Construction Equipment & Yellow Goods Financing
What You Need to Open an Account
The requirements are as follows:
Copy of Directors IDs and PINs
Copy of Company PIN
Copy of Certificate of incorporation
Copy of memorandum & articles of association
Copy of latest audited accounts where annual turnover exceeds KES 50 million (Not applicable for amounts below KES 10 million.)
Proforma invoice/asset sale agreement obtained from dealer/sellers
HP applications form duly completed
Company profile (if readily available)
Contract copies (if readily available).
Latest 12 months certified bank statements.
Key Features
Flexible asset financing for qualifying new and used construction equipment and yellow goods:
1. For New Equipment
- Up to 80% financing, subject to the equipment value, approved supplier, your contribution and DTB credit appraisal.
- Repayment period of up to 72 months, with monthly or quarterly repayments based on the approved facility terms.
- Competitive interest rates confirmed in the approved facility offer.
2. For Used Equipment
- Up to 70% financing, subject to valuation, condition, age, supplier or seller verification and credit appraisal.
- Repayment period of up to 60 months, subject to the remaining useful life of the equipment and your repayment capacity.
- Used construction equipment of up to 15 years may be considered, subject to the asset type, condition, maintenance history, valuation and DTB approval.
- A copy of the applicable ownership document or logbook is required.
- Competitive interest rates confirmed after appraisal.
Note
All financing amounts, margins, repayment periods and rates are subject to DTB credit appraisal, asset eligibility, valuation, supplier or seller verification, documentation and the applicant's ability to repay. Financing is available to both DTB and non-DTB customers. Eligible applicants may also apply for Insurance Premium Financing to spread the cost of approved insurance premiums. Terms and conditions apply.
FAQs
Max 100%, depending on the asset type, age, vehicle purpose and customer’s ability. Ideally not lower than Kshs 300k as an industry practice. Core capital and industry limits on maximum.
Loan interest, processing fees, credit life, valuation, insurance plus renewals, tracking for loan term, etc.
Maximum 72 Months for new vehicles depending on type/model & age, and 84 for school buses. Payments may be monthly, quarterly, termly for education sector, or aligned to the customers’ revenue cycles (e,g in farming).
Max 8 years for vehicles & up to 15 for Yellow Goods.
Margins & tenor maybe adjusted for assets outside this age bracket with mitigants additional securities, margins or tenor.
All moveable Capex assets- Vehicles, equipment (construction, medical, industrial), plant, aircraft, etc.
48 to 72 hours where documentation is complete, & one week for corporate cases.
KYC, Financials & support documentation for specific requests- Employees, contractors, schools, Traders, etc
Engage the Bank, for restructure where justifiable. You may consider disposing off the asset.
The Asset (logbook) is the primary security; then contract, guarantees, Insurance, or other conventional additional collaterals.
Yes, even several: if your ability to repay and track record are intact.
No, you instead safe on interest and improve track record.
No, until the last cent is cleared. You are also exposed to interest penalties for default and administrative charges.
Yes, in liaison with the bank. It affects the logbook, contract & Insurance class.
Yes, as a Sale and valuation done. Notify the bank, so that all proceeds are assigned accordingly, shortfalls addressed & clear asset value determined. Avoid ‘Sukuma deni’ which is very risky.
The Bank, until the loan is fully paid/ insurance claim paid in case of accident / or auction.
Report to the insurance company, and the bank. You are however expected to continue with loan service, to preserve track record and avoid interest penalties.
This is annual, and value/premiums determined every year through a valuation. The bank can offer IPF for up to 10 months.
This covers the customers death, permanent disability, critical illness, last respect and retrenchment for employees.
