Co-op Bank pens vehicle financing deal with Toyota Kenya

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.

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.