Isuzu EA has entered into an innovative partnership with NIC Bank which gives their SME customers a raft of mitigation measures on their payment of loans, providing additional business support in case of a disruption to their business.
The asset financing program dubbed “Zero Disruption” has been enhanced at no additional cost through insurance coverage for Isuzu trucks and pick-up for SME customers who will enjoy loan re-payment support of up to Ksh 300,000 per month for two months, allowing their normal business to resume.
Speaking at an event to seal the partnership deal, Rita Kavashe, Isuzu EA Managing Director said the initiative is expected to provide much needed relief to customers who suffer short term disruption in their business and gives them a fighting chance to sustain their businesses.
“We have interacted with Isuzu Customers who have been affected by temporary situations including accidents or loss of goods in transit. Depending on the time it takes to get the vehicle back on the road and make money, the owner would be at risk of accumulating loan repayment penalties. This program therefore gives customers a window to fix the problem as they continue servicing their loans,” said Rita.
The loss/damage of goods is covered up to a maximum of Ksh 1 million, cushioning customers from the severe impact of their lost incomes. In addition, the package includes a personal accident cover for driver and loader of up to Kshs 250,000 each. This critical mitigation is expected to give customers time to find alternatives and continue paying for their vehicles without the risk of heavy penalties or repossession.
On his part, the NIC Bank’s Group Managing Director John Gachora emphasized that, “As a bank, we are committed to support the growth of the SME sector, which contributes to more than 60 per cent of the country’s GDP and more than 80 per cent of all new jobs. We believe a vibrant SME sector will have significant potential to contribute to the future growth of Kenya and support realization of the Big 4 agenda. This is why we have continuously endeavored to develop innovative products and services, that speak to the needs of the sector to spur growth.
The “Zero Disruption” program applies to Isuzu SME customers who have purchased their trucks or pick-ups through NIC Bank credit facilities. Through the partnership, Isuzu customers get up to 95% financing for purchase of new vehicles, a 60-day grace period from the onset and a loan payment period of up to 5-years.
“The Small and Micro Enterprise sector which is the largest employer in Kenya will be the biggest beneficiary of this unique financing partnership. Isuzu East Africa is committed to supporting the growth of local enterprises which translates into the creation of more jobs and higher contribution to Kenya’s GDP,” said Rita.
John Gachora, NIC Bank’s Group Managing Director further added, “As the leader in Asset finance, we owe it to the industry to drive growth through meaningful financial solutions that not only drive access to financing but allow for businesses to thrive even in the current tough economic environment. Our Zero Disruption offer is testament to this commitment, where we seek to ensure that the SME doesn’t face challenges with loan repayments in the unfortunate event of an accident. We are committed to building the prosperity of every SME in Kenya, he affirmed.”
The new asset financing program is set to commence immediately to enable SME customers have peace of mind while purchasing Isuzu trucks and pick-ups while being assured of crucial intervention if a disruption was to occur.