In Kenya, the majority of vehicle owners can secure financing using their vehicles. This includes employees on a salary, self-employed individuals, business owners, and SMEs. You don’t need to have a specific credit score to qualify for a vehicle. It depends on your income, your documents and your vehicle.

Kenyans opt for this form of financing as it is quicker compared to bank financing. Also, this is appropriate for sources of income that banks may not accept, like cash-based businesses. The outcome will depend on each application and not on a checklist. Mwananchi Credit will review the situation on a case-by-case basis.

Before applying, read these tips to prepare yourself.

Who Can Apply for Vehicle-Secured Financing?

Mwananchi Credit caters to a host of borrowers in Kenya. There are usually two types of applicants:

• A person who receives a regular salary, typically a steady income.
• Self-employed and has a steady cash flow in the business.
• Registered business owner or SME
• An owner of a clean and unencumbered logbook

Having good credit is not mandatory here. A credit score is not the only thing that matters; it’s your vehicle and your ability to pay it back. This is important because some people may not be eligible for a bank loan. Such as boda boda operators, matatu drivers, or small traders who work on a cash basis. Mwananchi Credit considers every application on its own merits, and your circumstances always matter.

Basic Eligibility Requirements

The following are the four basic conditions that will determine if you’re eligible:

1. You own the vehicle that you register in your name or that has authority documents and that you use as security.
2. A logbook free of existing charges at NTSA.
3. Evidence of consistent income (as appropriate for your situation).
4. A car that is old enough and in good enough shape to be eligible for Mwananchi Credit.

If an applicant meets these 4 points, then the committee will likely approve him or her.

Documents You’ll Need

Have these prepared before applying:

• National ID
• KRA PIN
• Vehicle logbook
• Bank or M-Pesa statements (last 3–6 months)
• Proof of income
• Comprehensive insurance

Preparing documents beforehand hastens your approval.

Eligibility for Employed Applicants

In the case of employment, your payslips and bank statements are the key. Mwananchi will verify your income and expenses to ensure that you would be able to afford repayments. A consistent work history is a plus in your application.

Eligibility for Self-Employed and Business Owners

No payslips required. Instead, a self-employed person or business owner can use bank statements, M-Pesa statements, or business records. Mwananchi Credit does not only consider the cash flow of a particular month but also the period.

If you register your vehicle for your business, you’ll also need a letter of authority.

What Makes a Vehicle Eligible?

There are some requirements for the car:

• The mechanical condition is good, with no major mechanical problems.
• Mwananchi Credit’s lending policy has established a proper age range
• No disputes or pending charges on a clean logbook
• A fair market value, substantiated by a third-party appraisal.

Popular and well-maintained models are easier to finance and are likely to have better terms.

Who Might Not Qualify?

There are a few circumstances that impact eligibility:

• Any unresolved dispute or charge on the logbook
• No evidence of regular earnings
• An older vehicle, or one that is too old or in poor condition.
• Lack of or poor quality documentation

There are no lasting barriers to any of these. Often, you only need resolution and a reapplication.

Conclusion

There are three key requirements for being eligible for vehicle secured financing: the vehicle, income and documents. Mwananchi Credit considers every application individually, and not on a checklist. Prepare the documents, ensure your car is fit for the task, and you’re ready to apply.

FAQ’s

Who can be eligible for vehicle-secured loans in Kenya?

All salaried employees, self-employed individuals, business owners and small and medium enterprises are eligible, as per their income and the condition of the vehicle.

Do I need to provide a payslip to qualify?

Self-employed applicants may use bank statements or business records instead of this.

Is it possible for a company to use a company car to apply for?

Yes, but with a letter of authority stating that the lender can use the vehicle as security.

Are there age restrictions on my car?

Yes. We still accept older cars, but typically at a lower financing percentage.

What is the reason for a vehicle to not be eligible for financing?

An unresolved logbook dispute, pending charge(s), or a vehicle not within the range.

How many days will it take to determine my eligibility?

Once you have submitted your documents and vehicle information, Mwananchi Credit will confirm your eligibility within a day.