KENYA
Frequently Asked Questions
All the answers to your questions
1. After identifying the vehicle that I want from the supplier, how do I apply for Vehicle Finance? What Documentation will I need to provide when I apply for my loan?
COMPANY/BUSINESS PEOPLE
• Well executed application form
• Well executed fact sheet
• Latest 12 months bank statements
• Certified copies of IDs or passports and photos of all signatories
• Certified copies of ID or passport and photo of at least one director. (At least one director must be a natural person under the Company Act 2015.)
• List of all directors signed by one director or the company secretary.KYC for all entities/natural persons owning more than 25% of the company.
• Latest filled annual returns or CR12 for entities that are not more than 18 months since the formation.
• Pin certificate of all directors (Kenya Clients)
• Memorandum and Articles of Association (Companies opened using the Old Company Act)
• Certified copy of Certificate of incorporation/registration
• KRA PIN certificate/certificate of exemption
• Resolution to open an account signed by:
• At least 2 directors or
• A director and a company secretary or
• The joint secretaries or
• One director and a witness (witness must provide ID copy, contacts and postal address)
• Printed in the company letterhead and sealed
• Company profile
• Proforma invoice of vehicle
• Well executed total cost of credit sheet (To be filled in once we have the Proforma invoice)
SALARIED
• Well executed application form
• Well executed fact sheet
Well executed total cost of credit sheet (To be filled in once we have the Proforma invoice)
• Letter from HR
• Transactional account and channel salary
• Minimum net salary – Kes 50k net
• Banking period – 3 months
• Latest 6 months bank statements
• Copies of ID & Pin certificate
• 3 months’ payslip
• Proforma invoice
Additional documents for used units:
• Copy of log book
• Copy of import documents
• Sale agreement
• Valuation report
2. Will the log book be used as security for the loan?
No. The bank will evaluate you for an unsecured loan and therefore you will be able to maintain your log book.
3. Can the bank give the loan as an asset finance and what are the benefits?
The bank can finance the vehicle once in Kenya. You will enjoy a competitive rate for the asset finance loans.
4. Does Stanbic finance vehicles older than ten years?
Under Kenyan regulations, used cars must be no more than 8 years old.
5. When is the first repayment due?
Approximately 45 days after Stanbic Bank issues the release letter.
6. Can I select my own car insurance provider?
No. The Stanbic/Avecs financed loans comes as a package.
7. Is it mandatory to install a tracking device on the unit?
Yes, Stanbic Bank has an approved panel of tracking companies, who install the device for the full period of the loan facility.
8. Can I access asset finance if I don’t have an account with Stanbic Bank?
Yes, Stanbic Bank offers asset finance to both account holders and non-account holders.
9. Can I cancel my request?
Yes, you may do so before the payment deadline, if no payment is received your request is automatically cancelled. The vehicle will become available to other clients.
10. Is there a cancellation fee?
Yes, a penalty fee will be charged.
11. What happens after my finance is confirmed? (PROCESS)
STEP 1: CAR IS SHIPPED FROM PORT OF LOAD/TRACKER ACTIVATION
STEP 2: PRE CLEARANCE PROCESS
STEP 3: VESSEL ARRIVES AT PORT
STEP 4: VEHICLE INSPECTION
STEP 5: COLLECTION OF VEHICLE
STEP 6: CLIENT RECIEVES VEHICLE
STEP 7: CLIENT CONTINUES TO PAY OFF FINANCE TO THE BANK
12. What happens if there is something wrong with the car?
Claim to be submitted to the local agent on collection of the vehicle. No claims will be accepted after the vehicle has been with the client for more than 2 hours.
13. How long does it take after completing the application form to hear from you?
The average length of time it takes to hear back is 5-7 working days after you submit your application documents.
14. Do I need to pay a deposit?
It is always advisable to pay a deposit as this will lower your monthly instalments;.
15. Can I reserve a vehicle I am interested in? If so how?
Yes you may for a period of 48 hours.
16. What is the time frame to submit a claim? How do I?
Claim to be submitted to the local agent on collection of the vehicle. No claims will be accepted after the vehicle has been with the client for more than 2 hours.
17. Is there a car warranty?
No, however if your vehicle does not arrive in the condition you bought it in, you can submit a claim. Kindly, contact your insurance company (provided by the bank) on vehicle insurance.
18. What are the advantages of buying a used car?
• Buying a used car will be significantly cheaper.
• If you buy a used car, the reduced purchase price results in lower finance costs and lower insurance premiums.
• You could potentially still benefit from the balance of the motor plan and warranty which will be transferred with the car.
• You have a far wider choice of vehicle when buying a used car and can consider older models and a wider variety.
19. Is it more expensive to insure a new or old car?
It’s typically cheaper to insure an older car. Older cars are less valuable. They don’t have the same safety features as newer cars. However, insurance prices can vary widely between new and old vehicles
20. Should I consider doing a balloon payment?
It is completely up to you and Stanbic allows this an initial balloon payment will make your monthly instalment amounts lower.
21. Are there any disclaimers I need to be aware of in my car finance contract?
In order to apply, the client must:
• Be 18 years or older
• Be a local citizen
• Have valid identification documents
• Be a Stanbic Bank client (if not an existing client, the client may register as one in few easy steps with the assistance of a Stanbic Banker)
• Pass a credit check
In order to proceed with application, the client must have proof of below documents:
– Pay slips for 3 months (Proof of income)
– Identification documents
– Proof of address
– Supplier invoice – Vehicle Details
The vehicle selected for purchase must:
Kenya
o Comply with the Kenya Bureau of Standards requirements of Legal Notice No. 78 of 15th July 2005 (Verification of Conformity to Kenya Standards Imports Order, 2005) and KS1515:2000 Kenya Standard Code of Practice for Inspection of Road Vehicles.
o Be less than 8 years old from the year of first registration
o Be subject to roadworthiness inspection by a KEBS appointed inspection agent in the country of export
o Be a Right-Hand driver
22. Can I return a car after I have bought it?
Yes. Stanbic Finance is on unsecured loan basis and therefore allows you to trade in your car as long as the instalments are being serviced promptly.
23. Will I receive a refund if I don’t want to purchase anymore?
Yes, before the car is booked at the port of load, however there is a penalty charge of 30% of the total charge which will be taken out of the total paid by the bank.
24. What is the cut off period to submit payment?
The supplier will reserve the vehicle for a period of 24 hours only. Thereafter the car will become available to other clients.
25. Can I access Stanbic/Avecs financing for vehicles I chose from other suppliers?
Yes