United Bank for Africa (UBA) Plc has partnered with Mikano Motors to introduce a new vehicle financing scheme that will allow Nigerians to buy brand new vehicles by making an initial deposit of 30 per cent, while the bank will finance the remaining 70 per cent.
The initiative tagged, “Drive Your Dream Today” was launched on Monday at the Mikano Motors showroom, Victoria Island, Lagos as the two companies aim to make vehicle ownership more accessible thru structured consumer credit.
Under the arrangement, eligible customers will pay 30 per cent of the cost of their preferred vehicle while UBA will finance the rest. The loan is repayable over 36 months at an interest rate of 23 per cent.
The scheme is available to salaried employes and self-employed Nigerians. UBA also said that people with no fixed monthly income could join, provided they meet the bank’s eligibility conditions.
The initiative is expected to provide an alternative for potential vehicle buyers who might not be able to afford the entire cost of a new vehicle upfront, while allowing them to pay off the cost over a period of three years.
UBA’s Group Executive Director-designate, Personal and Business Banking, Chidi Okpala, said the partnership was born out of the need to make vehicle ownership more accessible to hardworking Nigerians.
“Owning a car should not be out of reach for hardworking Nigerians and this partnership makes it far more achievable,” said Okpala.
He said customers were required to pay only 30 per cent of the vehicle’s value, while UBA would finance the remaining 70 per cent for repayment over three years.
Okpala said the initiative was part of the bank’s wider effort aimed at deepening access to credit and encouraging Nigerians to embrace responsible borrowing as a way of solving major financial needs.
The financing process has been deliberately simplified for customers with different income profiles, said UBA’s group head, consumer lending, Frank Okoh.
“We have made entry simple and the terms clear whether you are on a salary or running your own business,” Okoh said.
He said prospective customers would first go thru an eligibility check which could be done at any UBA branch or by email.
Once a customer has been approved, the applicant can secure a proforma invoice from Mikano Motors for the vehicle of their choice and proceed with the financing process.
This expansion of the scheme to include self-employed customers and individuals without regular monthly salaries increases the potential reach of the scheme especially for Nigerians who have income patterns that do not fit the conventional monthly salary structure required for some lending arrangements
Mikano Motors stated that the partnership with UBA is expected to improve access to its range of vehicles and also allow customers to enjoy the company’s after-sales support.
Tarek Mostafa, general manager, Mikano Motors, said the company’s objective was to provide customers with a complete ownership experience, not just to sell vehicles.
Mostafa said: “Mikano Motors was founded to give Nigerians a high-end ownership experience from the showroom to years down the road.
He said the company’s after sales services include the provision of genuine spare parts, maintenance and servicing support throughout the country.
According to Mostafa, the collaboration with UBA would provide more Nigerians with access to Mikano vehicles and the support services that come with ownership.
“Partnering with UBA enables more customers to experience that, and we are proud to forge deep relationships with a bank that shares our commitment to service,” he added.
The vehicle financing scheme is in line with UBA’s push to expand consumer lending and develop financial products that enable people to meet big-ticket purchase needs without paying the full amount upfront, the bank said.
The deal comes as interest in vehicle financing is growing as consumers and companies look for ways to cope with the rising cost of getting new cars.
The “Drive Your Dream Today” scheme enables eligible customers to acquire new vehicles from Mikano Motors with a structured repayment option by combining a 30 per cent initial payment with bank financing for the remaining 70 per cent.
Interested customers can start the process by checking their eligibility with UBA, before choosing their desired vehicle and obtaining the requisite proforma invoice from Mikano Motors, the bank said.
