Buying a car in Kenya can be exciting, but it often requires financial assistance. Car loans offer a way to make your dream of owning a vehicle a reality.
These loans come in various forms, with different terms and conditions to suit different needs.
Car loans in Kenya provide flexible financing options for both new and used vehicles. Banks, microfinance institutions, and digital lenders all offer auto financing solutions.
These loans can help you purchase personal or business vehicles without having to pay the full amount upfront.
When looking for a car loan in Kenya, it’s important to compare different offers. Interest rates, repayment periods, and loan amounts can vary widely between lenders.
By exploring the best car financing options, you can find a loan that fits your budget and gets you behind the wheel of your desired car.
Best Auto loans in Kenya for financing your next ride
1) Absa Bank Car Loan
Absa Bank offers a flexible car loan option for Kenyans looking to buy a vehicle. This loan caters to both new and used car purchases.
For new cars, Absa provides up to 100% financing on selected models. This means you can drive off in your dream car without a large upfront payment.
If you’re interested in a used car, Absa can finance up to 75% of the vehicle’s value. The bank sets a maximum age limit of 7 years for second-hand cars.
Absa’s car loan comes with a repayment period of up to 48 months. This gives borrowers ample time to pay off their loan in manageable installments.
The bank also offers 100% insurance premium financing. This feature allows customers to include the cost of car insurance in their loan, easing the financial burden.
Absa Bank Kenya provides an online platform for loan applications. This digital option makes the process faster and more convenient for busy customers.
The loan amount and terms depend on the applicant’s income and credit history. Absa assesses each application individually to determine the best offer for the customer.
2) Co-operative Bank Asset Finance
Co-operative Bank offers attractive asset financing options for Kenyans looking to buy vehicles and other movable assets.
Their loans cover a wide range of items, from cars to computers.
The bank provides financing for up to 80% of the asset’s value. This applies to both new and used items, giving customers flexibility in their purchasing decisions.
Loan amounts start from as low as Sh. 300,000. This makes Co-op Bank’s asset finance accessible to many Kenyans with different budgets and needs.
Repayment terms are generous, ranging from 60 to 96 months. This extended period allows borrowers to manage their monthly payments more easily.
Co-op Bank sweetens the deal by offering a 10% discount on vehicle purchases made through their financing. This guaranteed saving can make a significant difference in the overall cost.
The bank’s asset finance covers various types of vehicles. These include personal cars, pickups, tractors, school buses, and even prime movers for commercial use.
Beyond vehicles, Co-op Bank also finances other useful assets. Customers can get loans for laptops, printers, generators, and even medical equipment.
Explore Coop asset financing options
3) KCB Car Loan
The bank provides a long repayment period of up to 72 months. This gives borrowers plenty of time to pay back the loan without straining their finances too much.
To qualify, a person needs to have had an active KCB account for at least 3 months. They also need to show proof of security for the loan.
The interest rate for KCB car loans is competitive at 13%.
There’s a negotiation fee of 2.5% for the loan. While this adds to the cost, it’s a standard fee for many banks in Kenya.
KCB requires some documents to process the loan. These include a valid Kenyan ID or passport and latest original pay slips. Self-employed individuals need to show proof of their income.
The bank aims to make the application process simple. Once approved, borrowers can quickly get their funds and purchase their desired vehicle.
4) NCBA Vehicle Loan
NCBA Bank offers a great option for car buyers in Kenya. Their vehicle loan can help you get the car you want without emptying your savings.
NCBA promises quick approval for qualified applicants. If you meet their requirements, you could get an answer in just 12 hours.
The bank provides flexible payment options. This lets you spread out the cost of your new car in a way that fits your budget.
NCBA’s car loans come with no hidden costs. What you see is what you get, so you don’t have to worry about surprise fees later on.
For extra peace of mind, NCBA offers insurance premium financing. This can help cover the cost of insuring your new vehicle if you need it.
NCBA aims to make the car buying process smooth and straightforward. Their loan terms are designed to be clear and easy to understand.
