NCBA to finance up to 95% of commercial and personal vehicles sold by Simba Corp

by Enock Bett · June 30, 2021

NCBA Bank Kenya PLC and motor vehicle company, Simba Corporation have struck an asset finance deal that will see the lender finance up to 95% of all commercial and personal vehicles sold by Simba Corp. The two partners are in a bid to ease the financial load in the current business environment by discounting new and repeat customers with loan facility fees. They note that the Small and Medium Enterprise sectors will be the biggest beneficiaries of this financing deal which is intended to run for six months.

“This asset finance deal comes at the right time during this pandemic period when businesses are slowly recovering from the ripple effects. At NCBA, we are on a continuous journey to forge partnerships that are beneficial to our customers. The businesses that take up this deal will also benefit from the discounted all-inclusive insurance package offered by NCBA Insurance Agency (NCBA IA),” said Lennox Mugambi, Group Director, Asset Finance and Business Solutions.

The partnership will offer customers a 13% interest rate per annum on reducing balance over a maximum tenor of 60 months. In addition, customers will receive a grace period of 60 days after the vehicle release date before loan repayment.

“The insurance package provides swift and seamless settlement of loan repayment for grounded vehicles under repair and a back to dealer agreement for all accidental/partial theft cases including spare tyre. It also includes goods in transit coverage; unlimited third party liability claims with nil excess and accommodates personal accident claims,” added Mugambi.

Mr. Mugambi, said while the current economic environment is still fluid and continues to change on a daily basis some for better and others for tougher times, the lender’s top highest priority and commitment is to sustain its customers’ businesses to continue being unwavering. On his part, Naresh Leekha, Simba Corp Managing Director, Motors noted that financing has been a key driver for businesses to take up assets that will help them scale up their production and recover after a period of suppressed economic activity due to Covid-19.

“We envision this partnership with NCBA will help our customers get the vehicles they need for their businesses. The 60 day repayment holiday will also enable them to manage their cash flows,” said Naresh Leekha.

The partnership takes advantage of the relief from logistical disruptions experienced by new vehicle dealers, including the local franchise holder for Mitsubishi and Fuso, in Q3 previously caused by the Covid-19 pandemic. Simba Corp currently sells world-class car brands including- Proton, Mitsubishi, Fuso, Mahindra, and Same Tractors.