Hero Cycles launches pilot project to provide loans

Now, micro-finance for bicycles too

While there were loans available to buy cars and two-wheelers, now one could buy a bicycle on finance too. The world's largest manufacturer of bicycles Hero Cycles Ltd  is in the process of tying up with financial institutions in several parts of the country as a part of its initiative to provide loans to people of the weaker sections.

The initiative has been launched as a pilot project in Maharashtra and Gujarat where Hero Cycles Ltd has entered into a strategic tie up with Fullerton India, a non banking financial institution (NBFC) engaged in the business of finance in rural and urban areas. "The institution provides finance to all eligible customers and even 100 per cent funding is also made available at competitive interest rates," a company statement here claimed.

While the micro-finance project has been kick-started in Maharashtra and Gujarat, it will soon 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 be made available in Andhra Pradesh, Karnataka, Rajasthan, Tamil Nadu and Madhya Pradesh.

Pankaj Munjal, managing director and co-chairman, Hero Cycles Ltd said, "On the face of it, a bicycle may appear to be quite an affordable commodity.However, in a country like India where millions of people still live on less than a dollar a day, 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 said in  a statement that 'A bicycle can in many ways revolutionise the life of a family that does not have any transport vehicle of its own. For a man who works as a plumber, owning a bicycle does not only mean that he can reach his customers in less time, but it also means he can serve a larger area  and increase his means of income. Precious money that earlier went on public transport is saved, so is precious time that was spent walking.'

Munjal added, "We earnestly believe that bicycles need to be made available to each and every person in India. They should be considered an extension of our basic needs of ‘roti, kapra, aur makaan’. A deep penetration of bicycles will in many ways change the lives of millions of people and even increase our productivity."