General Motors East Africa & NIC Bank offer 60-day Grace Period in Asset Finance Deal
Leading vehicle manufacturer General Motors East Africa (GMEA) and NIC Bank of Kenya, have today announced an asset financing partnership that will see corporates, SMEs and individual customers access financing on Isuzu vehicles at a low interest rate of 13% for up to a period of 6 years.
The partnership, which was announced at the GMEA offices, will also see Isuzu customers receive a 60-day grace period on payments and a one-year insurance cover through Fidelity Insurance. This cover includes general cartage and excess protection for one year for all Isuzu N-Series trucks, FRR trucks and both double and single cab Dmax pickups.
While making her remarks at the signing, GMEA Managing Director Rita Kavashe, noted that the partnership has made it easier for any customer looking to purchase Isuzu vehicles for their business or personal use.
“There is no doubt that several different challenges exist when it comes to accessing finance to acquire assets. This has hindered many businesses in delivering quality services and potential growth. As such, Isuzu’s unique partnership with NIC Bank seeks to make it easier for individuals and business organizations to purchase vehicles for their business and individual needs,” said Rita.
Rita further added that the loan interest rate, which has been reduced by 1%, will see customers who purchase heavy commercial trucks make substantial savings on their repayments. She further noted that the 60-day grace period will make it easier for all Isuzu customers to comfortably pay for their newly acquired vehicles.
“Over 90% of banks in the country require that customers taking up asset financing begin immediate payments of the said asset. However, through this partnership, our customers will be able to enjoy a 60-day grace period window to comfortably source payment for their vehicle,” said Rita.
The 60-day grace period, which is a new deal for Isuzu customers, will give businesses and individual customers the much needed window to design a proper payment plan, deal with cash flow problems and ease cash burdens.
Representing NIC Bank at the sign off, NIC Bank Group Managing Director John Gachora, echoed Rita’s comments terming the partnership with GMEA a game changer in the industry.
“In the past, most business and individuals obtained secured loans or commercial loans to purchase the equipment they need. This led to constrained cash flows for organizations and individuals, which could have been put to good use,” said John Gachora.
He further added, “Our partnership will see Isuzu customers receive one of the lowest interest rates at 13%, the longest tenor of up to 6 years and a first ever 60-day grace period offer on their choice of Isuzu vehicles. Our partnership is aimed at benefiting customers and realizing their goals, as businesses or individuals.”
The new asset financing package is set to commence on 1st July this year as a way of enabling customers have peace of mind and acquire Isuzu vehicles affordably during this challenging economic season in the country.