There are four factors that you need to consider for how much money you can borrow against your car in Kenya. They include the following:

• The value of your car
• Its condition and age
• Your capacity to repay
• And your lender’s loan-to-value (LTV) policy.

Let’s take an example of that. For a new car, Mwananchi Credit will finance up to 80% of the car’s assessed value. Your car is worth KSH 1,500,000. The loan you can potentially access would be up to KSH 1,200,000.

Continue reading to learn about how this applies to various rates of cars, what influences how much you’re able to borrow, and ways to get a better estimate.

How Much Can You Get From a Car-Secured Loan?

There is no fixed percentage for each borrower. The make and model of your vehicle is a major factor in your rate.

Mwananchi Credit’s lending bands are based on vehicle condition. The amounts available for a borrower at each stage are illustrated below (in the case of a car valued at KSH 1,000,000).

Vehicle Condition	Loan-to-Value (LTV)	Example (Car Worth KSH 1,000,000)
New (under 5 years)	Up to 80%	Up to KSH 800,000
Mid-age (5–10 years)	50% – 70%	KSH 500,000 – 700,000
Older (10–15 years)	30% – 50%	KSH 300,000 – 500,000

This top-of-the-line is a new, popular model that is in good condition. An older car or a car that is driven for longer periods of time will tend to sit lower.

How Is Your Car’s Value Determined?

For most borrowers, the initial question is “How much is my car worth? How much is it worth?”

Before this question can be answered, a qualified valuer looks at your car and benchmarks it with similar cars on the Kenyan market. Valuation usually considers:

• Make and model
• Year of manufacture
• Current market value
• Mileage
• Vehicle condition
• Service and maintenance history
• Accident history
• The demand for vehicles
• Availability of spare parts
• Any existing loan or encumbrance
• Current ownership and registration status

There may be two cars that are subject to two different values. This will typically increase the value of a vehicle with a low mileage count and in good condition.

What Percentage of Your Car’s Value Can You Borrow?

It is known as loan-to-value, or LTV. It’s the ratio that a lender uses to determine the maximum amount that they can lend against your car’s assessed value.

The formula is a straightforward one:

Maximum loan amount = Appropriate LTV x Assessed vehicle value.

You have, for instance, a car worth KSH 1200,000. In the case of a new vehicle, Mwananchi Credit can finance up to 80% of that amount. The amount of a potential loan would be KSH up to 960,000. Older and/or higher-mileage vehicles would be in the 30-70% range.

Most of what you can borrow is determined by this one calculation. All other guides in this compilation are based on it.

What Affects How Much You Can Borrow?

The range is determined by the value and age of your car. There are a couple of other things that determine your spot within it.

Factors	How It Affect Borrowing
Vehicle value	A higher value can support a larger loan
Vehicle age	Older vehicles fall into lower LTV bands
Condition	Poor condition can reduce the assessed value
Mileage	High mileage can lower the valuation
Income	Determines your ability to repay
Existing obligations	Other debts can affect affordability
Ownership documents	Your paperwork must meet lender requirements
Vehicle demand	Popular models tend to hold their value better

Your car unlocks the car door. The extent to which it opens depends on your income and documentation.

Can I Get a Car-Backed Loan Without Giving Up My Car?

Yes. However, at Mwananchi Credit, your logbook is the only security that you need to consider. You can continue to drive your car for business or personal transportation until the end of the loan. Unlike a complete trade-in where you would give up the car, this is the case with a partial trade-in.

With that said, make sure you are making payments on time. Even if you miss a payment, you could still have your vehicle repossessed.

How Does Vehicle Valuation Work for a Car-Secured Loan?

A qualified and independent valuer checks your vehicle before Mwananchi Credit confirms the loan amount to be issued. They add or subtract from the market price of the same type of car to determine its value on the current market in Kenya. This step will determine the entirety of your loan offer.

Desire a comprehensive view? Discover exactly what the assessors are looking at and why with our guide to How Vehicle Valuation Works in Kenya.

Example: How Much Could I Borrow For My Car?

Below are 3 quick scenarios considering Mwananchi Credit’s published bands of LTV.

Example 1 — New vehicle (under 5 years) Car value: KSH 800,000 LTV: Up to 80% Potential loan: Up to KSH 640,000

Example 2 — New vehicle (under 5 years) Car value: KSH 1,500,000 LTV: Up to 80% Potential loan: Up to KSH 1,200,000

Example 3 — Mid-age vehicle (5–10 years) Car value: KSH 1,500,000 LTV: 50% – 70% Potential loan: KSH 750,000 – 1,050,000

These numbers are only a starting point, they are not a promise. The actual approved amount is subject to vehicle valuation, affordability, document verification and Mwananchi Credit’s terms.

What If I Need More Than I Can Borrow For My Car?

Occasionally, the amount you need is less than what you are expecting. It’s not limited to the value of your car. Mwananchi Credit also takes into consideration:

• Your affordability
• Your preferred repayment period
• Any existing debts
• Internal lending limits
• Your vehicle’s eligibility

When the car itself doesn’t reach you, have a conversation with our team and do not take it for granted that the door is closed. Estimate your figure first using our borrowing calculator and then apply.

How Much Will My Monthly Repayment Be?

The amount of loan that you can qualify for is just one half of the picture. Your monthly repayment will be based on the amount borrowed, interest and fees applied, and the term of repayment.

All set to view your numbers? Use our car loan repayment calculator Kenya to estimate your repayment schedule.

FAQ’s

How much can I borrow against my car in Kenya?

Mwananchi Credit finances up to 80% of your vehicle’s assessed value for new cars, and 30–70% for older ones.

How much can I get from a car-secured loan?

Mwananchi Credit’s bands run from 30–50% for older vehicles up to 80% for new ones.

Can I get a loan based on my car’s value?

Vehicle value matters, but Mwananchi Credit also checks your income, documents, and existing debts.

How is my car valued for this type of loan?

A qualified, independent valuer assesses your car’s make, model, age, mileage, condition, and market demand.

Can I borrow more if my car is worth more?

Generally, yes, subject to your vehicle’s age band and your affordability.

What happens if my car still has an existing loan?

It can affect your eligibility and reduce how much you’re able to borrow, so disclose it upfront.

Ready to find out your number? Use our borrowing estimator above, then head to our repayment calculator to plan your monthly payments.