Commercial Bank of Africa (CBA) is curving a niche in high end asset financing targeting businesses with expensive equipment requirements and its growing clout of affluent customers.
The lender, Thursday evening signed a long term partnership with Simba Corporation, a Kenyan reseller of BMW cars, Mitsubishi trucks and Renault vehicles, that will see its customers access top range BMW cars at 15 percent interest on loans.
Under the arrangement, CBA will avail up to 95 percent of total financing cost that will also cater for extras (pimping of the vehicles).
CBA Chief executive, Jeremy Ngunze said the bank has started plans to provide its customers access pre-approved credit cards to ease purchase of spares and parts.
“Other benefits will include free tracking systems for the vehicles and an attractive insurance cover of 4.5 percent and re-payment period of five years,” said Ngunze.
Simba Corp. Executive director, Dinesh Kotecha said BMW is leveraging on the partnership to re-position itself in the high end offering and grow its market share in sale of cars and motorcycles.
The reseller is constructing Sh 800 million Showroom for BMW, Mitsubishi and Renault brands, at Delta Tower in Westlands.
The facility will be completed in the second quarter of 2015.