Options Financial Services launches Car-for-Cash loan at 4.5% interest

Options Financial Services has launched Car-for-Cash, an asset-backed lending product that lets eligible vehicle owners raise money using their cars as collateral without handing over the vehicles. The facility carries an interest rate of 4.5 per cent and was unveiled on Friday at the Radisson Blu Hotel in Ikeja, Lagos.

The company said the product targets customers who need funds for business expansion, working capital, urgent financial commitments and other personal needs, without selling the car they depend on daily.

How the facility works

Under the arrangement, a qualifying vehicle serves as security for the financing while staying with the borrower for transportation, business and other daily activities. That separates it from arrangements that require a borrower to surrender the asset backing a loan.

Chief Executive Officer of Options Financial Services, Habeeb Fasuyi, said the product was created to help customers unlock liquidity from assets they already own. He said it offers an alternative for vehicle owners who need funding but do not want to sell their cars to meet immediate financial needs.

Fasuyi added that the company is developing products around changing customer needs and exploring lending structures that could widen access to credit. He said Car-for-Cash could serve customers seeking short and medium term funding without disrupting their ability to use their vehicles.

Eligibility and conditions

Access is subject to eligibility requirements. Prospective borrowers must submit relevant documentation, and any vehicle presented as collateral will undergo valuation before financing is approved.

The loan amount, repayment structure and other conditions will depend on the terms of the facility and the assessment of the vehicle. Customers weighing the product would need to examine the full cost of borrowing, repayment obligations and collateral conditions before taking it up.

What it means for borrowers

The launch comes as Nigerian households and small businesses continue to search for credit outside traditional bank loans. Asset-backed lending allows borrowers to use property they already own as security, which can widen financing options for those who meet lenders' requirements.

For motorists, the model lets a vehicle serve two purposes at once: transport and collateral for liquidity. Options Financial Services is expanding its asset-backed lending portfolio with the product, targeting Nigerians who own valuable vehicles but need additional cash without selling those assets immediately.