Hero Cycles tying up with NBFCs for cycle finance

Hero Cycles today said it is tying up with financial institutions across the country to enable weaker sections of the society to get loans for buying bicycles.

The company has launched a pilot project in Maharashtra and Gujarat where it has entered into a strategic tie up with Fullerton India, a non banking financial institution (NBFC) to provide finance to all eligible customers, the company said in a statement.

"In a country like India ...Buying a bicycle can be a difficult task. Moreover, while banks provide loan facilities to buy cars to middle class buyers, hardly any financial institutions do so to help lower income people get bicycles," Hero Cycles Managing Director and Co Chairman Pankaj Munjal, said in a statement.

The company, which is the world's largest manufacturer of bicycles, said the initiative of tying up with financial institutions would be extended to other states as well.

"The company is in the process of scaling up the initiative and by the next month the finance facility will also be made available in Andhra Pradesh, Karnataka, Rajasthan, Tamil Nadu and Madhya Pradesh," it added.

As part of the tie up, the financial institutions would promote the Hero Cycles brand in their respective territories, the company said.

"The company is also in touch with NGOs who can create self help groups, enabling their members to collectively finance and buy cycles, while standing as guarantee for each other," Hero Cycles said.