is the best way to refinance your acquisition of a car is highly debatable. Say by using the dealership way, you can get a grace period before starting to repay your loan but at a higher interest rate.

On the other hand, a bank says, Equity bank car loan, maybe at a slightly lower interest rate and over a longer period of time. Therefore, it all boils down to whether you have a good credit rating or not.

Simon Mwangi
Simon Mwangi
As a freelance writer with a background in banking and accounting, Simon has the financial know-how to produce quality content on various topics. His experience gives him a strong foundation in understanding complex financial concepts and communicating them in an easy-to-understand way. Follow him on Linkedin

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