Leading commercial bank, 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 in Lagos at the weekend. 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, Mr. 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, Mr. 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,” Mr. Narasimhan explained.
Commenting on the initiative, Mr. 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, Mr. 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.”
Yemi Odubiyi, Executive Director, Corporate and Investment Banking, Sterling Bank, said the partnership with TATA Motors Limited is in line with the bank’s intervention in sectors of the economy with the potential to create jobs and bring about economic growth for the country. Remarkably, Tata is currently working on 1000 locally assembled vehicles as part of the effort to transit the transport sector from full import dependence to manufacturing with technology transfer to local players.