Motor Import Financing In Kenya

Motor Import Financing

Introduction

Motor import financing in Kenya is a common way for people to purchase motorcycles and automobiles. While it may seem like a complicated process, the steps are actually very simple at Mwananchi Credit Limited Company. If you know what to expect and understand how it works, getting your motorcycle or car financing will be easy! 

It is not a secret that there are many people in Kenya who love to ride motorcycles. In fact, motorcycle imports have been on the rise for quite some time now and continue to increase each year. However, this can be a challenge for those looking to finance their motorcycle purchases. To address this issue, we will discuss motor import financing options available in Kenya as well as how you can apply online today! 

What is motor import financing in Kenya?

Motor import financing is a quick loan option used to cover port expenses on behalf of products or cargo importers.  The goal is to prevent delays by facilitating speedy duty charge payment at the Kenya Revenue Authority (KRA) as well as other government bodies. It’s essentially a form of short-term finance given by a third party.

Import financing transactions usually put a strain on a financial statement due to the obvious inefficiencies and complexities that typically occur at the port, requiring money to be paid out since the items are delivered. Fluctuating freight rates and import taxes add expenses and unpredictability to the operation, in addition to the cash-flow strain.

International commerce has contributed to a rise in demand for import finance in Kenya in recent years. What is causing this? Importing certainly has numerous advantages, such as reduced pricing and higher quality items or automobiles. However, the problem of funding persists, leaving enterprises with insufficient working cash.

The factors to consider when applying for motor import financing

Price of Purchase – This one may appear to be self-evident, but there’s more to it than meets the eye. The difference between a Kshs 5,000 and Kshs 8,000 motorcycle isn’t 3,000; it’s Kshs 3,000 plus the loan’s extra interest. The overall cost throughout the life of the loan will be much greater if the higher price means you stretch the terms out for 6, 12, or 18 months longer than you would have otherwise.

Interest Rates and Down Payments – Motorcycles aren’t as costly as automobiles or trucks in general, but a good bike may cost Kshs 10,000 or more. Let’s use round figures and suppose you pay that much for one. You’ve been saving for a while and are able to put Kshs1,000 down. Kshs 9,000 is left to finance.

Motorbikes: Original vs. Refurbished

Purchasing a secondhand motorbike might save you a lot of money on your motorbike loan. Because used machines are often less expensive than automated machinery, you’ll be able to finance less and pay it off faster. Used bikes degrade more gradually than new motorbikes, and you’re also less likely to get a mortgage.

The benefits of motor Import financing your purchase

benefits-of-motor-import-financing
benefits-of-motor-import-financing

Better options – If you just intend to pay cash, you will be limited in what your cash lump amount can cover. With financing, you may select the bike of your dreams and have it delivered to your home the same day.

Spread out costs — Once you’ve established a financial arrangement, you may begin making monthly payments. This implies that your payments will be stretched out over a longer period of time, making it much simpler to come up with the funds at the end of the month. Making your payments will be a piece of cake if you have regular full-time employment.

There will be no surprises – Your payment arrangement will spell out exactly what is expected of you, as well as the exact set monthly amount due and when it is due. If that date does not fit your financial situation, these financing providers can gladly work with you to adjust the payment date to a more convenient one.


Better credit history — Taking out a motorbike financing arrangement leads to enhanced your credit score, which will make it possible to create further purchases later on in life. A strong credit score is extremely beneficial whether applying for a mortgage or purchasing a car.

Motor  import financing companies in Kenya

We at Mwananchi Credit Limited are motorcycle lovers, and nothing makes us happier than assisting our customers in finding the right motorcycle for them. If you’re thinking about financing your new motorbike, our finance department can help. We are ecstatic to have the opportunity to assist you in putting together a finance plan that will get you on the road.

Don’t put off your aspirations; our expert financing staff is here to make the process of acquiring your motorbike as simple as possible. Come in and speak with us right now! When you turn the key on your new Honda, TVS, or Yamaha motorcycle, you’ll know you made the correct decision.

How to get an affordable motorbike loan with low interest rates and high approval rates

Mwananchi Credit Limited offers Boda Boda loans that are simple to obtain, but they come with their own set of terms and restrictions that must be followed. You are given a paper to read that contains all of the terms and conditions before agreeing to get the funds. Before you sign and accept a BodaBoda loan, take your time to read the fine print.

Other requirements include a six-month Mpesa or bank statement, as well as identification papers such as a driver’s license or passport. Most lenders will only consider you if you are between the ages of 18 and 50. You’ll also need the following items:

  • Mwananchi does not require an active financial account with a bank or other commercial institution with three months’ worth of transactions.
  • A valid rider’s license is required.
  • Demonstrate your ability to repay the loan.
  • To acquire the 70% boda loan, you’ll need to contribute around 30% of your bike’s cost.
  • Possess a KRA pin
  • At least two referees should be present.

