Car loans

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:

1. Banks
2. Car dealers
3. Non-bank institutions 
4. Other partnerships 

List of Banks for Car Loan Companies in Kenya

There are different banks that offer car loans in kenya and they include:

KCB bank

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.

Equity bank 

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. 

NIC bank 

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

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:

1. 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.

2. 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

3.  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:

1. Ngao Credit Limited – Kenya Nairobi, Mombasa, Nakuru, Eldoret Kitengela, Kenya.
2. MOGO – Prestige Plaza Branch Ngong Road, Kenya.
3. Emergency Loans Kenya Ltd- Nairobi, Kenya. 
4. Mwananchi Credit Limited – EcoBank Towers 10th Floor, Kenya.
5. ASL Credit Ltd – 84 Muthithi Road, Nairobi, Kenya
6. Kifedha Limited- Murang’a Road, Nairobi, Kenya.
7. Toyotsu Auto Mart – Nairobi, Kenya.
8. Platinum Credit Ltd, Satellite Office Dagoretti Branch- Wanyee Rd, Nairobi, Kenya.
9. Jijenge Credit Limited – 6th Floor Right Wing Town House, Kenya.
10. ECLOF Kenya- Nairobi, Kenya.

General Car Loans Company’s Requirements 

The general requirements needed by different car loans in Kenya include:

1. Application form
2. Six months bank statement 
3. Copies of National ID and pin
4. For used cars, copies of logbook and valuation reports would be needed
5. Passport photograph
6. Bank with the financial institution or have an account with them
7. Copy of your payslip
8. Sales Agreement 
9. Proof of steady source of income
10. 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:

1. The lender or bank must approve and validate the insurance company giving the vehicle policy
2. Often times it is required the car has an installed tracking device 
3. Some banks and lenders prefer the car not to be more than 8 years old
4. The car must have an insurance policy 
5. 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:

1. Interest rates 
2. repayment duration
3. Financing amount
4. Insurances covers or clauses
5. Other attached fees and charges
6. 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:

1. Choose the cheap car loan amount you can pay
2.  Go for the car with the best terms and conditions 
3. Settle for the best. Understand every bit of the contract.
4. Be smart enough and use your findings well.

Conclusion

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.

In Kenya, there are several financial institutions and lenders that provide Tuk-tuk loans to aspiring riders and business owners. 

It is essential to research and compare the terms, requirements, interest rates, and repayment options offered by different lenders before deciding to go for Tuk-tuk loans. 

Additionally, consider factors such as customer reviews, reputation, and customer service when selecting a Tuk-tuk loan provider.

What are Tuk-tuk Loans? 

Tuk-tuk loans in Kenya allow individuals to own a Tuk-tuk (three-wheeled motorised vehicle) through a loan arrangement. 

The loan lenders give out the funds to purchase or lease Tuk-tuks, allowing people to enter or expand their operations in the transportation sector.

Majority of lenders request a deposit which averages ksh 50,000 to be provided by the borrower.

On the borrower paying the deposit to the lender, a rider will be given the Tuk tuk right away and then pay monthly installments as signed and agreed.

How Much Does a Tuk-tuk Cost?

Tuk-tuk loans in Kenya have no specific cost amount but depend on what each lender collects as an initial deposit price. Most lenders ask for a deposit of Ksh 50,000 or even more.

Some banks can finance up to 70% to 90% of the Tuk-tuk price. It depends on the policy of each financial institution in Kenya.

How to Get Tuk-tuk Loans in Kenya

To get a Tuk-tuk loan in Kenya, you need to follow the guidelines below:

• First conduct background research on the lender.
• Prepare your necessary and additional documents and compile other personal information.
• Visit the lender’s closest branch and pick an application form
• Fill out the form with honesty and don’t forget any information
• Submit the form and other necessary documents.
• Wait for the evaluation and Approval Process.
• Once approved, you will be called to come pick up your Tuk-tuk. Or the bank will pay the agreed financing amount into your account.

Best Tuk tuk Loans in Kenya

There are a lot of Tuk-tuk loan providers but the best you can find in Kenya are: 

1. Mogo Tuk-tuk Loans 

Mogo Tuk-tuk loan is one of the best Tuk-tuk loans in Kenya as they specialize in that type of credit. To access this loan, you don’t need to stress, just visit the nearest Mogo outlet near you and apply.

A borrower with a good credit score can deposit ksh 50,000 and ride home with a brand new Tuk tuk of his choice, provided it’s in stock.

2. Watu Credit Tuk Tuk Loans 

Watu Africa which was formerly known as Watu Credit is also one of the popular Tuk-tuk Loans providers in Kenya.

To access the Watu Credit Tuk tuk loan, visit the nearest Watu Credit near you and apply.

Note that you will be asked to submit some documents and also pay a deposit before getting the Tuk-tuk.

3. Car and General Tuk Tuk Loan 

Car and General are also providers of Tuk tuk loans in Kenya. Visit the car and general office nearest to you in Kenya and apply for the loans.

Some of the other popular Tuk tuk loans in Kenya come from the following lenders; 

4. KCB Bank Tuk tuk Loans 

KCB Bank offers Tuk tuk loans as part of their “Get a Loan for a Small Business” program. With KCB Bank, you can get up to 70% financing of the purchase price, with a maximum of KES 5,000,000, plus insurance if needed. 

They also provide flexible repayment terms, allowing a repayment period of up to 24 months for Tuk tuks and 12 months for motorbikes. 

