Best Bank Car Financing Companies In Kenya

This article provides a list of the top bank car financing companies in Kenya. Car financing is a financial product that allows you to buy a car by making a small deposit and taking out a loan from a company. You will then need to repay the loan, along with any interest, according to the terms and conditions of the lender.

Banks are a good option for those who have a consistent income and/or collateral. By exploring the best car financing options, you can find a loan that suits your budget and helps you purchase the car you want. Here is a list of the best Car Financing Companies in Kenya.

Top Bank Car Financing Companies In Kenya

1. Family Bank

Family Bank offers car loans through its Asset Finance loan product, providing up to 80% financing on new vehicles for a period of up to 4 years and 70% for used personal cars.

The Family Bank’s loan calculator helps borrowers estimate their monthly payments. Users can input the loan amount, interest rate, and repayment period to see their potential costs.

Features

  • Receive up to 80% financing for brand-new vehicles
  • Loan repayment period of up to 4 years for brand-new vehicles
  • Up to 70% financing for used commercial/personal vehicles
  • Loan repayment period of up to 3 years for used commercial/personal vehicles
  • Up to 60 % financing for used PSV vehicles
  • Loan repayment period of up to 2 years for used PSV vehicles
  • Minimum monthly income for eligibility – Kshs 10,000
  • Low minimum loan amount
  • No maximum loan requirement
  • Insurance for vehicles/equipment will remain comprehensive for the period the asset is under finance unless exceptions are sought
  • Repayment period from 1 to 4 years

Requirements

  • All used assets must not be older than 10 years at the end of loan expiry
  • Pre-printed application form (available at all Family Bank branches)
  • Bank statements for 6 months
  • Copy of National ID/passport and KRA PIN
  • Pro-forma Invoice from the dealer/seller
  • Copies of logbooks for other motor vehicles owned by the applicant
  • The year of manufacture of the vehicle should not be more than 12 years as a loan expiry
  • Recent AA / Regent Automobile valuers and assessors valuation (used vehicles)
  • Copy of logbook (used vehicles)
  • Sale agreement

The bank’s partnership with Simba Corporation expands the available vehicle choices. Customers can access popular brands like Mitsubishi, Mahindra, and Fuso through this collaboration.

2. NCBA Bank

NCBA Bank offers a great option for car buyers in Kenya. Their vehicle loan can help you get the car you want without emptying your savings. NCBA promises quick approval for qualified applicants. If you meet their requirements, you could get an answer in just 12 hours.

The bank provides flexible payment options. This lets you spread out the cost of your new car in a way that fits your budget. NCBA’s car loans come with no hidden costs. What you see is what you get, so you don’t have to worry about surprise fees later on.

For extra peace of mind, NCBA offers insurance premium financing. This can help cover the cost of insuring your new vehicle if you need it.

NCBA aims to make the car buying process smooth and straightforward. Their loan terms are designed to be clear and easy to understand. The bank’s car loan can be used for both new and used vehicles. This gives buyers more choices when shopping for their next car.

3. Diamond Trust Bank

DTB’s Beba Leo scheme lets customers buy brand-new vehicles from approved makes. The bank provides 100% financing for these purchases. This car loan targets small and medium enterprises (SMEs). It works for both business and personal vehicle needs. Customers can choose cars that fit their specific requirements.

DTB’s interest rate for car loans is around 16% on a reduced balance. This rate may change based on market conditions and the borrower’s profile.

  • Loan Period – Maximum of 48 months
  • Interest rate – Prevailing Market Rate
  • Fees – Appraisal Fee 2% on the loan amount, 1% on the anniversary of the loan
  • Value Add – Credit Card – Kshs. 300,000

DTB is a top-tier bank in Kenya. It’s known for its strong financial performance and is listed on the Nairobi Securities Exchange, which adds to its credibility.

4. Absa Bank

Absa Bank offers a flexible car loan option for Kenyans looking to buy a vehicle. This loan caters to both new and used car purchases.

