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