The bank’s car loan can be used for both new and used vehicles. This gives buyers more choices when shopping for their next car.
5) Stanbic Bank Auto Loans
Stanbic Bank offers a Vehicle and Asset Finance facility for Kenyans looking to purchase cars. This loan product provides financing for up to 60 months.
The bank’s extensive experience in vehicle financing allows it to offer competitive and flexible terms to customers. Stanbic has been in the auto loan business for over 50 years, building expertise in this area.
Borrowers can use Stanbic’s auto loans to buy motor vehicles for personal or business use. The financing also covers other assets like equipment and machinery for companies.
To qualify, applicants need to meet Stanbic’s lending criteria. The bank assesses factors like income, credit history, and ability to repay when reviewing auto loan applications.
Stanbic Vehicle and Asset Finance Loans
6) Equity Bank Auto Loan
Equity Bank offers a car loans via their Asset Finance for SMEs product.
The bank provides upto100% financing for car purchases. This means buyers don’t need to make a down payment, which can be a big help for many people.
The loan amount depends on the borrower’s ability to repay. Equity Bank looks at a person’s income and expenses to decide how much they can afford to borrow.
The bank also offers extra services like insurance packages with their car loans.
Explore Equity’s Asset Finance product
7) Diamond Trust Bank Car Finance
DTB’s Beba Leo scheme lets customers buy brand new vehicles from approved makes. The bank provides 100% financing for these purchases.
This car loan targets small and medium enterprises (SMEs). It works for both business and personal vehicle needs. Customers can choose cars that fit their specific requirements.
DTB’s interest rate for car loans is around 16% on a reducing balance. This rate may change based on market conditions and the borrower’s profile.
To apply, customers need to show why they need the loan. They should explain how it will help their business. DTB also asks for information about past projects and business plans.
The bank looks at the loan’s purpose and potential returns. They check the applicant’s experience with similar projects. A marketing plan and financial projections are also required.
DTB is a top-tier bank in Kenya. It’s known for strong financial performance and is listed on the Nairobi Securities Exchange, which adds to its credibility.
8) Family Bank Car Loan
Though not apparent, Family Bank does offer car loans through their Asset Finance loan product.
The bank provides up to 80% financing on new vehicles for a period of up to 4 years, and 70% for used personal cars.
Family Bank’s loan calculator helps borrowers estimate their monthly payments. Users can input the loan amount, interest rate, and repayment period to see their potential costs.
Vehicle Financing Options:
- Brand new vehicles:
- Financing: Up to 80%
- Repayment Period: Up to 4 years
- Used commercial / personal vehicles:
- Financing: Up to 70%
- Repayment period: Up to 3 years
- Used PSV vehicles:
- Financing: Up to 60%
- Repayment Period: Up to 2 years
- General terms:
- Minimum monthly income for eligibility: KES 10,000
- Minimum loan amount: Low
- Maximum loan requirement: No limit
- Insurance: Comprehensive insurance for vehicles and equipment will be maintained for the duration of the finance period, unless exceptions are sought.
- Repayment period: From 1 to 4 years
The bank’s partnership with Simba Corporation expands the available vehicle choices. Customers can access popular brands like Mitsubishi, Mahindra, and Fuso through this collaboration.
9) I&M Bank Auto Loan
I&M Bank offers car financing options to help Kenyans buy their dream vehicles. They provide loans for both new and used cars.
For new cars, I&M Bank finances up to 80% of the cost. The repayment period extends up to 48 months. The bank allows financing for cars up to 8 years old.
Their Pata Gari Bila Stress car financing offer allows you 100% financing for up to 60 months repayment period, and 2 months grace period.
The bank offers competitive interest rates starting at 15.55% per year. This rate combines their base rate (12.55%) plus a 3% margin.
I&M Bank processes car loans quickly. They aim to approve loans within 48 hours of receiving all required documents. This fast turnaround helps buyers act swiftly when they find the right car.
