YES BANK and WheelsEMI Pvt Ltd have formed a comprehensive co-lending partnership to provide two-wheeler loans at low-interest rates. The collaboration intends to combine their respective expertise in an effort to grant two-wheeler customers across India an effective and smooth loan service. The private sector bank has said in its press release that "The co-lending framework laid down by Reserve Bank of India provides a collaboration tool which benefits from the low-cost funds of a Bank and the sourcing and servicing expertise of a NBFC. This alliance leverages the strengths of both lenders, making this a winning proposition for all stakeholders, thereby expanding the reach to underserved markets."
According to the media release of the bank issued on 23rd August 2021 "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. WheelsEMI 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 1 lakh two-wheelers in the first phase," the private sector bank has stated in its official announcement.
"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," Rajan Pental, Global Head - Retail Banking, YES BANK, said.
"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," Srinivas Kantheti, MD & CEO, WheelsEMI acknowledged.