Absa Bank Tanzania Introduces Vehicle Asset Finance Solution

DAR ES SALAAM: Absa Bank Tanzania has introduced  Vehicle Asset Finance (VAF) aimed at making car ownership more accessible and affordable for Tanzanians.

This medium-term financing option allows customers to purchase new and used vehicles from local dealerships without needing the full purchase price upfront.

This solution reflects on the bank’s strategic focus on providing financial solutions that resonate with its customers’ lives and aspirations.

Speaking at a launching service in Dar es Salaam,  Head of Retail Banking at Absa  Bank Tanzania,  Ms. Ndabu Swere , the bank decided to come up with the solution to help its customers afford purchasing a car.

“We understand that purchasing a car is not easy because cars are not cheap, and since people are not always liquid, they may need assistance from somewhere and especially when car dealers need upfront payments. So, this is where Absa Vehicle Asset Finance comes in.

Absa VAF offers financing of up to 90 per cent for brand new cars and up to 80 per cent for used cars, with the vehicle serving as collateral.

The product allows customers to obtain funds to purchase a vehicle of their choice at the time when they wouldn’t have all the funds upfront.

“It frees the customer’s cash, leaving them with more flexibility to either invest or use their savings for any unforeseen costs that may come up during the year”,she said.

A customer gets an instant access to the car as soon as the bank completes the VAF loan process.

“ It reduces the financial burden on the customer by allowing the customer to spread the cost over time with smaller regular payments with the customer only needed to provide a small amount upfront”,said Ms Swere

The solution is designed to provide customers with immediate access to their desired vehicles while freeing up their cash for other investments or unforeseen expenses.

On his part,Marketing and Communications Manager ,Mr. Beda Biswalo said is a business strategic addition to the bank’s offerings.

Also read: https://dailynews.co.tz/absa-launches-mobile-phone-app/

“At Absa we care deeply about the stories of our customers and the progress they make in life… We are inspired by our customers’ journeys and want to be part of their scripts, part of the true stories they will tell for years to come when they narrate their success journeys”, he said.

To access the facility, a customer needs to identify a vehicle they are interested in buying from one of Absa’s carefully selected car dealers.

The customer will  then apply for a VAF facility through bank’s loan officers.

“We then assess the customer’s application, if the customer qualifies they will be asked to make a downpayment into an Absa account, Absa will make the full payment (downpayment + remaining balance) to the car dealer, the customer will be handed their car to enjoy their new ride”, Ms Swere explained.

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