Stanbic Bank launches vehicle financing product

The Stanbic Bank Tanzania has launched vehicle financing product for its executive and private banking customers.

Going by the title Vehicle Asset Finance (VAF), it would involve the bank financing up to 90 per cent of the real value of target new vehicles and 70 per cent value of imported used ones which are not older than seven years since date of their manufacture.

The minimum financing available would be 10m/- or USD 10,000/-, whereas the facility would have no limited amount as it would depend on client�s repaying capability.

Speaking during the launching ceremony held in the Dar es Salaam over the weekend, bank`s managing director Bashir Awale said the service is towards making the purchase of cars and assets as easy and smooth as possible for the bank�s prospective car owners and also assist individuals in managing their car allowances option free.

According to Awale, in order to secure the loan, one needs only to deposit 10 per cent of the value for a new vehicle and a 30 per cent for used ones.

There would be no requirements for any further collateral as the vehicle doubles as security for the finance facility.

The maximum repayment period for the finance facility is five years for new vehicles and three years for used cars.

Bank`s Head of Vehicle and Asset Finance, Erick Shao took the occasion to inform audience that the service would cater for both citizens and expatriates who are currently bank`s customers in the banks executive and private banking platform.

``The upside for using this product is that as new vehicle owner you need not concern yourself with the cost of the vehicle and at the end of 60 months you may be looking at an attractive resale depending on the model and use of the car``, he said.

Guest of honour at the event, newly appointed Bank of Tanzania (BoT�s) governor Benno Ndulu commended Stanbic for the innovative service which is in line with government`s policy which seeks to ensure advance in asset finance.

His applauses were voiced on the fact Stanbic had only launched house (mortgage) finance some few weeks ago, through which existing and prospective bank clients would not need collateral in accessing the finance, thus making vehicle asset finance, another good thing.

* SOURCE: Guardian