UBA, Mikano Motors Launch New Vehicle Offer With 30% Deposit

United Bank for Africa (UBA) Plc has partnered with Mikano Motors to introduce a new vehicle financing scheme that allows Nigerians to acquire brand-new vehicles by paying an initial 30 per cent deposit, with the bank financing the remaining 70 per cent.

The initiative, known as “Drive Your Dream Today”, was unveiled at the Mikano Motors showroom in Victoria Island, Lagos, on Monday, as the two companies seek to make vehicle ownership more accessible through structured consumer credit.

Under the arrangement, eligible customers will contribute 30 per cent of the cost of their preferred vehicle, while UBA will provide financing for the balance. The loan is repayable over a period of 36 months at an interest rate of 23 per cent.

The scheme is open to both salaried employees and self-employed Nigerians. UBA also said individuals who do not have fixed monthly incomes could participate, subject to meeting the bank’s eligibility requirements.

The initiative is expected to provide an alternative for prospective vehicle owners who may be unable to raise the full purchase price of a new vehicle at once, while giving them the opportunity to spread repayment over three years.

Chidi Okpala, UBA’s group executive director-designate, personal and business banking, said the partnership was driven by the need to make vehicle ownership more attainable for hardworking Nigerians.

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“​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 customers would only need to provide 30 per cent of the vehicle’s value upfront, with UBA funding the outstanding 70 per cent for repayment over three years.

Okpala said the initiative also represented part of the bank’s broader effort to deepen access to credit and encourage Nigerians to embrace responsible borrowing as a means of meeting major financial needs.

UBA’s group head, consumer lending, Frank Okoh, said the financing process had been deliberately simplified to accommodate customers with different income profiles.

“We have kept the entry simple and the terms clear, whether you earn a salary or run your own business,” Okoh said.

According to him, prospective customers would first undergo an eligibility check, which could be completed at any UBA branch or through email.

Once a customer has been approved, the applicant can obtain a proforma invoice from Mikano Motors for the vehicle of choice and proceed with the financing process.

The inclusion of self-employed customers and individuals without regular monthly salaries broadens the potential reach of the scheme, particularly for Nigerians whose income patterns do not conform to the conventional monthly salary structure required by some lending arrangements.

For Mikano Motors, the partnership with UBA is expected to strengthen access to its range of vehicles while allowing customers to benefit from the company’s after-sales support.

Tarek Mostafa, general manager, Mikano Motors, said the company’s objective was not limited to selling vehicles but also providing customers with a comprehensive ownership experience.

“Mikano Motors was established to give Nigerians a high-end ownership experience, from the showroom to years down the road,” Mostafa said.

He noted that the company’s after-sales services include the provision of genuine spare parts, maintenance and servicing support across the country.

Mostafa said the partnership with UBA would enable more Nigerians to gain access to Mikano vehicles and the support services that come with ownership.

“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,” he added.

UBA said the vehicle financing initiative aligns with its efforts to expand consumer lending and develop financial products that enable individuals to meet major purchase needs without bearing the entire cost upfront.

The partnership comes amid growing interest in vehicle financing as consumers and businesses seek ways to manage the rising cost of acquiring new automobiles.

By combining a 30 per cent initial payment with bank financing for the remaining 70 per cent, the “Drive Your Dream Today” scheme provides eligible customers with a structured repayment option for acquiring new vehicles from Mikano Motors.

The bank said interested customers can begin the process by checking their eligibility with UBA before selecting their preferred vehicle and obtaining the required proforma invoice from Mikano Motors.