Honda Motorcycle & Scooter, IndusInd Bank sign pact for two-wheeler financing

Honda Motorcycle & Scooter India (HMSI) on Wednesday signed a pact with IndusInd Bank to offer retail finance to customers in order to boost its domestic growth.

The company has signed a memorandum of understanding with IndusInd Bank offering vehicle loans at a rate of interest of 18% on all Honda two-wheeler models, HMSI said in a statement.

HMSI Senior Vice-President, Sales & Marketing, Yadvinder Singh Guleria said: "In two-wheeler industry, retail finance penetration is increasing, and more and more customers are looking at various finance options... Driven by this partnership with IndusInd Bank, we aim to grow Honda's retail finance significantly."

IndusInd Bank Senior Executive Vice President & Head - Consumer Finance Division S V Parthasarathy said the alliance is part of the bank's strategy to remain a leading player in two-wheeler financing.

"This association will bring about a synergistic benefit for both organisations," he added.

IndusInd Bank will offer financing facilities to all eligible customers for purchasing Honda two-wheelers through its network of over 1,000 branches spread across India, the statement added.

Under the MoU, which comes into effect from today, HMSI said its customers can also get other benefits of up to Rs 7,500, zero processing fee and quick loan approval in just an hour.

Customers can avail loan up to 90% of the product value, with a repayment period of 36 months.