GE Money plans to exit two-wheeler finance

US financial major GE Money, the consumer finance unit of General Electric, has decided to exit the two-wheeler finance business citing low margins.

A company spokesperson said GE Money would shift focus from its two-wheeler finance business, and concentrate resources on its high-growth and high-profitability businesses.

"India is a key market for GE Money, and we believe these changes will enable us to achieve our aim to become one of the top five financial services company in the country. We will, however, continue to support our existing customers," he added.

ICICI Bank, HDFC Bank, CitiFinancial and Centurion Bank are some of the prominent companies that provide two-wheeler finances in the industry. GE Money is a small player in the business.

A Hero Honda dealer in New Delhi said, "GE Money has withdrawn itself from the market without providing any reasons for the same. The company has also not provided notification on the status of their existing clients to us. We were asked to stop the provisions of GE Money loans only a couple a days ago".

GE Money has a retail distribution network in over 5,500 outlets across 70 locations, and deals in products including car finance, consumer durable finance, personal loans and loan against property and home loan.

According to CRIS INFAC, an industry information service providing arm of credit rating agency CRISIL, the outstanding portfolio of the two-wheeler finance market is expected to reach Rs 30,800 crore by 2009-10 from about Rs 18,100 crore now. The organised two-wheeler finance market is estimated to be Rs 26,500 crore in 2009-10.