Owning a car in Kenya is turning to be a basic necessity. It helps take people to work on time and also have a standby ride to attend to emergencies. That you cannot afford a car doesn’t mean you can’t own it.
Instead of worrying about how much money you do not have to purchase a car, think of sources that will give you the best deal as there are different car loan companies in Kenya that will give you the best deal.
As we evaluate loan companies for a car loan, understand the cost, benefits and implications. Definitely you will enjoy it.
Let us discuss car loan companies in Kenya
What You Need to Know About Car Loan Companies in Kenya
Car loan companies are agencies or financial institutions that offer funds that are used in purchasing a new or used car. Oftentimes, these companies could be car dealers, banks, and non-bank institutions. In some cases, you may be able to obtain a car with zero deposit.
They have terms and conditions guiding them which must be kept before you can access the loans. They have fees and procedures to repay and recuperate bad debts.
In addition, some of these car loans companies partner with foreign and local investors to serve their customers better.
Types of Car Loan Companies in Kenya
The different kinds of car loan companies in Kenya are:
List of Banks for Car Loan Companies in Kenya
There are different banks that offer car loans in kenya and they include:
They cover 90% of the value of the car with a five years loan term and 80% for used cars with a 4 year loan period. They also have 100% financing for a period of 54 months. It all depends on what you need.
They have flexible repayment car loan terms and cover 70% of the value of the car. Standard Chartered bank of Kenya: They finance 90% value of the car for new cars and 80% for old cars.
They also finance your car tracker or anti-theft and insurance and give a maximum of Ksh. 10million for new cars and Ksh. 5million for used cars. Moreso, gross salary earners of ksh. 75000 can also go for a car loan hence they have a salary account with the bank.
I & M bank Kenya
I&M takes up to 80% of the value of the car for new cars and 70% for used cars. They are into partnership with Japanese exporters and world Nari to serve their customers better.
Stanbic bank Kenya
Stanbic Bank renders car loans with a maximum of 48months. The bank owns the car till you make the last repayment.
The minimum car loan amount with NIC bank is Ksh. 300,000 with a repayment period if 72months. Additionally, they offer car loans to their salary customers with up to 90% finance on the value of the car.
Bank of Africa Kenya
They offer competitive interest work 50% and 80% finance of the value of the car. They also have a repayment duration of 12 to 48 months. Bank of Africa keeps the car as a security for the loan.
Barclays Bank of Kenya
They operate an asset finance scheme that covers Islamic bank arm names La Riba car finance.
NCBA Bank provides car loans to individuals, organizations and companies. They can offer a car loan ranging from ksh, 10,000 to ksh. 10 million with competitive interest rate.
Their loan repayment plan is flexible.Besides these great features, they have branches in different places in Kenya making it more accessible by customers.
Standard Chartered Bank Car Loan
The Standard Chartered Bank is one of the car financing companies in Kenya with global presence. Their quick car loan processing time has attracted more customers to them over the years.
They offer car loans to individuals, corporations and SMEs with competitive interest rates and a flexible loan repayment of up to 60 months.
Faulu Microfinance Bank
Faulu is one of the leading DTM in Kenya that offers car loans in Kenya. Individuals and SMEs can get up to ksh. 50,000 to ksh. 5 million with 48 months repayment period.
List of Car Dealership Loan Companies in Kenya
1. Toyota Kenya
They provide care loans at a rate of 18% with a duration of 5 years. They are also into partnership with Tsusho Capitals to serve their customers effectively.
2. Cheki Kenya
Cheki Kenya partnered with asset financiers to help customers get their dream cars.
Lists of Non-Bank Financial Car Loan Companies in Kenya
The list of non-bank financial institutions for car loans in Kenya are:
- AMREF SACCO
They partner with import car dealers for both new and used cars by financing 80% of the car value and an interest of 1.5% on reducing the balance method. They have a loan term of 36months.
- Mhasibu Sacco
This loan company finance 90% of the value of the car with an interest of 1.125% and a duration period of 48months
- Springboard Capital:
This loan company also offers car loans in Kenya.
List of Other Partnerships Car Loan Companies in Kenya
Sidian partnership with Uber: They advance car loans to drivers using their loan app and driving for Uber. The drivers determine the finance rate with an interest rate of 10.5%
You can also check out some private money lenders in Nairobi, Kenya
List of Other Car Loans Companies in Kenya that You Need to Take Note of
There are numerous number of lenders and banks that offer car and logbook loans in Kenya and they include:
- Ngao Credit Limited – Kenya Nairobi, Mombasa, Nakuru, Eldoret Kitengela, Kenya.
- MOGO – Prestige Plaza Branch Ngong Road, Kenya.
- Emergency Loans Kenya Ltd- Nairobi, Kenya.
- Mwananchi Credit Limited – EcoBank Towers 10th Floor, Kenya.
- ASL Credit Ltd – 84 Muthithi Road, Nairobi, Kenya
- Kifedha Limited- Murang’a Road, Nairobi, Kenya.
- Toyotsu Auto Mart – Nairobi, Kenya.
- Platinum Credit Ltd, Satellite Office Dagoretti Branch- Wanyee Rd, Nairobi, Kenya.
- Jijenge Credit Limited – 6th Floor Right Wing Town House, Kenya.
- ECLOF Kenya- Nairobi, Kenya.
General Car Loans Company’s Requirements
The general requirements needed by different car loans in Kenya include:
- Application form
- Six months bank statement
- Copies of National ID and pin
- For used cars, copies of logbook and valuation reports would be needed
- Passport photograph
- Bank with the financial institution or have an account with them
- Copy of your payslip
- Sales Agreement
- Proof of steady source of income
- For salaried workers, have your employer sign fees documents
General Terms And Conditions Governing Car Loan Companies in Kenya
The general terms and conditions guiding loan companies in Kenya include:
- The lender or bank must approve and validate the insurance company giving the vehicle policy
- Often times it is required the car has an installed tracking device
- Some banks and lenders prefer the car not to be more than 8 years old
- The car must have an insurance policy
- The bank owns the car till the borrower makes the last repayment.
Factors to Consider Before Choosing a Car Loan Company in Kenya
In considering which car loan company to choose in Kenya, there are factors to look out for, they are:
- Interest rates
- repayment duration
- Financing amount
- Insurances covers or clauses
- Other attached fees and charges
- Credit score for the car loan if needed
Things to do When You Have Chosen a Car Loan Company
After choosing a particular car loan company, there are various things you need to be careful about. You need to be also aware of all these things. They are:
- Choose the cheap car loan amount you can pay
- Go for the car with the best terms and conditions
- Settle for the best. Understand every bit of the contract.
- Be smart enough and use your findings well.
There are numerous car loan companies in Kenya with good terms and conditions guiding. Do your findings well and learn the requirements and eligibility.
When you are good to go, choose the car you can pay for. Know your repayment schedule and make payment as required to fully take ownership of your dream car.