Options Financial Services has introduced a new financial product, Car-for-Cash, which enables vehicle owners to raise funds using their automobiles as collateral while retaining possession and use of the vehicles. The facility was launched in Lagos, Nigeria, at an event attended by customers, partners, and stakeholders in the financial services sector. This product aims to provide an alternative to conventional bank loans, particularly for individuals and micro, small, and medium-sized enterprises.
The Car-for-Cash scheme allows eligible private and corporate vehicle owners to leverage the value of their cars to access funds for various purposes, including business expansion, working capital, school fees, medical expenses, and other personal or commercial obligations. The Chief Executive Officer of Options Financial Services, Habeeb Fasuyi, stated that the product was introduced in response to growing demand for flexible alternatives to conventional bank loans.
The Car-for-Cash facility attracts an interest rate of 4.5%, structured to enable borrowers to unlock liquidity tied up in their vehicles. According to Fasuyi, the product allows vehicle owners to convert the value of their cars into cash for productive use while still driving their vehicles. This initiative is part of the company's strategy to deepen financial inclusion and expand access to credit through lending structures secured by existing customer assets.
The Car-for-Cash product is targeted at customers requiring short- to medium-term financing who do not want to liquidate their vehicles or undergo lengthy processes associated with some forms of unsecured lending. Fasuyi noted that for many people, their car is their most valuable asset after their home, yet it remains idle as a store of value.
Options Financial Services aims to provide a financial solution around an asset that most Nigerians already own. The company's strategy focuses on deepening financial inclusion and expanding access to credit through innovative lending structures.
The launch of Car-for-Cash in Lagos marks a significant milestone for Options Financial Services, as it expands its product offerings in the Nigerian market. The company's management expressed confidence in the product's potential to meet the growing demand for flexible and accessible financing options.
The Car-for-Cash product is poised to benefit individuals and businesses in Nigeria by providing an alternative source of funding. With an interest rate of 4.5%, this asset-backed lending product offers a competitive option for those seeking short- to medium-term financing.
Key points
- Options Financial Services introduces Car-for-Cash, an asset-backed lending product with a 4.5% interest rate.
- The product allows vehicle owners to access funds using their cars as collateral while retaining possession and use of the vehicles.
- Car-for-Cash aims to deepen financial inclusion and expand access to credit for individuals and micro, small, and medium-sized enterprises in Nigeria.
