This is a list of the best asset financing banks in Kenya. Asset financing is an arrangement whereby a financial institution facilitates or assists clients to purchase moveable assets such as motor vehicles, construction, industrial, agricultural equipment and any other types of assets.
Here is a list of the best asset financing banks in Kenya.
1. Co-operative Bank
Co-operative Bank provides financing of all types of moveable assets such as laptops, computers, printers, saloon cars, pickups, tractors, prime movers and school buses.
Features
- Flexible repayment period, with interest rate capped at 13% per annum.
- Financing of all types of moveable assets.
- Competitive pricing in both local and foreign currency.
- Automatic reminder of insurance expiry.
Requirements
- Copies of ID.
- Invoices/ importation documents.
- Copy of KRA PIN.
2. NCBA
NCBA assists clients to acquire new and used movable assets at competitive interests of 13% per annum. The bank’s services are 7x faster than other industry operators. You also get a number of convenient payment options to spread out the costs.
3. Family Bank
Asset finance is available to business account holders and is intended to assist in the acquisition of movable assets such as motor vehicles, heavy earth moving equipment, motorcycles and machinery.
Features
- Receive up to 80% finance for brand new vehicles.
- Interest rate of 13% per annum.
- Up to 70% finance for used commercial and personal vehicles.
- Loan repayment of up to 4 years for brand new vehicles, 3 years for used commercial and personal vehicles and 2 years for used Psvs.
- Up to 60% financing for used PSVs.
- Insurance for vehicles.
- Equipment will remain comprehensive for the period the asset is under finance.
- Repayment period is from 1-4 years.
Requirements
- All used assets must not be older than 10 years at the end of loan expiry.
- Bank statements for a period of 6 months.
- Pre-printed application forms available at all Family Bank branches.
- Copies of ID, passport or KRA PIN.
- Year of manufacture of vehicles should not be more than 12 years at loan expiry.
- Recent AA/ Regent automobile valuers asset valuation for used vehicles.
- Sales agreement.
- Copy of logbook for used vehicles.
4. Absa
Absa makes financing your assets easy by offering solutions such as flexi buy, flexi rent and flexi lease. Interest rate is 13.5% per annum.
Flexi Buy
- You own the asset while you are paying it off.
- The asset belongs to you once it is paid off.
- There is no additional fee to be paid.
- You repay capital plus interest.
- The seller charges full VAT on the cost price plus interest.
Flexi Lease
- You have use of the asset during the lease period.
- You have the option of buying the asset at the end of the lease with no obligation.
- You structure payment to suit your financial needs.
- Choose between monthly, quarterly or annual rental.
- You only pay VAT on each rental when it’s due.
Flexi Rent
- Affordable, fixed monthly payment.
- You do repay proportion of capital.
- Avoid the hassle of ownership.
- The residual value should not be less than 11% of original cost including VAT.
5. KCB Bank
KCB is your partner in ensuring your productivity if your business is one that requires movable assets to operate. The bank’s asset financing helps you to purchase motor vehicles such as trucks, heavy commercial vehicles, school buses, plant machinery, agricultural, medical and construction equipment. Interest rate is 13% per annum.
Requirements
- Duly filled KCB application form.
- Copies of ID and KRA PIN.
- Last 12 months bank statements for non KCB customers.
- Pro-forma invoice from the seller.
- Recent valuation report for used vehicles.
- Copy of logbook ( for used vehicles).
6. National Bank
National Bank offers Shariah-compliant asset financing, particularly Amanah asset financing.
Features
- Flexible repayment period of up to 48 months. Interest rate is 13% per annum.
- Access and benefits from existing dealers promotion schemes.
- Service to expand your trade.
- Personal advisory services tailored to your unique financial needs.
7. Equity Bank
Equity Bank offers loans to customers to facilitate the purchase of business or personal assets such as motor vehicles, machines and equipment.
Features
- Loan amount is based on the customer’s ability to pay.
- Loan period is up to 60 months for second hand vehicles and 120 months for brand new vehicles.
- Financing margin is up to 100%.
Requirements
- 2 copies of ID and PIN certificate.
- Copy of latest payslip.
- Duly signed authorization forms
- Duly completed loan application and appraisal form.
- Valuation report.
- Original logbook
8. I&M Bank
The bank offers asset finance products that cover all forms of business and personal assets which are moveable in nature and identifiable through a serial registration number. This covers motor vehicles, machinery and equipment. Interest rate is 13% per annum.
Features
- Finance of up to 80% .
- Concession for lower deposits and extended loan tenure is available under structured joint dealer/staff car loan schemes.
Applicant Requirements/ SMEs/ Corporates
- Duly completed asset finance application form.
- Pro-forma invoice from the dealer or vendor.
- Company PIN certificate.
- Certificate of incorporation.
- Memorandum and articles of association.
- Latest 6 months bank statement.
- Latest 3 years audited accounts, annual returns and cash flow projections.
- Company/ business profile.
- All applications for second hand units will also require an original market valuer alongside a copy of the vehicle logbook.
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