Asset Financing in Kenya: The Definitive Guide [2019]

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Asset Financing In Kenya is the only bridge between dreams and reality for many.

However, many Kenyans find it hard to achieve their dreams of owning a property like vehicles.

And that is why today’s article seeks to empower you with tips on how the eight leading financial institutions in Kenya finance dreams to own property or vehicles become a reality.

What is asset financing in Kenya?

According to Investopedia; Asset financing refers to the use of a company’s balance sheet assets, including short-term investments, inventory and accounts receivable, to borrow money or get a loan. The company borrowing the funds must provide the lender with a security interest in the assets.

Asset Financing Banks in Kenya

  1. NIC Bank
  2. KCB
  3. Cooperative Bank
  4. I &M Bank
  5. Stan Bic Bank
  6. National Bank
  7. Family Bank
  8. Equity Bank

Let’s get into the details

1. NIC Bank

NIC Bank understands that Kenyans have big dreams.

At the same time, NIC Bank does realise that most Kenyans don’t have the immediate needed cash to finance their dreams to fruition.

As such, NIC Bank has worked on asset financing packages to ensure that its customers can enable their dreams.

When it comes to asset financing in Kenya, you should feel relaxed at NIC Bank because they have decades of experience in this field.

Some of the asset financing prequalifications that ought to be met before securing a deal at NIC Bank include applicants ought to provide:

  • Legal identity details
  • All the contact and address information
  • Details of the asset that needs to be financed, e.g., is it a new or used vehicle?
  • Method of purchasing the asset. Is the process of buying direct or through a dealer?
  • Point of the person at NIC Bank (usually an employee of NIC) that the customer would like to develop an asset financing relationship with.
  • Specific loan amount being applied for at NIC.

Upon providing the above details, the NIC Bank customer seeking a loan to finance their asset acquisition will have to deposit at least 5% of the loan amount.

Up to this point, NIC Bank will process the asset financing loan and agree on loan repayment terms and period.

Some of the collateral documents that NIC Bank accepts towards sealing your asset financing loan include:

  • Log Books ( for instance if you want a loan to get another vehicle or piece of land )
  • 3 Months payslip (to possibly process the order of deducting the loan payment contributions every month direct from your salary.
  • 6 Month baking statements (To understand your credit score history among other banking details as perceived necessary by NIC Bank).

Do you need an emergency loan?

2. KCB Bank

KCB’s Asset financing goal is to expand and modernise the business of its customers by acquiring assets.

As such, KBC endeavours to offer asset financing for its customers to acquire immediate for use assets.

When you finance the acquiring of assets with a loan from KCB, you’re assured not committing valuable capital in the entire process.

That being said, the following clients with KCB have designed asset financing loans to suit their business needs:

  • Schools and learning Institutions
  • Suppliers
  • Sole proprietors/ Limited Companies

Schools And Learning Institution

Whenever schools and learning institutions are applying for asset financing loans from KCB, they enjoy the following benefits:

  1. Convenient procurement means to acquire buses and other institutional vehicles.
  2. No subjection to providing the turn-over criteria.
  3. Zero deposit or down payment

However, the schools and learning institutions must provide the following details to KCB asset financing officer:

  • Last minutes from the board of directors or the Annual General Meeting (as deemed effective), agreeing to purchase an asset like vehicle or land.
  • Written consent from the Ministry Of Higher Learning or Education.
  • School Registration Certificate approved by the Ministry of Education.
  • One year’s banking statements.
  • Future Financial projections.

After certifying all the above simple criteria, schools and learning institutions can now go ahead and submit their asset financing application with KCB Bank.

In the case of financing to buy institutional vehicles, KCB demands that the loan applying schools and institutions must have plans to fit an anti-theft device on the same.

Suppliers Applying for Asset Financing with KCB

Suppliers sometimes do need vehicles to conduct their business intentions successfully.

For any supplier wishing to finance their asset acquisition with KCB, then they must open an account to receive the asset financing loan specifically.

Sole proprietors/Limited Companies

Individuals conducting businesses or limited companies too have been covered with KCB’s asset financing products.

The Benefits That Sole proprietors and limited companies applying for an asset financing loan with KCB include:

  • Reliable and flexible means of acquiring assets, e.g. PSV and personal
  • Low deposit of only 30% for PSVs
  • A small deposit of only 10% for private vehicles.

3. Cooperative Bank

Cooperative Bank of Kenya has been famous for enabling its customers to acquire property, cars, among other assets.

