Family Bank launches another vehicle purchase credit line for businesses
Family Bank pursuing business customers with vehicle purchase loans and partnerships with Isuzu, Toyota and Mitsubishi trucks distributor. The bank’s profit jumped 85% in the first quarter of 2020.
|Family Bank CEO Rebecca Mbithi|
Family Bank has teamed up with Isuzu East Africa to launch a vehicle purchase credit programme targeting commercial customers. Isuzu East Africa is the distributor of Isuzu vehicles across East Africa. The vehicle loans programme with Isuzu targets small businesses across Kenya. The programme lets Family Bank customers obtain up to 100% financing toward the purchase of Isuzu vehicles, and they can repay the loans over several years.
Under the programme, customers seeking to purchase Isuzu pickup or truck for commercial use can quality for up 95% financing payable over five years. Those seeking to purchase vehicles for public transportation or matatu service can secure up 80% financing repayable over four years. Schools and churches can quality for 100% financing toward the purchase of Isuzu vehicles.
Moreover, the programme allows borrowers three months grace period before they can begin repaying their loans.
“Every sector has been hard hit by the Covid-19 pandemic…Through the 90-day repayment holiday, we are seeking to offer flexible terms to business owners to be able to expand their businesses,” saidFamily Bank CEO Rebecca Mbithi.
Family Bank launched similar vehicle purchase loan programmes in partnership with Simba Corporation in February and Toyota Kenya in May. Simba Corporation is the distributor of Fuso, Mitsubishi and Mahindra vehicles in Kenya while Toyota Kenya sells Toyota vehicles in the country.
Family Bank made a profit of Ksh298 million in the first quarter of 2020, which increased 85% from a similar period last year. Notably, Family Bank is one of the private companies that have explored public listing of their shares. But Family Bank put its IPO plans on hold in 2017 after it ran into a crisis. The other company considering IPO is supermarket chain Tuskys, though it has recently run into a financialcrisis that now threaten its listing plans.