The bank works with many car dealerships across Kenya. This gives borrowers a wide range of vehicle options to choose from. I&M Bank’s car loans cater to individuals, small businesses, and large corporations.
Non-bank car loans in Kenya
Non-bank car loans are changing how Kenyans buy vehicles. These loans offer new options for people who can’t get traditional bank financing.
You can now get a car loan without going through a bank in Kenya. This opens up possibilities for many who struggle to meet strict bank requirements. Non-bank lenders often have more flexible terms and faster approval processes.
Car ownership is becoming more accessible in Kenya thanks to these alternative loan options.
10) Mogo Auto Loans
Looking for a car loan in Kenya? Mogo offers flexible financing options for used cars. They make the process easy and quick.
Here’s how it works:
- Pick any car you like from ads, markets, or car yards.
- Apply online. You choose the loan amount, repayment time, and down payment.
- Get an offer fast and sign if you agree.
Mogo loans range from 50,000 to 2,500,000 Kenyan Shillings. You can pay back over 6 to 60 months.
Their interest rates are low compared to other lenders. This helps keep your monthly payments affordable.
You don’t need perfect credit for a Mogo loan. They look at other factors too. This gives more people a chance to buy a car.
Mogo is part of a bigger company that works in many countries. They know how to help people finance cars.
11) Mwananchi Credit
With Mwananchi Credit, you can borrow up to 25 million Kenyan shillings for a car loan. This high limit lets you almost any new car.
Mwananchi Credit Limited is a leading car financing provider in Kenya that offers fast and affordable loans. They provide car financing options with the following key features:
- Loan approval in less than 6 hours
- Financing up to 25 million Kenyan Shillings
- Guaranteed and affordable loans
The company aims to make car ownership more accessible to Kenyans by offering quick, affordable, and hassle-free financing options.
They position themselves as a solution for those who may not have the full amount to purchase a car outright.
Besides car loans, Mwananchi Credit provides other options like logbook loans and title deed loans. This makes them a versatile choice for different financial needs.
12) Rafiki Microfinance
Rafiki Microfinance Bank offers car loans to help you get your dream car. You can borrow up to 5 million Kenyan shillings to buy a car.
The bank gives you up to 60 months to pay back the loan. This long repayment period can make your monthly payments more affordable.
Interest rates on Rafiki’s car loans range from 14% to 16% per year. The exact rate depends on how much you borrow and how long you take to repay.
The microfinance bank has 19 branches across 11 counties in Kenya. You can also use internet banking or mobile banking to manage your loan.
13) Hakki Car Finance
Hakki offers car financing in Nairobi, Kenya. They provide loans for up to 90% of a car’s value. This means you only need to pay 10% upfront.
Hakki’s interest rate is 2.5%. This is lower than many other lenders in Kenya. They also promise quick service, with loans approved in 24 hours.
One big plus of Hakki is that they have no hidden costs. What you see is what you pay. This makes budgeting easier for you.
They also offer other services. These include logbook loans and financing for e-bikes and car imports. This gives you more options if you need different types of vehicle loans.
14) Autocheck Africa
Autocheck Africa is changing how Kenyans buy cars. They offer an online marketplace for car loans. This makes it easier for you to get financing for a new or used vehicle.
On their website and app, you can browse cars and apply for loans. They work with banks like Ecobank and NCBA to provide financing options. You can get loans with up to 60-month terms.
Autocheck Africa aims to boost car ownership in Kenya. They know credit access is limited, with only 27.5% of Kenyans having credit. Their platform helps more people qualify for auto loans.
15) Watu Africa
Watu Africa offers was started in 2021 to help Kenyans drive their dream cars, and has quickly become a formidable lender in the auto industry.
You can get up to 80% of your car’s value financed. Interest rates are affordable, with no hidden fees. Loan periods range from 6 to 60 months.
Watu Africa aims for speed. You can drive your new car within 24 hours of approval. They work with select dealerships across Kenya.
