Sterling Bank Plc has gone into partnership with Tata Africa Services Limited to unveil an auto loan scheme which offers free spare parts and attractive discounts to business owners in Lagos.
The financing scheme, which has a maximum tenure of three years, will sort out the logistic challenges facing business owners as they strive to get products to customers, complete projects, and transport employees.
The commercial auto loan scheme covers the acquisition of trucks, semi-trucks, compactors, buses, delivery vans, and others. It was envisioned to empower Micro, Small & Medium Enterprises (MSME) to acquire operational vehicles which will in turn accelerate their growth through timely and hitch free delivery of products and services to customers.
Speaking during the unveiling ceremony by senior officials of Sterling Bank and Tata Africa Services, Executive Director, Retail & Consumer Banking, Mr. Grama Narasimhan said: â€œWe are delighted to partner with Tata Africa Services Limited to improve access to commercial auto loans and best-in-class operational vehicles to business owners in the country. This scheme is close to our heart at Sterling Bank because the efficient delivery of goods and services as well as the development of every aspect of the transport value chain will elevate SMEs, boost trade, create jobs and economic opportunities.â€
Encouraging business owners to take advantage of the commercial auto loan scheme to enhance profitability, Narasimhan disclosed that interested customers are expected to contribute a minimum of 20 percent and/or a maximum of 80 percent of the cost of the vehicle while Sterling Bankâ€™s funding is subject to change based on the borrowerâ€™s capacity.
He added that the financing arrangement has a maximum tenor of three years depending on the warranty on the vehicle and comes with a discount.
â€œTata Africa Services is expected to provide a discount on every vehicle financed by Sterling Bank and deliver the financed asset to the borrower within 24 hours of receipt of advice from the lender,â€ Narasimhan explained.
Commenting on the initiative, Auto Head, Tata Motors Limited, Mr. Suraj Prakesh said: â€œWe are partnering with Sterling Bank to offer one of the best value propositions in commercial auto finance through our wide product range of cars, buses, semi-trucks, trucks, delivery vans and after sales services.
â€œThis proposition covers ease of acquiring operational vehicles on credit to meet business needs in 72 hours, discount on every automobile financed through Sterling Bank, free spare parts for all the automobiles and opportunity to acquire a maximum of three units of the different vehicle brands that are part of the scheme.â€