Their requirements are subject to change, ensure you visit their website or office for more inquiries.

5. JoyInc Tuk Tuk Loans 

JoyInc is a financing company that provides Tuk tuk loans in Kenya. To become a Tuk tuk owner with JoyInc, you can make a down payment of Kshs 50,000 and become a proud owner within 2 hours.

6. Equity Bank Tuk Tuk Loans 

Equity Bank, one of the largest banks in Kenya, offers Tuk tuk loans to both individuals and groups. They provide flexible loan terms and competitive interest rates to support your Tuk tuk ownership.

Other Tuk-tuk Loan Providers in Kenya

Some of the other Tuk tuk Loan providers in Kenya are:

• Cooperative Bank Tuk tuk Loans.
• Mwananchi Credit Tuk tuk Loans 
• Premier Credit Tuk tuk Loans 
• Faulu Tuk tuk Loans 

Requirements for Tuk tuk Loans in Kenya

To be eligible for Tuk-tuk Loan, the lender needs potential borrowers to meet the following requirements:

• Provide a 3-month active account statement with any financial or business institution.
• Get a proforma invoice from Tuk Tuk dealers.
• A valid driving license of the borrower/rider.
• Show a document proving your ability to repay the loan.
• Make an initial deposit of up to ksh 50,000 and above the lender. However, the banking system expects you to meet up to 30% of the Tuk-tuk cost and they will finance the 70%.
• A guarantor who holds an account with the lender by the KCB account holder where a log book is a help on simple deposit.
• A 6 months banking history with the lender or three months of group savings.

Note: we advise you to check for more requirements on the lender’s website before going for the loan. Optionally, you can contact their customer service or fill out the form online.

Conclusion

Some of the lenders you can consider while looking for a Tuk-tuk loan are:

1. Mogo Tuk-tuk loan
2. KCB Bank Tuk-tuk loan
3. Watu Africa Tuk-tuk loan
4. Equity Bank Tuk-tuk loan

Please note that the information provided is based on available sources, and it’s recommended to directly contact the lenders or visit their official websites for the most accurate and up-to-date information.

Zero-deposit car finance in Kenya can be beneficial for those who may not have the immediate cash needed to make a down payment or prefer to use their savings for other needs.

It is offered by many lenders and companies in Kenya but it is recommended to research and compare available deals to find the most suitable offers that fits your financial situation and requirements.

What is Zero Deposit Car Finance?

Zero deposit car finance is a type of financing option that permits people to purchase a car without having to make an upfront payment/deposit. 

In this type of arrangement, the lender provides the full amount of the car and the borrower starts to repay the loan without making an initial payment.

Can You Get a Car on Zero Finance?

Yes, anybody with a good credit score and good income in Kenya can get a car with zero finance options. They also must meet the requirements and conditions for the bank loan.

However, it is important to note that going for zero-deposit car finance may result in higher monthly repayments or interest rates compared to other loans with a down payment.

The reason for this is that the absence of a deposit may increase the risk for lenders, leading to slightly higher costs for borrowers.

How to Buy a Car on Loan in Kenya

To get a car on loan in Kenya, follow the following steps:

1. First, go for the right dealer who has a relationship with a bank.
2. Meet your existing bank and let them know.
3. Know what you are eligible for or check out your car’s eligibility.
4. Get your good credit score records ready.
5. Go for the right amount.
6. Fill out and complete the lender’s car loan application. You need to show all necessary personal and financial details.
7. Provide other required documents and submit them.
8. Wait to have the loan application approved

Check out the different car loan companies in Kenya.

Cheapest Car Loans in Kenya

1. 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 36 months.

and cheapest car loans in Kenya.

2. Mhasibu Sacco 

This loan company financed 90% of the value of the car with an interest of 1.125% and a duration of 48 months.

3. 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%

4. Toyota Kenya 

They provide car loans at a rate of 18% with a duration of 5 years. They also partner with Tsusho Capitals to serve their customers effectively. 

5. Cheki Kenya 

Cheki Kenya partnered with asset financiers to help customers get their dream cars.

6. KCB Bank

They cover 90% of the value of the car with a five-year 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.

7. Equity bank 

They have flexible repayment car loan terms and cover 70% of the value of the car. Standard Chartered Bank of Kenya: They finance 90% of the value of the car for new cars and 80% for old cars.

Equity bank also finances your car tracker or anti-theft and insurance and gives a maximum of Ksh. 10 million for new cars and Ksh. 5 million for used cars. Moreso, gross salary earners of ksh. 75000 might also need a car loan hence they have a salary account with the bank.

8. 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 in partnership with Japanese exporters and World Nari to serve their customers better.

9. Stanbic bank Kenya

Stanbic Bank renders car loans with a maximum of 48 months. The bank owns the car till you make the last repayment. 

10. NIC bank 

The minimum car loan amount with NIC bank is Ksh. 300,000 with a repayment period of 72 months. Additionally, they offer car loans to their salary customers with up to 90% finance on the value of the car.

Conclusion

Anybody can benefit from zero deposit car finance in Kenya as long as they have a good credit limit, a good income, and meet all the requirements.

Please, also note that the terms and conditions, interest rates, and eligibility criteria for zero-deposit car finance may vary depending on the lender. 

Therefore, it is recommended to contact the specific lender or financial institution directly for detailed information and to address or clarify any specific concerns or questions you may have.