Option Financial Services Launches Vehicle-Backed Loans

Option Financial Services (OFS) introduced a new credit facility named Car 4 Cash, enabling individuals and small business owners to secure loans against their vehicles, offering up to 60% of the car's agreed value. This product was unveiled in Lagos on September 25.

According to Adelaja Adeleyi, a Director at OFS, the facility aims to assist small and medium-sized enterprises that often face challenges in obtaining traditional bank financing. Borrowers can receive funds within two to six hours after vehicle assessment, with repayment terms spanning three months and interest rates between 4.5% and 6%.

The CEO and Chairman of the Board, Habeeb Fasuyi, noted that the product was developed to fill the financing gap left by conventional banks, which typically do not accept vehicles as collateral. He also mentioned that the company's non-performing loan ratio had increased, prompting a shift towards secured lending to safeguard assets while continuing to support customers.