There is also a unique self-securing loan product at Cooperative Bank of Kenya for acquiring moveable assets like vehicles.

Just in case you doubt how you’re going to be able to pay back that asset finance loan with Cooperative Bank, then you’re covered by Cooperative Bank’s Co-op Insurance Financing.

Co-op Insurance Financing enables you to commit to paying back the asset you purchased with a loan from Cooperative bank.

Such an asset loan repayment insurance can be renewed from time to time.

The following attributes make Cooperative Bank asset financing loans unique:

  • Flexible repayment terms
  • Advice on loan insurance service from time to time
  • Asset loans for both new and used vehicles.
  • Loans offered in both foreign and international currencies.
  • Financing of multiple moveable assets such as laptops, computers, printers, saloon cars, pickups.

5. I &M Bank Asset Financing In Kenya

I&M Bank Asset Finance covers both individual and companies set to buy moveable vehicles or machines

Additionally, asset financing at I & M does require that the applicants do buy moveable cars and machines that have a traceable serial number, registration or digital tracking device.

I & M, customers are assured of up to 80% asset financing that is to be paid in 48 months.

The credit evaluation process is an essential step towards convincing I & M that the asset financing loan applicant is committed to repaying the loan.

Different attributes for Asset Financing AT I & M include:

  • Easy and straight forward asset loan application process.
  • Self-secured asset financing loans
  • A chance to get a loan to asset finance from abroad (import)
  • An insurance product to help you repay your asset finance loan (just in case things go unexpected).
  • I & M has a network of asset distributors countrywide. Getting an asset financing loan with I & M could see you get a good deal to buy an asset.

6. Stanbic Bank

Stanbic Bank has been offering asset financing for the last 50 years in Kenya.

Hence you have every reason to believe asset financing with Stanbic Bank has passed the test of time.

For that matter, if you’re looking towards an asset financing loan that offers 60 months repayment period, then go for Stanbic Bank.

The vehicle and machinery asset financing loan options offered at Stanbic Bank bear the following characteristics:

  • Completive interest rates with both local and foreign banks
  • Asset loans can be issued in both domestic and international currency
  • Loans can cover the acquisition of both New or used moveable vehicles or machines.
  • An insurance package just in case repaying the asset financing loan taken becomes hard
  • Advice on choosing the right insurance for the repaying the asset financing loan

7. National Bank Asset Financing In Kenya

At National Bank, you’re assured of securing an asset financing loan to acquire movable and capital assets.

The significant part about asset financing with National Bank is that the asset you acquire with you loan becomes the collateral against the same loan.

Some of the asset financing loan features to look out for at National Bank include:

For New Motor vehicle

  • A minimum of 10% down payment.
  • Asset loans start from 300,000 Kenya shillings.
  • If the new motor vehicle is for commercial use, the repayment period is 36 months.
  • While if the new motor vehicle is for personal use, then the repayment period is 48 months.

For Used Motor vehicle

When sourcing for an asset financing loan from National Bank to buy a used motor vehicle, the same loan characteristics, as those of new cars as highlighted above remain.

Except for the Maximum age of the vehicle should not exceed five years.

Family Bank Asset Financing In Kenya

If you’re looking for an asset finance loan that can extend for long then look further than Family Bank.

Family Bank asset financing loan can extend between 1 to 4 years. This gives you flexible repayment periods.

Usually, the Family Bank has no maximum Loan Requirement.

Most importantly, Family Bank promises to give you up to 80 per cent of the asset financing loan you’re looking for.

Asset Finance Loans Capital assets include but are not limited to, motor vehicles, construction equipment, industrial plant & machinery, agricultural equipment, Office & IT based equipment and specialised.

Equity Bank Asset Financing In Kenya

Equity Bank, also referred to as the people’s bank does offer asset and machine financing to its customers.

Some of the Equity Bank asset financing benefits include:

  • The asset you buy with the loan can turn to be the collateral against the asset loan at Equity Bank.
  • Faster asset loan processing and awarding.
  • Loan Repayment terms are flexible based on the financial projections of the asset loan applicant.
  • Asset Loan awarding is personalised based on the customer’s repayment ability.

From My Desk

Asset financing in Kenya should not be rushed.

As we have seen from the list of the eight institutions offering asset financing in Kenya above, it is essential to take your time before getting to know which bank best serves your asset financing needs before settling for one.

You might get short term financing from loan apps in Kenya

And when you get that asset finance loan after reading this article, please be sure to send us an email at hello@kanjwa.com and share with us your asset financing success.

All the best.

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