Digital bank Vbank and automotive technology company Autochek have partnered to provide quicker and easier auto loans to customers in Nigeria.
With their new loan origination and offtaking partnership, the companies will provide an answer to loan applications within 48 hours and will offer competitive interest rates, according to an Aug. 25 press release.
“We wanted to create a product that would make the most of our combined expertise to deliver real change in how people across Nigeria access financing for their vehicles,” Autochek Senior Vice President, West Africa Mayokun Fadeyibi said in the release.
An algorithm from Autochek speeds the handling of customers’ documentation and the loan processing, while the range of financing products available from VFD Microfinance Bank, which powers Vbank, provides access to competitive interest rates, according to the press release.
“Additionally, providing financing opportunities to businesses helps them reduce the amount of cash tied up in vehicle finance, which improves cash flow and helps these businesses grow faster,” VFD Microfinance Bank Managing Director Gbenga Omolokun said in the release.
Beyond this, Autochek and Vbank also plan to create an auto loan securitization product.
The announcement of this partnership comes about four months after Autochek acquired Moroccan automotive technology startup KIFAL Auto as part of a plan to expand into North Africa.
Read more: Autochek Adds KIFAL Auto To Expand Into North Africa
Five months before that, Autochek announced the launch of a dedicated new cars section on its website and mobile app, allowing customers in East and West Africa to access a variety of digital financing options to purchase new cars and trucks.
See also: Car Loans Marketplace Advances Automotive Commerce Across Africa
“With traditional loan application systems, you make one application and select the bank you want to apply to,” Autochek CEO Etop Ikpe told PYMNTS at the time in an interview. “[But] in our case, you make one application, and it goes to all the banks and they have a chance to make you an offer.”
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