Nigerian Firm Launches Car-for-Cash Loan at 4.5% Interest for Vehicle Owners
- Options Financial Services launches Car-for-Cash, enabling eligible vehicle owners to raise funds without surrendering their cars
- Customers can access financing at a 4.5 per cent interest rate for business expansion, urgent needs and working capital
- Vehicle valuation and documentation are required, with loan amounts and repayment terms determined by eligibility and collateral assessment
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Options Financial Services has launched a new asset-backed lending product that allows eligible vehicle owners to raise cash using their cars as collateral without surrendering possession of the vehicles.
The product, known as Car-for-Cash, was unveiled on Friday at the Radisson Blu Hotel in Ikeja, Lagos, as the financial services company moves to tap growing demand for alternative credit among individuals and businesses.
Source: UGC
Options Financial Services said the facility comes with an interest rate of 4.5 per cent and is designed for customers seeking funds for business expansion, working capital, urgent financial commitments and other personal needs.
Vehicle owners retain use of cars
Unlike arrangements that may require borrowers to surrender the asset securing a loan, the Car-for-Cash facility allows qualified customers to continue using their vehicles while accessing financing against their value.
Speaking at the launch, Chief Executive Officer of Options Financial Services, Habeeb Fasuyi, said the product was developed to help customers unlock liquidity from assets they already own.
According to him, the facility provides an alternative for vehicle owners who require funding but do not want to sell their cars to meet immediate financial needs.
Under the arrangement, a qualifying vehicle serves as security for the financing while remaining available to the borrower for transportation, business and other daily activities.
Alternative credit gains attention
The launch comes as Nigerian households and small businesses continue to explore alternative sources of financing outside traditional bank loans.
Asset-backed lending allows borrowers to use property they already own as security for credit, potentially widening financing options for customers who meet lenders’ requirements.
For motorists, such financing effectively allows a vehicle to serve two purposes: transportation and collateral for accessing liquidity.
Fasuyi said Options Financial Services was developing products around changing customer needs and exploring lending structures that could expand access to credit.
He said the Car-for-Cash facility could particularly serve customers seeking short- and medium-term funding without disrupting their ability to use their vehicles.
Valuation required before approval
However, access to the facility is subject to eligibility requirements.
Prospective borrowers will be required to submit relevant documentation, while vehicles presented as collateral will undergo valuation before financing is approved.
Source: Getty Images
The applicable loan amount, repayment structure and other conditions will depend on the terms of the facility and the assessment of the vehicle.
Customers considering the product would therefore need to examine the full cost of borrowing, repayment obligations and collateral conditions before taking the facility.
With Car-for-Cash, Options Financial Services is expanding its asset-backed lending portfolio, targeting Nigerians who own valuable vehicles but require additional liquidity without immediately selling those assets.
5 fuel-efficient Tokunbo cars Nigerians can buy
Legit.ng earlier reported that rising petrol prices and the increasing cost of imported vehicles are forcing Nigerian motorists to reconsider their choices, with fuel efficiency becoming an important consideration alongside purchase price.
Despite the rising cost of foreign-used vehicles, popularly called Tokunbo, Nigerians with budgets below ₦10 million can still find selected models from Toyota, Honda and Hyundai that offer relatively economical fuel consumption.
Source: Legit.ng
