Ecobank partners Allianz Insurance to offer Auto loan scheme

Commercial lender, Ecobank Ghana, has in partnership with selected automobile dealers and Allianz Insurance launched an Auto Finance scheme to empower workers to acquire new and used vehicles.

Dubbed the “Ecobank Auto Finance Scheme” is targeted mainly class aspire to get either brand new cars or five-year-old used cars and repay over a period of five years.

The offer comprises highly reduced interest rates on auto loans by the bank and significantly discounted vehicle prices from each of the nine automobile dealers.

The nine car dealers are Japan Motors, Autochek, Toyota Ghana, Silver Star Auto, Stallion Group, MAC Ghana, Universal Motors Limited and Premium Motors.
Managing Director of Ecobank Ghana, Mr Dan Sackey said the decision to initiate the scheme was based on the fact that the country’s automobile industry is currently estimated at $4 billion and it is projected to reach $11 billion in the next five years.

“This projected growth is, to some extent, attributable to the government’s transformational agenda, which has identified Vehicle Assembly and Automotive Components Manufacturing as a strategic anchor for growth and development.

Imported cars

“The automotive sector in Ghana generally consists of imported used cars from retailers, as well as wholesalers who deal in the sale of new vehicles. As one of Ghana’s most recognised, respected and high performing financial services brands, Ecobank has joined Allianz Insurance and various other auto dealers in our resolve to provide our customers with the very best deals through partnerships.”

Mr Sackey stressed that by partnering the selected automobile dealers in Ghana, Ecobank was offering its customers yet another outstanding package under Ecobank Auto Finance.

“We believe the affordable finance will drive demand and keep the industry thriving as customers also get the opportunity to own the dream cars,” he added.

Chief Finance Officer and Executive in charge of Consumer Banking, Dr Edward Botchway said, the automobile companies are ready to offer discounts of between two to 10 per cent on vehicle prices, while Ecobank is also offering discounts of 19 per cent or more on interest rates to make it easy for customers to buy their dream cars.

“We present Ghana with one of the biggest offers in terms of Automobile Finance in the banking industry. For the first time, Ecobank has brought together many automobile dealers with a variety of vehicle brands to meet the needs and lifestyles of Ghanaians at very competitive and affordable rates”, he said.

“At Ecobank, we are determined to consistently provide our customers with the best offers, targeted at the lower, middle and upper segments of the market. By this, we are ensuring that every individual, including the first-time car buyer, can take advantage of this offer to own a vehicle of your choice at an affordable price”.

Existing fleet

He further indicated that the offer was also available to corporate organisations who may want to make additions to their existing fleet.

Non-Ecobank customers are also eligible to apply. The loan tenure is up to five years and no initial down payment is required.

Dr Botchway encouraged Human Resource and Administrative Heads also to take advantage of the offer to support their staff members to acquire their dream cars, as this will give them the required peace of mind to work productively.

Dr Edward Botchway emphasized that the “The combination of factors that make this offer exciting and compelling include; the substantially discounted car prices by the auto dealers, highly reduced interest rates by Ecobank, quick turnaround time and long term savings over the useful life of the vehicles.”

Prospective buyer

Head of Personal Banking at Ecobank, Mr Kwesi Attobrah indicated that all it takes is for a prospective buyer is to pick a proforma invoice from any of the partner dealers, present the invoice to a Relationship Manager at any branch of Ecobank, together with a duly completed loan application form.

The bank will process the application and provide feedback within 48Hrs, after which the dealer will be informed to proceed with the vehicle ownership transfer process.

“The scheme is designed to offer a maximum of $80,000 for a car, but if a customer’s monthly salary can support the regulated 50 per cent debt service for a $100,000 car loan, the bank is willing to consider that”, he stressed.

He also explained that even a worker with a GHC1,500 can get a car loan of between GHC25,000 to GHC30,000 repayable over the five-year period at the stipulated 50 per cent debt service ratio.

Kwesi Attobrah said to qualify for the scheme, one needs to hold a current account with Ecobank and one must have his or salary passing through that account, adding that for new customers, one would need to send at least a month’s salary to that account to qualify for the loan.

He said even though the repayment period is five years, for those who will do comprehensive insurance with the insurance partner of the scheme, Alliance Insurance, the bank will give them an additional one year to pay off the loan.