Options Financial Services has introduced Car-for-Cash, an asset-backed lending product that lets eligible vehicle owners in Nigeria raise funds using their cars as collateral while retaining possession of their vehicles. The facility carries a 4.5% interest rate and is intended for business expansion, working capital, urgent financial needs, and personal expenses.
Product Launch at Radisson Blu, Ikeja
The product was unveiled on Friday at the Radisson Blu Hotel in Ikeja, Lagos. The company said the launch responds to growing demand for alternative credit among individuals and businesses. Unlike traditional collateral arrangements that may require borrowers to surrender the asset securing a loan, Car-for-Cash allows qualified customers to continue using their vehicles while accessing financing against their value.
At the launch, Chief Executive Officer of Options Financial Services, Habeeb Fasuyi, explained that 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.
How the Facility Works
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. This dual purpose—transportation and collateral—is a key feature of the product, according to the company.
Fasuyi said Options Financial Services was developing products around changing customer needs and exploring lending structures that could expand access to credit. He noted that the Car-for-Cash facility could particularly serve customers seeking short- and medium-term funding without disrupting their ability to use their vehicles.
Eligibility and Valuation Requirements
Access to the facility is subject to eligibility requirements. Prospective borrowers must submit relevant documentation, and vehicles presented as collateral will undergo valuation before financing is approved. 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 are advised 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.
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.
