UBA, Mikano Motors launch auto financing scheme with 30% down payment
United Bank for Africa (UBA) Plc and Mikano Motors have introduced an auto financing scheme that allows eligible customers to acquire new vehicles with an initial payment of 30 per cent, while the bank finances the remaining 70 per cent.
The initiative, tagged “Drive Your Dream Today”, was unveiled at Mikano Motors’ showroom in Victoria Island, Lagos, on Monday as part of efforts to make vehicle ownership more accessible to Nigerians.
Under the financing arrangement, UBA will provide funding for 70 per cent of the cost of a vehicle, with customers expected to repay the facility over a period of 36 months at an interest rate of 23 per cent.
UBA said the scheme is open to both salaried and self-employed customers, including individuals who do not have regular monthly incomes.
The bank said interested customers would first undergo an eligibility assessment, after which approved applicants could obtain a proforma invoice from Mikano Motors for their preferred vehicle and proceed with the financing process.
Chidi Okpala, UBA’s group executive director-designate, personal and business banking, said the partnership was designed to make vehicle ownership more attainable for Nigerians while promoting a stronger credit culture.
“Owning a car should not be out of reach for hardworking Nigerians, and this partnership makes it far more achievable,” Okpala said.
He explained that the financing structure enables customers to make a 30 per cent upfront commitment, while UBA provides the balance, which would be repaid over three years.
According to him, the initiative reflects UBA’s commitment to expanding access to credit and developing financing solutions that respond to the needs of individuals and businesses.
Frank Okoh, UBA’s group head, consumer lending, said the scheme was structured to simplify vehicle financing for customers irrespective of their source of income.
“We have kept the entry simple and the terms clear, whether you earn a salary or run your own business,” Okoh said.
He said prospective customers only need to complete an eligibility check at a UBA branch or via email before proceeding with the purchase of their preferred vehicle.
The initiative also provides an opportunity for self-employed Nigerians and other customers without conventional monthly salaries to access vehicle financing, potentially widening the pool of Nigerians who can purchase new vehicles through formal credit.
Tarek Mostafa, general manager of Mikano Motors, said the partnership would enable more Nigerians to access the company’s vehicles as well as its after-sales services.
“Mikano Motors was established to give Nigerians a high-end ownership experience, from the showroom to years down the road,” Mostafa said.
He said the company’s after-sales offering includes genuine spare parts, maintenance and servicing support across the country.
“Partnering with UBA lets more customers enjoy that experience, and we are proud to build lasting relationships alongside a bank that shares our commitment to service,” Mostafa added.
UBA said the partnership forms part of its broader efforts to expand consumer credit and provide more financing options for Nigerians seeking to purchase vehicles.
The bank and Mikano Motors expect the scheme to provide customers with a structured pathway to vehicle ownership while combining access to financing with the manufacturer’s vehicle and after-sales support.
