Co-operative Bank has penned a deal with Toyota Kenya that will enable the bank's clients to buy new commercial and personal cars from Toyota Kenya.

The agreement means Co-op customers will be able to purchase new vehicles from Toyota Kenya showrooms with a down payment of as low as 5 per cent.

The scheme seeking to boost individuals and businesses to recover from adverse effects of Covid-19, will see the bank finance up to 95 per cent of the loan cost.

In the agreement, the bank loan takers will also enjoy a grace period of 60 days before they commence to pay back the loan taken.

“Repayment of the loan is for a long period of up to 60-months. Co-op Bank will also extend a Sh500,000 working capital loan without additional security - to the successful applicants of the Toyota Vehicles,” said Co-op Bank in a statement.

Fleet customers will benefit from the new deal under the Co-op Fleet Africa, the bank group’s leasing arm, which will enable them to acquire more units.

Arvinder Reel, Toyota Kenya Managing Director, said the pandemic was an eye-opener hence the need by financial institutions to back key sectors of the economy.

“Our partnership with Co-op Bank goes beyond just the sale of the vehicles. We are saying this is an improved partnership since customers will also receive professional training for their drivers,” said Reel.

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The programme is accessible to Co-op customers seeking to directly acquire or lease vehicles and the bank’s interest rates will remain at 13 per cent.