This archive report was first published on 5 May 2021.
On May 5, 2021, NCBA Bank Kenya PLC introduced a logbook loan product to help Kenyan businesses access much-needed capital.
The new financing solution allows customers to borrow funds against a vehicle they already own, provided it is not under any financing. This means customers can receive feedback on their application within 12 hours.
Under the logbook loan product, customers can borrow a minimum of Sh100,000 and a maximum amount determined by their ability to pay, subject to a cap of 50% of the vehicle's value.
According to Lennox Mugambi, Group Director of Asset Finance and Business Solutions at NCBA Bank, the logbook loan product is designed to support businesses struggling with the aftermath of the COVID-19 pandemic.
“Businesses are facing very difficult times especially due to COVID 19 and so we see this financing solution as an opportunity to support businesses that are still grappling with the after-shocks of the pandemic,” Mugambi said.
NCBA Bank aims to support Kenyans, both customers and non-customers, by encouraging them to take advantage of the logbook loan product to restore their livelihoods, grow their businesses, and support their families.
Logbook-based financing allows customers to tap into the value of their vehicles to access cash quickly and under flexible terms. Repayment cycles can be monthly or seasonal, based on the customer's income cycle, making it a viable option for emergency financing needs.
