NAIROBI, Kenya, Sep 19 – NIC Bank has partnered with Isuzu East Africa to launch an asset financing program targeting small scale traders.
Dubbed “Zero Disruption” the product will allow customers access loans enhanced at no additional cost through insurance coverage for Isuzu trucks and pick-up for SME up to Sh300,000 per month for two months allowing their normal business to resume.
Isuzu East Africa Managing Director Rita Kavashe said the initiative is aimed at providing relief to customers who suffer short term disruption in their business.
“We have interacted with Isuzu Customers who have been affected by temporary situations including accidents or loss of goods in transit thus introducing a program that gives customers a window to fix the problem as they continue servicing their loans,” said Kavashe.
The “Zero Disruption” program applies to Isuzu SME customers who have purchased their trucks or pick-ups through NIC Bank credit facilities.
Under the program, Isuzu customers get up to 95 percent financing for the purchase of new vehicles, a 60-day grace period from the onset and a loan payment period of up to 5-years.
The finance initiative will also allow customers to enjoy damage or loss of goods covered up to Sh1 million.
Additionally, the package also has a personal accident cover for driver and loader of up to Sh250,000 each. This mitigation is expected to give customers time to find alternatives and continue paying for their vehicles without the risk of heavy penalties or repossession.
NIC Bank’s Group Managing Director John Gachora also added that the bank remains committed to supporting the growth of the SME sector, which contributes to more than 60 percent of the country’s GDP and more than 80 percent of all new jobs.
“We believe a vibrant SME sector will have significant potential to contribute to the future growth of Kenya and support the realization of the Big 4 agenda,” commented Gachora.
The new asset financing program is set to commence immediately.
This is not the first time a bank has partnered to ensure SME’s get the support they need to boost their business.
In May, Central Bank of Kenya partnered with Commercial Bank of Africa, the Cooperative Bank of Kenya, Diamond Trust Bank Kenya Limited, KCB Bank Limited and NIC Group launched supporting small and medium enterprises will be allowed to access loans ranging from Sh30,000 to Sh250,000.
The customers access the loans through their mobile phones after being scored and advised of their credit limit which should be paid in a period of 1-12 months at an interest of 9 percent per annum.