This archive report was first published on 28 August 2019.
On August 28, 2019, Co-op Bank and Isuzu launched a flexible loan repayment system for Small and Medium Enterprises (SMEs) in Kenya.
The new financing scheme allows SMEs to repay loans in daily installments, starting from KSh 2,577 for a brand new Isuzu D-Max.
Unlike traditional loan repayment formulas, this new model enables clients to factor loan repayments into their daily expenditure.
As part of the deal, customers are given a 60-day repayment holiday to observe progress of their ventures and prepare to start paying their loans.
Co-op Bank will also provide a KSh 300,000 working capital repayable in 12 months.
A reasonably priced comprehensive insurance package, priced at 4.75% of the vehicle, is also included in the offer. The package insures against political violence and terrorism.
Insurance Premium Finance is also available for those who wish to pay premiums in easy installments.
Co-op Bank Director for Retail and Business Banking, Arthur Muchangi, urged SMEs to embrace the vehicle financing scheme, saying it was tailored to address hurdles most of them faced when trying to secure business loans.