To qualify, you need a few key documents. These include your national ID or passport, KRA PIN certificate, and bank statements. You also need an NTSA TIMS account in your name.
The process is simple. Pick a car, apply for the loan, and get approved quickly. Watu Africa adds comprehensive motor insurance to your loan principal.
For businesses, Watu Africa has specific requirements. These include a certificate of incorporation and audited accounting reports.
Sacco car loans
16) Safaricom Sacco Asset Financing
Safaricom Sacco offers asset finance loans to its members. These loans help you buy vehicles and other assets.
The loan amount can be up to 3 times your deposits. You can borrow between Ksh 300,000 and Ksh 7,000,000.
Repayment terms stretch up to 48 months. The interest rate is 1% per month on a reducing balance.
For new vehicles, Safaricom Sacco finances up to 90% of the cost. For used vehicles, they finance up to 80%.
You need to make a 20% deposit before getting the loan. The vehicle’s logbook serves as security.
Safaricom Sacco has some rules about the vehicles they finance. The maximum age limit for vehicles is 9 years.
To get the loan, you need a valuation report. You also need to set up comprehensive insurance for the vehicle.
Safaricom Sacco requires tracker installation by their service providers. The vehicle must be for private use, not for public service.
17) Maisha Bora Sacco
Maisha Bora Sacco offers motor vehicle financing for members looking to buy a car. They have some attractive loan terms that may interest you.
The interest rate is 1.25% on a reducing balance. This means your interest payments decrease as you pay down the loan principal. There’s also a 1% processing fee and a 500 Kenyan shilling fee for credit reference bureau checks.
You can spread repayments over up to 48 months. This gives you flexibility in managing your monthly budget. Maisha Bora allows members to have one vehicle loan at a time.
To qualify, you need to be a member for at least 3 months. The loan amount depends on the car’s value. For Toyota models, you can borrow up to 90% of the forced sale value. Other car brands are eligible for up to 80%.
If you’re interested, contact Maisha Bora Sacco to learn more about their vehicle financing options. Their loans could help make your dream of car ownership a reality.
18) Amref sacco
Amref Sacco offers car loans to help you buy your dream vehicle.
With Amref Sacco, you can get financing for up to 80% of the car’s value. This makes it easier to afford a new or used car.
The loan has some great features. You can borrow up to 5 million Kenyan shillings. The interest rate is 1.5% on a reducing balance. This means your interest payments go down as you pay off the loan.
Amref Sacco works with trusted car dealers. This gives you access to both new and imported used cars. You have options to find the right vehicle for your needs and budget.
The loan term is 36 months. This gives you 3 years to pay off your car. The car itself acts as security for the loan. This helps Amref Sacco offer competitive rates.
To qualify, you need to be an Amref Sacco member. Join the Sacco and start saving to become eligible for this car loan product.
FAQs
Can a SACCO buy you a car?
Yes, many SACCOs in Kenya offer car loans.
For example, AMREF SACCO partners with import car dealers to finance up to 80% of the car value. They charge 1.5% interest on a reducing balance and offer loan terms up to 36 months.
Which bank gives 100% car loans in Kenya?
Equity Bank provides 100% financing for car purchases through their Asset Finance for SMEs product. This means you don’t need to make a down payment, which can be very helpful if you’re short on cash.
Are SACCO loans cheaper than bank loans?
SACCO loans are often cheaper than bank loans. They typically offer lower interest rates and more flexible terms. However, rates vary between lenders, so it’s important to compare options.
What are typical interest rates for car loans in Kenya?
Interest rates for car loans in Kenya vary widely.
NCBA Bank starts from 13% per year, while some non-bank lenders like Mogo Kenya offer rates as low as 2.5% per month.
Can I get a car loan without a down payment?
Yes, some lenders offer 100% financing.
Equity Bank is one example. However, most lenders require a down payment, often around 10-20% of the car’s value.
Understanding car loans in Kenya
Car loans in Kenya help people buy vehicles when they don’t have all the cash upfront. These loans come with different terms, rates, and requirements. Knowing how they work and what you need can make getting a car loan easier.
