Private sector lender Yes Bank has teamed up with WheelsEMI Pvt Ltd to enter 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 an NBFC.
“The partnership aims at synergizing respective capabilities to provide an efficient and seamless lending experience to two-wheeler buyers across India. This alliance leverages the strengths of both lenders, making this a winning proposition for all stakeholders, thereby expanding the reach to underserved markets,” the official statement said. Under the arrangement, both the lenders plan to finance over 1 lakh two-wheelers in the first phase.
Rajan Pental, Global Head – Retail Banking, YES BANK, said, “We are pleased to partner with WheelsEMI. This 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 Wheels EMI in semi urban and rural markets and build a profitable and sustainable two-wheeler loan portfolio through this partnership.”
Srinivas Kantheti, MD & CEO, WheelsEMI added, “Two wheelers present a huge white space, and we are excited to partner with Yes Bank. This partnership will leverage our investment, increase our reach while building a quality book for the Bank.”
For the unversed, 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 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. Over the last three years, the company has expanded across 13 states and 100+ cities in India with over 3 lakh customers.
