Honda inks retail finance pact with PNB

  • Sep 15, 2014
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What this means for two wheeler customers is that Honda two wheelers can now be available on 90 per cent finance at 12.25 per cent interest (with daily reducing interest)

HMSI-PNB ink retail finance pact

Honda Motorcycle and Scooter India (HMSI) has tied up with Punjab National Bank (PNB) to provide attractive retail finance to Honda’s two wheeler customers across India.

The Memorandum of Understanding was signed and exchanged between Yadvinder Singh Guleria, Vice President – Sales and Marketing, HMSI and S. S. Bhatia, General Manager – Retail Assets, PNB.

“Punjab National Bank has strong rural presence with 40 per cent of branches in rural India. Customers can now buy any Honda two wheeler at 12.25 per cent interest rate – the lowest interest rate in the industry,” said Y.S. Guleria.

The finance scheme, which will start from the festival season will provide loan amount to as much as 90 per cent of the two-wheeler value and the extended repayment tenure could be up to five years.

PNB has a customer base of 8.9 crore and they will stand to benefit from this MoU. HMSI currently holds the Number 2 position in the two-wheeler industry in India, the first position being held by former partner Hero MotoCorp.

The company say 32 per cent growth over the last year, compared to an industry average growth of 15 per cent. Honda Activa is currently the highest selling model, not only for HMSI, but the highest selling two-wheeler in India. The Activa sells more numbers in a single month in India than the number of motorcycles Honda sells in the US in one whole year. 

As an industry leader in the automatic scooter segment, HMSI believes that even in rural and semi-urban markets, the automatic scooter segment stands to grow much more in coming years. The retail finance pact with PNB therefore, not only targets to sell mass-market motorcycles in rural areas, but also to provide easy finance options for automatic scooters.

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