Honda Motorcycles and Scooter India Pvt Ltd (HMSI) has signed a Memorandum of Understanding with Punjab National bank, one of the country’s leading nationalized bank, to provide retail finance options for buying your own Honda two-wheeler.
The MoU was signed by Mr Yadvinder S Guleria, Vice President, Sales and Marketing, HMSI and Mr SS Bhatia, General Manager-Retail Assets, PNB. Thanks to this, Honda customers can buy a new motorcycle or scooter at an industry lowest rate of interest at 12.25 per cent. Customers can save up to Rs 10,000 on the purchase of a new HMSI product on a loan tenure of 3 years for a two-wheeler costing Rs 50,000.
The key highlights of this new scheme include:
- Industry lowest RoI of 12.25% with daily reducing interest.
- Loan amounting to 90% of the value of the two-wheeler
- Flexible and extended repayment tenure of up to 5 years
- Zero processing and documentation charges
Honda is trying to use this opportunity to woo more and more rural customers, which is accentuated thanks to the presence of 40 per cent of PNB’s branches in rural areas. These, in tandem with 4,000 rural and semi-urban touch points (out of the total 6,300 touch points) will help Honda to spread its wings even more gracefully in the rural sector, which would enable them to increase their sales volumes significantly. This scheme is however limited only to people holding salaried accounts.
Punjab National Bank, with its huge customer base of 8.9 crore people and 6,000 branches will also provide a big boost to Honda as they indirectly are getting access to a huge load of prospective customers thanks to this tie-up.
HMSI sold 37.21 lakh units of two-wheelers in the last financial year and they aim to hit the 45 lakh unit mark by the end of the financial year of 2014-15. With a strong growth of 32 per cent this time in April-August slot on a year on year basis, they seem to be well on the way to hit the bull’s eye. The company also intends to set up a fourth manufacturing plant at Ahmedabad, Gujarat which will be operational by next year, and will have an annual capacity of 1.2 million units.