Automotive assembler giant General Motors East Africa and lender NIC Bank have partnered to create a dedicated financing solution for GMEA customers that will see them enjoy cheaper asset finance facilities despite a market-wide escalation in lending rates.
Under the deal, valid up to 31st March 2016, General Motors East Africa customers will enjoy up to 95% financing on Isuzu & Chevrolet vehicles at flat interest rates of 8.47%.
Speaking at the signing of the agreement, General Motors East Africa Managing Director Rita Kavashe noted the timeliness of the product, saying it was part of a move to cushion loyal customers from the spike in rates.
“General Motors is rewarding its customers because the spike in interest rates may make it difficult for them to purchase our vehicles as they had intended. During the last quarter of 2015, we took an unprecedented decision to retain our prices despite the fluctuating exchange rates that adversely affected the Kenya Shilling against the US Dollar. As a show of market confidence, we embarked on a campaign to re-assure our customers that ‘bei ni ile ile’ (Our price remains the same). This also demonstrated our long term confidence in the Kenya Shilling.”
NIC on its part brings decades of asset finance experience to the table, meaning they have been able to provide a product that will meet individual customer’s needs.
NIC Bank’s Executive Director Alan Dodd noted the importance of providing a stable and predictable interest rate environment for business, which would make it easier to project performance into the future.
“We have tailored this product to reflect some of the lowest asset finance interest rates in the market at 8.47% to ensure that GMEA vehicles remain competitive. It is like a New Year’s gift that will keep giving and giving.” He added.
The NIC asset finance package will carry a 72-month repayment schedule and will be available right across GM’s dealership network in the country.