Owning a car is a common dream for many, but the financial hurdle often makes it difficult to achieve. Fortunately, several financial institutions in Kenya offer affordable car loans with flexible repayment terms, enabling both individuals and businesses to acquire new or used vehicles.
Here is a list of some of the best banks for car loans in Kenya, along with their terms, rates, and unique benefits.
1. KCB Bank
KCB Bank provides a personal car loan with a competitive interest rate and flexible repayment options. This loan is available to both salaried and self-employed individuals. To qualify, you must have had an active KCB account for at least three months, with security proof required to secure the loan.
- Interest Rate: 13% per annum
- Repayment Period: Up to 72 months
- Benefits:
- Available to salaried and self-employed individuals
- Flexible repayment terms
- Higher loan limits based on your security’s value
2. National Bank
National Bank offers a cash-backed car loan to finance both new and used cars. You can also use the loan for major repairs or the replacement of parts. The bank offers 100% financing, making it an attractive option for those looking for full funding.
- Interest Rate: 13% per annum
- Repayment Period:
- Up to 60 months for a new car
- Up to 48 months for a used car
- Financing: 100% of the car’s value
3. Stanbic Bank
Stanbic Bank provides vehicle and asset financing with terms suitable for both individuals and businesses. With more than 50 years of experience in vehicle financing, Stanbic offers competitive and flexible terms for purchasing a wide range of motor vehicles.
- Interest Rate: 14.5% per annum
- Repayment Period: Up to 60 months
- Benefits:
- Financing for vehicles ranging from saloon cars to commercial trucks and earthmovers
- Flexible terms with both local and foreign currency options
- Insurance premium financing and reminders for insurance expiry
Requirements:
- Bank statements for the last six months
- Certified copies of identification (ID or passport) and KRA PIN
- Pro-forma invoice from the seller
- Logbook and valuation report (for used vehicles)
4. I&M Bank
I&M Bank offers up to 80% financing for new and used cars, with a simple and quick application process. The bank finances various types of vehicles, including commercial trucks, motorcycles, and tractors, and offers financing terms of up to 48 months.
- Interest Rate: 13% per annum
- Repayment Period: Up to 48 months
- Benefits:
- Up to 80% financing for assets
- Quick approval process
- Direct import finance options through selected dealers
- Insurance premium financing available
5. Co-operative Bank
Co-op Bank offers car loans for various moveable assets, including cars, pickups, tractors, and school buses. The interest rate is competitive, and repayment terms are flexible to meet your financial needs.
- Interest Rate: 13% per annum
- Benefits:
- Flexible financing for both local and foreign currency loans
- Automatic reminders for insurance expiry
- Financing available for both personal and commercial vehicles
Requirements:
- Copies of ID and KRA PIN
- Invoice or importation documents
6. Family Bank
Family Bank offers asset financing for both new and used vehicles, with up to 80% finance for brand new vehicles and flexible repayment periods. The loan is available for a wide range of vehicles, including motorcycles, buses, pickups, and commercial trucks.
- Interest Rate: 13% per annum
- Repayment Period:
- Up to 4 years for brand new vehicles
- Up to 3 years for used vehicles
- Benefits:
- Up to 80% financing for new vehicles
- Flexible repayment options
- Financing for used PSV vehicles available
Requirements:
- Bank statements for six months
- Copy of ID and KRA PIN
- Pro-forma invoice from the dealer
- Logbook and valuation report for used vehicles
7. NCBA
NCBA offers competitive car loans with a 13% interest rate and quick loan approvals within 12 hours. The bank finances both new and used cars, with convenient repayment options to spread the cost.
- Interest Rate: 13% per annum
- Benefits:
- Quick loan approval within 12 hours
- Additional insurance premium options
- Financing for both new and used vehicles (up to 8 years old)
The availability of car loans in Kenya makes it easier for individuals and businesses to acquire vehicles with flexible repayment terms and competitive interest rates. Whether you’re purchasing a new car or upgrading to a used vehicle, banks such as KCB Bank, National Bank, Stanbic Bank, and I&M Bank provide tailored solutions to meet your needs.
Be sure to compare interest rates, repayment periods, and additional benefits to find the best bank for your car loan. Also, ensure that you meet the eligibility requirements before applying for financing.