Financing a new car 
  • Up to 95% financing
  • Up to 72-month repayment period
  • One month repayment holiday
  • Credit card option of up to KES300,000
  • 100% insurance premium financing
Financing a second-hand car
  • Up to 75% financing
  • Up to 100% financing for selected car models
  • Up to 48-month repayment period
  • 100% insurance premium financing
  • Second-hand car models should not be older than 7 years

Absa Bank Kenya provides an online platform for loan applications. This digital option makes the process faster and more convenient for busy customers. The loan amount and terms depend on the applicant’s income and credit history. Absa assesses each application individually to determine the best offer for the customer.

5. Stanbic Bank

Stanbic Bank offers a Vehicle and Asset Finance facility for Kenyans looking to purchase cars. This loan product provides financing for up to 60 months.

The bank’s extensive experience in vehicle financing allows it to offer competitive and flexible terms to customers. Stanbic has been in the auto loan business for over 50 years, building expertise in this area.

Borrowers can use Stanbic’s auto loans to buy motor vehicles for personal or business use. The financing also covers other assets like equipment and machinery for companies.

To qualify, applicants need to meet Stanbic’s lending criteria. The bank assesses factors like income, credit history, and ability to repay when reviewing auto loan applications.

6. Co-operative Bank 

Co-operative Bank offers attractive asset financing options for Kenyans looking to buy vehicles and other movable assets. Their loans cover a wide range of items, from cars to computers.

Features

  • Financing of all types of moveable assets such as laptops, computers, printers, saloon cars, pickups, tractors, prime movers, school buses, generators and even medical equipment
  • Financing of up to 80% for both new and used assets
  • Competitive pricing in both local and foreign currency
  • Flexible repayment period of between 60 and 96 months
  • Automatic reminders of insurance expiry
  • You can also access our business asset finance solutions

Requirements

  • Copies of identification
  • Invoices and/or importation documents
  • Copy of KRA PIN

7. I&M Bank

I&M Bank offers car financing options to help Kenyans buy their dream vehicles. They provide loans for both new and used cars. For new cars, I&M Bank finances up to 80% of the cost. The repayment period extends up to 48 months. The bank allows financing for cars up to 8 years old.

Their Pata Gari Bila Stress car financing offer allows you 100% financing for up to a 60-month repayment period and a 2-month grace period. The bank offers competitive interest rates starting at 15.55% per year. This rate combines their base rate (12.55%) plus a 3% margin.

I&M Bank processes car loans quickly. They aim to approve loans within 48 hours of receiving all required documents. This fast turnaround helps buyers act swiftly when they find the right car.

The bank works with many car dealerships across Kenya. This gives borrowers a wide range of vehicle options to choose from. I&M Bank’s car loans cater to individuals, small businesses, and large corporations.

8. KCB 

KCB Bank provides a long repayment period of up to 72 months. This gives borrowers plenty of time to pay back the loan without straining their finances too much. To qualify, a person needs to have had an active KCB account for at least 3 months. They also need to show proof of security for the loan.

The interest rate for KCB car loans is competitive at 13%. There’s a negotiation fee of 2.5% for the loan. While this adds to the cost, it’s a standard fee for many banks in Kenya.

KCB requires some documents to process the loan. These include a valid Kenyan ID or passport and the latest original pay slips. Self-employed individuals need to show proof of their income. The bank aims to make the application process simple. Once approved, borrowers can quickly get their funds and purchase their desired vehicle.

9. Equity Bank

Equity Bank offers car loans via their Asset Finance for SMEs product. The bank provides up to 100% financing for car purchases. This means buyers don’t need to make a down payment, which can be a big help for many people.

The loan amount depends on the borrower’s ability to repay. Equity Bank looks at a person’s income and expenses to decide how much they can afford to borrow. The bank also offers extra services like insurance packages with their car loans.

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