Options Financial Services has launched an asset-backed lending product that allows vehicle owners to raise funds using their automobiles as collateral while retaining possession and use of the vehicles.

The facility, known as Car-for-Cash, was launched in Lagos, at an event attended by customers, partners and stakeholders in the financial services sector.

Under the scheme, eligible private and corporate vehicle owners can leverage the value of their cars to access funds for business expansion, working capital, school fees, medical expenses and other personal or commercial obligations without selling the vehicles.

The Chief Executive Officer of Options Financial Services, Habeeb Fasuyi, said the product was introduced in response to growing demand for flexible alternatives to conventional bank loans, particularly among individuals and micro, small and medium-sized enterprises.

Fasuyi said the facility attracts an interest rate of 4.5 per cent, adding that it was structured to enable borrowers to unlock liquidity tied up in their vehicles.

“What we have done with Car-for-Cash is to create a financial solution around an asset that most Nigerians already own. For many people, their car is their most valuable asset after their home, yet it is idle as a store of value. This product allows them to convert that value into cash for productive use, while still driving their car and going about their daily business,” Fasuyi said.

He said the initiative formed part of the company’s strategy to deepen financial inclusion and expand access to credit through lending structures secured by existing customer assets.

According to him, the facility 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.