Stanbic Bank. FILE PHOTO | NMG Stanbic Bank Kenya #ticker:CFC has restructured Sh1 billion car loans in the wake of Covid-19 pandemic, pointing to the impact the health crisis has had on vehicle and asset financing business.
The lender says the amount relates to 460 vehicle owners who have applied for an extension in repayment period. This means the average cost of the vehicles involved is Sh2.17 million.
“Our vehicle and asset financing unit has supported restructures to more than 460 vehicle owners worth approximately Sh1 billion,” said CEO Charles Mudiwa in response to the Business Daily questions.
“We are currently living in a time of uncertainty and unprecedented disruptions that has threatened a lot of business activities and livelihoods.”
The restructured car loans make up about 6.6 percent of Stanbic’s Sh15.15 billion vehicle and asset financing loan book segment. Kenyans offered quota in Airtel, MTN Uganda shares purchase
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Stanbic had restructured Sh31 billion loans for individuals, small and medium-sized Enterprises (SMEs), and corporates by end of June.
“We continue to assess the market, discuss with our customers as to how we can support them.
“Some of the help includes requests to enter private treaties,” said Mr Mudiwa.
The lender also granted a three-month repayment holiday on SME loans worth Sh3.5 billion as it to cushion them from the business disruptions resulting from Covid-19.The pandemic has affected businesses and individuals in different ways including reduced cash-flow or broken supply-chains as the state implements measures to stop spread the virus.