How car loans work
Car loans in Kenya let buyers spread out payments over time. Banks and other lenders give money to buy a car. The buyer then pays back the loan plus interest in monthly installments.
Loan terms usually range from 3 to 5 years. Longer terms mean lower monthly payments but more interest paid overall.
Interest rates vary between lenders. They’re often between 12-18% per year. Your credit score and income affect the rate you get.
Most lenders require a down payment of 10-20% of the car’s value. This reduces the loan amount and shows you can save.
Eligibility criteria
To get a car loan in Kenya, applicants must meet certain requirements:
- Age: Usually 21-60 years old
- Income: Steady job or business with enough earnings to cover payments
- Credit score: Good credit history improves chances and rates
- Residency: Kenyan citizen or resident with valid ID
- Bank account: Active account for payments
Some lenders may have extra rules. For example, they might need you to have had your job for a minimum time.
Documentation required
Lenders need specific papers to process a car loan. Common documents include:
- National ID or passport
- KRA PIN certificate
- Recent pay slips (last 3-6 months)
- Bank statements (last 6-12 months)
- Proof of residence (utility bill or lease agreement)
- Car details (if buying used)
- Filled loan application form
Self-employed people may need to show business registration and financial records.
It’s smart to gather all documents before applying. This speeds up the process and shows you’re prepared.
Interest rates and terms
Car loans in Kenya come with different interest rates and repayment terms. These factors greatly affect the total cost of borrowingThe cost of borrowing refers to the total expenses that a borrower incurs when taking out a loan or using credit. This cost is not just the interest r... and your monthly payments.
Fixed vs. variable interest rates
Fixed interest rates stay the same throughout the loan term. They offer predictable monthly payments, making budgeting easier. Many Kenyan banks offer fixed rates for car loans.
Variable rates can change based on market conditions. They often start lower than fixed rates but may increase over time. This can lead to higher payments later.
Equity Bank and NCBA Bank are known for competitive car loan rates. As of 2024, interest rates for car loans in Kenya typically range from 13% to 18%.
Some lenders offer introductory low rates that increase after a set period. It’s important to read the fine print and understand how rate changes might affect future payments.
Loan repayment periods
Car loan terms in Kenya usually range from 1 to 5 years. Longer terms mean lower monthly payments but higher total interest paid over time.
KCB Bank offers up to 5 years for new cars and 4 years for used cars. They even provide 100% financing for some loans with terms up to 54 months.
Shorter loan terms typically come with lower interest rates. This can save money in the long run, but monthly payments will be higher.
Some lenders have minimum and maximum loan amounts that affect available terms. It’s crucial to compare offers from different banks to find the best combination of rate and term for your budget.
Tips for choosing the best car loan
Getting a car loan in Kenya can be tricky. Here are some key things to think about when looking for the best deal. Comparing different lenders and understanding hidden fees are crucial steps.
Comparing different lenders
Start by looking at several lenders. Banks, SACCOs, and car dealers all offer loans in Kenya. Check their interest rates and loan terms. Lower rates mean you pay less over time.
Look at how long you have to repay the loan. Longer terms mean smaller monthly payments, but more interest paid overall. Shorter terms cost more per month but save money in the long run.
Some lenders may have special deals or discounts. Ask about these. They could save you money. Also, check if you can pay off the loan early without penalties. This gives you more flexibility.
Understanding hidden fees
Car loans often come with extra costs that can surprise borrowers. Look for fees like processing charges, insurance costs, and late payment penalties. These can add up quickly.
Ask about all fees before signing any papers. Some lenders charge for things like loan application or account setup. Make sure you know what you’re agreeing to pay.
Check if there’s a fee for paying off the loan early. Some lenders do this to make up for lost interest. You need to know about this if you might want to pay off the loan faster.
Be careful with add-ons like extended warranties or gap insurance. These can increase your total cost. Make sure you understand and need any extra services before agreeing to them.
