Sterling Bank, TATA Motors target SMEs in auto finance partnership

Sterling Bank Nigeria Plc in partnership with Asian leading car manufacturer TATA Africa Services (Nigeria) Limited has entered into automobile finance partnership with a view to providing easy and affordable facility for Small and Medium Scale Enterprises (SMEs), who wish to acquire various brands of vehicles in the fleet of the auto company.

In line with the plan of the Federal Government to diversify the economy as a result of declining revenue generated from crude oil exports, Sterling Bank has taken a bold step to champion auto finance initiatives by partnering with various car manufacturers, especially to finance the purchase of locally assembled vehicles.

Speaking to journalists, the Executive Director, Retail and Consumer Banking, Sterling Bank, Grama Narasimhan said the event signifies both document signing ceremony and launching of partnership between TATA Motors and Sterling Bank.

“What we are offering here is for SMEs, structured in such a way that it is easy for people to invest. It offers good interest rate, tenure and durable products which are one of the best in the market,” Narasimhan said.

Explaining the features of the auto loan, Narasimhan said the offering comes with 20 per cent down payment and service parts for two years. Other features according to him are:  monthly installment of N468, 000 for an LPT1618 10 tons truck; 36 months tenure for large load body area truck of 3.8 square meter with N210,000 instalmental  payment; while monthly repayment amount for  other lower vehicles begins from N136,000.

TATA Motors recently rolled out 200 locally assembled vehicles, which the company said were made to suit the Nigerian terrain and were cost effective.

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According to the partnership agreement signed last weekend in Lagos, Sterling Bank will provide auto finance to prospective customers willing to acquire any brand of TATA Motor Vehicles.

He further explained that the partnership was informed by the current economic headwinds and the need to assist startups in their logistics needs.

Also speaking at the unveiling ceremony, the Auto Head, TATA Motors Ltd, Mr Suraj Prakash said the partnership is a special Ramadan Offer that will usher in other special offers in future.

According to him, the company continues to ensure adherence to local content to ensure availability of cost effective cars in Nigeria.

“It is an honour to us to have succeeded in this phase of document signing ceremony. The partnership will bring prosperity to the people, help businesses to grow and in general, contribute to the growth of the Nigerian economy. In this partnership, we are taking calculated steps to ensure that it is a success. Our vehicles are well assembled and cost effective. Our vehicles are durable, up to standard and made for the Nigerian terrain,” Prakash stated.