Frequently Asked Questions (FAQ)

What’s the process of importing a Motorbike in Japan?

Motorbikes in Japan are just as popular as automobiles, buses, trucks, and machines. Honda, Yamaha, Suzuki, and Kawasaki are just a few of the world-famous motorcycle manufacturers in Japan. Because local brands have no market share in their home nation, several countries impose limitations. However, people continue to be drawn to Japanese motorcycles.

These motorcycles range in size from under 50cc to over 250cc. There are bikes available to meet everyone’s requirements and preferences. In most places, these brands are so well-known that alternative motorcycle brands are hard to get by. The popularity of these Japanese manufacturers is attributed to their design, performance, safety, mileage, longevity, and readily available components.

How you can get Motor Import Financing in Kenya?

Get motorbike financing at Mwananchi Credit Limited Company for the best offers with flexible interest rates. The special offers just for you are A comprehensive motorcycle insurance policy, a bike equipped with a monitoring device, and a low daily cost of KES 300. The following are the characteristics of motorcycle financing:
3.5 percent per month interest rate Fee for processing: 4% KES 250 CRB application fee KES 300 in fees
KES 7,600 for comprehensive insurance (Strictly by Shimin Insurance Agency)
Credit Life Insurance: 1% Tracking Fee: KES 10,000
The maximum loan payback period is 18 months. 
Repayments are made on a daily or weekly basis. 
Mpesa Paybill Number is the method of payment.


What is the difference between motorbike Loans and credit lines?

Motorbike loans are a type of specialty loan that some banks, credit unions, and internet lenders provide. They might be secured or unsecured, depending on the lender, although lending rates have a higher rate of interest than secured debt. 

A credit line (LOC) is a set amount of money that may be borrowed anywhere at the moment. In the case of a potential line of credit, the lender can accept funds out as required till the maximum is reached, and when money is repaid, it can even be obtained repeatedly.

What are the types of motor import Financing in Kenya?

The types of motorbike loans in Kenya mainly: 

Purchase of a rental – The simplest method to buy a motorcycle is to use a hire purchase scheme. Find the final, on-road price once you’ve decided on a bike. We will give a quote from a lender on our panel after we have found the best price for you based on your specific circumstances.

PCP stands for “Personal Contract Purchase.” – PCP is a wonderful alternative for individuals who prefer to maintain their motorcycles up to date. This form of financing allows you to upgrade your motorcycle after a few years.

Loan for personal use – A personal loan is another possibility. The benefit of a personal loan is that the lender has no say over where you put the money; all they care about is that you pay it back.

Tips for applying for a motor import Financing in Kenya?

Prove That You Are Not At Risk.
Your credit rating will increase if you demonstrate that you are a good risk, which will save you time and money. Before visiting a credit provider, keep the following in mind:

Consider the amount of money you want to borrow carefully. 
Select a value that is both practical and within your budget.
Credit companies regard new or nearly-new motorcycles to be a safer investment, and they may be used as collateral to get a motorbike loan. 
Because of its poor resale value, getting a loan for an older bike is more difficult.
Credit lenders prefer borrowers who have a steady jobs.
 If you can show continuous employment over a lengthy period of time, you’ll have a greater chance of getting approved.

Verify Your Credit History
Before discussing a loan, Mwananchi Credit Limited would want to check your credit history. Check your credit file and credit ratings with previous credit providers, and if there are any errors, make sure they are corrected before the current credit provider conducts its own investigation. Your bank account and income should show that you have the financial means to make payments. Furthermore, if you can demonstrate a history of saving, you will be in a much better position.

Search For The Best Value
Request that potential credit providers lower their prices. It is not a sin to try to get a better price. Finance is a competitive industry, much like the new business and used-car markets. Providers of credit should compete for your business.

Several bankers and lenders advertise a low rate without disclosing any additional fees or penalties. This is frequently deceptive, resulting in substantially greater repayments and a much personal loan. Before choosing which loan is best for you, make sure you analyze all of the costs

Conclusion

When you’re in Kenya, it is important to have a motor vehicle. Whether you’re looking for an affordable car loan with low-interest rates and high approval rates or just want to find the cheapest financing option available on Kenyan soil, there are plenty of options out there that will fit your needs. We’ve given tips throughout this post about how to get started with importing vehicles from Japan, the United States, and Europe; choosing motor import financing; understanding what to look for when comparing different companies’ offers; and more! Get in touch if we can help provide any guidance as you make these decisions.

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