Sterling Bank Plc has partnered with Tata Africa Services Limited to unveil a revolutionary auto loan scheme which offers free spare parts and attractive discounts to business owners.
The novel 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.
First of its kind in the Nigerian market,
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, Grama Narasimhan said,
“We 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.”
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 Bank’s funding is subject to change
based on the borrower’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. Tata 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,” Narasimhan explained.
Commenting on the initiative, Suraj Prakesh, Auto Head,
Tata Motors Limited said, “We 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.
This 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.”
Affirming Tata Motors Limited’s commitment to the production
of best-in-class automobiles, Prakesh said,
“We have proven ourselves in various world markets like South Africa,
Italy, Spain and the Middle East while competing with all
major international brands.
In these markets, we have continued to gain significant market
share because we domesticate our operations.
Same is being done in Nigeria which led to the recent roll
out of 200 locally assembled vehicles as part of our
commitment to Nigeria’s automotive policy.
Our vehicles are cost effective and made to suite the Nigerian terrain.”