Ecobank Ghana in collaboration with Alliance Insurance has launched a car loan scheme designed to give customer “heavy” discounts on car prices and equally significant reduction on interest rates on loans.
The scheme, dubbed “Ecobank Auto Finance Scheme” is target at mainly young working people who wish to get either brand new cars or five-year-old used cars and repay over a period of five years.
To deliver on the deal, Ecobank has put together a group eight renown car dealers in Ghana, who deal in a wide range of highly reputed brands, which customers can choose from.
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, Dan Sackey noted that the decision to initiate the scheme was based on the fact that Ghana’s automobile industry is currently estimated at US$4 billion and it is projected to reach US$11 billion in the next five years.
He noted that the growth is backed by the vehicle assembling plants, the manufacture of vehicle parts which recently took off in the country coupled with the heavy vehicle import (70 per cent) industry in the country.
Dan Sackey noted that Government focus on the automobile industry indicates strong statal interest and confidence in potential for growth.
“This makes the automobile industry very important and therefore there is a need to begin to provide the financing to back the retailers, wholesalers and users of these vehicle,” he said.
He said it was on the basis of the need for finance that Ecobank is introducing the most affordable car loan scheme with the most competitive interest rate in the country, adding that “we believe the affordable finance will drive demand and keep the industry thriving as customers also get the opportunity to own the dream cars.”
Head of Consumer Banking at Ecobank, Dr. Eddy Botwe said Ecobank is working with at least nine automobile companies ready to offer discounts of between 2 to 10 per cent on vehicle prices, plus 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 designed this scheme with all the discounts to enable people at the lower, middle and upper classes of the country to afford cars and pay off over a five-year-period without stress,” he said.
Stating the advantages of the scheme, he said the prices are heavily discounted, interest rate on loans is heavily discounted, customers get to save on initial purchase as there is no initial deposit, and customers also get to walk away with very efficient cars.
He said Ecobank is also concerned about climate change so they are only going for cars that would have little to no adverse impact on the environment.
“The cars are in stock and discounted finance is here – there is no reason why you cannot own you dream car,” he said.
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Head of Personal Banking at Ecobank, Kwesi Attobrah said the scheme is designed to offer a maximum of US$80,000 for a car, but if a customer’s monthly salary can support the regulated 50% debt service for a US$100,000 car loan, the bank is willing to consider that.
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% 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.
Kwesi Attobrah said interest person can either call toll free on 0800003225 or visit any Ecobank branch for assistance.