Honda India To Woo Customers Through Easy Retail Loans; Ties-Up With PNB

Honda India’s two wheeler arm, Honda Motorcycle & Scooter India Pvt Ltd (HMSI) has signed a Memorandum of Understanding (MoU) with state-run Punjab National Bank to provide retail finance to Honda two wheeler buyers.

“This alliance is first of its kind in the two-wheeler industry - both for Honda and PNB. Propelled by this partnership with Punjab National Bank, we aim to grow Honda's retail finance significantly in coming months,” said Y S Guleria, Vice President, Sales and Marketing, HMSI.
Through this strategic alliance, company aims to tap its target audience in rural areas. “With 40% of branches of PNB in rural areas and additional 24% in semi-urban areas, Honda's strategic alliance with Punjab National Bank will help it make deeper inroads into hinterland”, the company said in a statement.

By availing this offer, customers can save up to Rs 10,000 by getting loan finance for 90% of the value of the product at a lower rate of interest of 12.25%. The auto maker claims that the interest rate is the lowest in the industry.

Commenting on the partnership, S S Bhatia, General Manager, Retail Assets Division, Punjab National Bank said that the bank has offered two retail finance schemes through this alliance. “Our Bank has 80 specialized retail asset branches at prime locations for financing only retail loans. Honda is synonymous globally with high quality products at reasonable prices…Through customized and convenient finance options, we look forward to partnering Honda in fulfilling the dreams and aspirations of millions in India,” added Bhatia.

Reports suggest that HMSI is expecting to clock in a sale of 4.5 million scooters and motorcycles in the current fiscal year, posting a growth of 22% against 3.7 million units sold in the last fiscal year.