Shriram Transport Finance Company (STFC) today said it will offer credit for fuel refilling to customers through a digital channel in partnership with Hindustan Petroleum Corporation (HPCL).
The two companies have inked a memorandum of understanding (MoU) to offer this credit-based fuel refilling service.
This will enable customers to have an efficient way of purchasing auto fuels like diesel, petrol and lubricants at credit, STFC said in a statement today.
STFC which offers various loan products including commercial vehicle finance and tyre loans said this credit facility is an affordable low-cost working capital solution to monitor and control fuel expenses.
Fuel finance service will be a cash/card-free transaction, the company said.
"STFC envisions filling the gap in providing end-to-end finance solutions to its customers. Hence, this pact with HPCL is hopeful to serve the small road transport owner (SRTO's) and first time owner (FTU's), which forms more than 70 per cent of our customer base, with low-cost working capital," Umesh Revankar, MD and CEO, STFC said.
The tenure of the credit facility, based on OTP-based digital platform, will range from 15-30 days and customers.
"STFC in turn also hopes to contribute to the national goal of a cashless economy and Digital India mission by linking this credit facility with a mobile number integrated web enabled OTP-based platform installed across HPCL retail outlets," Revankar said.
G S V Prasad, Executive Director-Retail, HPCL said the tie-up will provide fuel to the customers with complete cashless convenience on pan-India basis, along with loyalty rewards and insurance.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)