Chase Bank Kenya has unveiled a plan for potential Tuk Tuk (Tri-cycle) owners access financing to purchase new Tuk Tuks through Chase Iman, a Shariah compliant banking system. The product, Chase bank says, aims at empowering the youth and women in business by enabling them own income generating assets.
The product mainly targets the coastal region, which is well known for provision of tuk tuk transport services with majority of people using them to move around from one destination to another.
The Product is a Joint-venture between Chase Iman and Council of Imams of Kenya, who will facilitate promoting and acquisition of the Tuk-tuk Loan facility among the youth and women in the community in the region.
Applicants must hold a Current or Savings Account with Chase Bank and be recommended by the Council of Imams & Preachers of Kenya (CIPK). Interested individuals may also apply directly from the Bank with Vetting/Credit review being done by the Bank’s Credit Relations Officer as per the Bank’s policy. The underlying asset is the TUK TUK Log Book under purchase to be jointly registered with the bank and Car & General will facilitate Joint Registration for the purpose of Vehicle to be Registered and released.
Insurance and Financing
Payment for is done directly to the ventnershdor and the product will be made available under the Murabaha Contract. Comprehensive Insurance for the vehicle will be done through Chase Assurance. Insurance Premium Financing will be done for clients who need to pay premium in installments. C & G says it will provide 5 free services to all the units bought through Chase Bank. This will enable owners to save and generate more income.
The bank will finance a maximum of 74% (KES 285,000) of the invoice amount from Car & General. Repayment for the vehicle will be made on weekly basis with a maximum tenor of 18 months. The purchase price as per C & G is KES 385,000 while Chase Bank will finance a maximum of KES 285,000 and the client will put a down payment of KES 100,000.
The profit will be charged at KES 50,000 on a Flat basis, which is approximately 12% profit rate on the loan amount, for the full tenure of the facility (18 months)