Premier Shariah-compliant bank, Gulf African Bank and Toyota Kenya have entered into a strategic financing partnership that will enable the bank’s Corporate and SME customers to purchase Hino trucks and buses, and Hilux single and double cab pick-ups through diminishing Musharakah-based vehicle financing.
Under the Shariah financing model, the bank and the customer both contribute to the purchase of the vehicle creating co-ownership, where Gulf African Bank will extend financing up to 95% of the value of the unit, repayable by the customer within a period of 60 months.
Educational institutions will nonetheless receive up to 100% financing for Hino school buses, an amount payable in 60 months, but with a three-month repayment holiday. In addition, customers who may wish to purchase personal vehicles from the Toyota or Suzuki models will be offered up to 90% financing.
Toyota Kenya Managing Director, Arvinder Reel, said the partnership with Gulf African Bank opens up more opportunities for investors or customers looking at alternative financing models for the acquisition of commercial vehicles to further their businesses.
“We however also look at this partnership as yet another route through which customers can enjoy the benefits of owning brand new passenger vehicles such as the Toyota Starlet, Corolla Cross, Suzuki Brezza and others at an affordable pricing that starts from Ksh2 million.”
Speaking during the signoff ceremony, Gulf African Bank’s Deputy CEO, Anuj Mediratta said, “We are confident that by partnering with like-minded institutions like Toyota Kenya, we are going to play a critical role in spurring private sector growth in the country especially during this period of Covid 19 when most businesses have been affected. This financing arrangement is available to both GAB and non-GAB customers seeking Shariah-compliant financing to purchase different types of motor vehicle models and motorcycles on offer from Toyota Kenya to ease their logistical challenges. This partnership further reinforces our position as the leading Shariah-compliant asset financing partner in Kenya”.
Mr. Reel added, “Our Hino trucks and buses lineup provides appropriate solutions that address the rigors of any business because of the understanding of the local terrain and demands of customers businesses. We intend to continue building solid partnerships with financial institutions to ensure that more Kenyans get to enjoy the benefits of owning a Hino truck or bus. Additionally, through our growing network of branches and dealerships across the country, customers should be assured of quality Toyota Kenya service and after-sales from any part of the country.