United Bank for Africa (UBA) Plc and Mikano Motors have launched a vehicle financing scheme that allows eligible Nigerians to buy new cars with a 30 per cent initial payment, while the bank finances the remaining 70 per cent.
The initiative, known as ‘Drive Your Dream Today’, is designed to help customers who may struggle to raise the full cost of a vehicle at once. Under the arrangement, the financed portion can be repaid in instalments over 36 months at an interest rate of 23 per cent.
The scheme was unveiled at the Mikano Motors showroom in Victoria Island, Lagos, with the two companies positioning the partnership as a way of widening access to vehicle ownership. Brandspur Banking News Desk reports that the facility is open not only to salaried employees but also to eligible self-employed Nigerians and entrepreneurs.
For many prospective car buyers, the biggest hurdle is often the large amount required to complete a purchase at once. The new arrangement changes that equation by allowing an eligible customer to make the initial 30 per cent commitment and spread repayment of the balance over three years.
Interested customers are required to establish their eligibility with UBA before proceeding with the purchase. They can visit a UBA branch or contact the bank through consumerlending@ubagroup.com for an eligibility assessment.
Once approved, the customer can approach Mikano Motors to obtain a proforma invoice for the preferred vehicle. The document then forms part of the process for completing the financing arrangement.
UBA’s Group Executive Director, designate, Personal and Business Banking, Chidi Okpala, said the partnership was intended to make car ownership more achievable for hardworking Nigerians while encouraging responsible access to credit.
He explained that the arrangement removes the need for customers to provide the entire purchase price upfront, allowing them to acquire their preferred vehicle and repay the financed amount over a three-year period.
UBA’s Group Head, Consumer Lending, Frank Okoh, said the application process was deliberately kept simple so that customers with different sources of income could participate. He noted that applicants do not have to be salaried workers, provided they meet the bank’s eligibility requirements.
Mikano Motors General Manager, Tarek Mostafa, said the company was equally focused on what happens after a customer drives away from the showroom. He said vehicles purchased through the partnership would be supported by access to genuine spare parts, maintenance and after-sales services.
According to Mostafa, Mikano’s after-sales network is intended to give customers support beyond the initial purchase, including assistance when they require servicing or other vehicle-related services.
Established in 2018 under Mikano International, Mikano Motors has built its automotive business on the group’s more than 35 years of operations in Nigeria. The company offers a range of vehicles alongside sales and after-sales services.
For UBA, the partnership represents another push into consumer lending, giving customers access to structured financing for a major purchase that would otherwise require substantial savings or an immediate large cash outlay.
The bank, which operates across 20 African countries as well as the United Kingdom, United States, France and the United Arab Emirates, serves retail, commercial and institutional customers across its markets.
