Uber Nigeria partners First Bank to launch used-vehicle finance scheme
- First Bank plans to use part of its N10 billion auto credit facility to fund its partnership with Uber Nigeria.
Uber Nigeria has partnered with First Bank of Nigeria Limited to offer low-interest, used-vehicle loans to its top-rated driver-partners, according to a statement released on Wednesday.
Under the new used-vehicle finance partnership, Uber Nigeria said its driver-partners will be able to apply for loans from First Bank of Nigeria to purchase used vehicles based on their driver-performance records. The loans will be offered at either an interest rate of 20 percent per annum spread over a 24-month repayment period; or an interest rate of 22 percent per annum, with a maximum repayment term of 36 months.
“We are absolutely committed to making it as easy as possible for our driver-partners to start and maintain their own successful and profitable businesses,” said Ebi Atawodi, General Manager of Uber Nigeria. “And these used vehicle finance options make it possible for those with a demonstrable performance commitment to build sustainable businesses without incurring the high costs often associated with new vehicle purchases.”
In order to qualify for the used-vehicle finance loan from First Bank of Nigeria, Uber Nigeria said its driver-partners must demonstrate an average driver performance rating of higher than 4.5 as well as earn over N2.4 million in the prior six months.
First Bank of Nigeria is planning to use part of its N10 billion auto credit facility to fund its partnership with Uber Nigeria, which will target 90 drivers at the pilot stage, Gbenga Shobo, FBN’s Deputy Managing Director, told Bloomberg.
“It remains our business to foster the growth and development of small and medium scale businesses in Nigeria as the No.1 SME Bank,” said Adesola Adeduntan, MD/CEO of First Bank of Nigeria. “This is the reason why we have partnered with Uber by empowering operators to own vehicles and build profitable businesses.”
Uber Nigeria operates a platform that allows passengers connect with licenced private drivers in Nigeria via a smartphone application. The company is a subsidiary of San Francisco-based Uber, and it operates in 527 cities across 77 countries. Uber Nigeria has operations in Lagos and Abuja with over 2,000 drivers.
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