PremiumMumbai: Yes Bank and WheelsEMI Pvt. Ltd on Monday said they have entered into a strategic co-lending agreement to offer two-wheeler loans at competitive interest rates.
The co-lending framework laid down by the Reserve Bank of India provides a collaboration tool that benefits from the low-cost funds of a bank and the sourcing and servicing expertise of a non-bank financier.
This alliance, the statement said, leverages the strength of both lenders, making this a winning proposition for all stakeholders, thereby expanding the reach to underserved markets.
“WheelsEMI offers a range of affordable solutions along the two-wheeler ownership-ridership lifecycle, driving affordable mobility for working families. These include financing of new and pre-owned two wheelers, access to electric bikes, insurance, servicing, spare parts management and a transparent marketplace for pre-owned two wheelers," it said.
The company specializes in financing customers in deep geographies through its unique model, which bridges the digital divide between the urban and rural geographies while enabling mobility to the under-represented segment of customers. Under the arrangement, both the lenders, plan to finance over 100,000 two-wheelers in the first phase.
Rajan Pental, global head (retail banking) atYes Bank, said that the arrangement will enable the bank to enhance its reach by entering and deepening its presence in newer markets.
“We look forward to leverage the strengths of WheelsEMI in semi-urban and rural markets and build a profitable and sustainable two-wheeler loan portfolio through this partnership," said Pental.
Srinivas Kantheti, managing director and chief executive of WheelsEMI said that two-wheelers present a huge white space, and the company is excited to partner with Yes Bank.
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