Yes Bank and WheelsEMI on Monday announced a co-lending partnership, aimed at financing over 1 lakh two-wheelers in the first leg of the tie-up. Yes Bank and WheelsEMI Pvt Ltd have entered into a strategic co-lending agreement to offer two-wheeler loans at competitive interest rates, said a joint press release.
The partnership aims at synergising respective capabilities to provide an efficient and seamless lending experience to two-wheeler buyers across India. Under the arrangement, both the lenders plan to finance over 1 lakh two-wheelers in the first phase, it said.
The tie-up is in line with the co-lending framework laid down by Reserve Bank, allowing collaboration benefits from a bank’s low-cost funds and sourcing and servicing expertise of an NBFC. This will help expand the reach to underserved markets, said the release.
“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 WheelsEMI 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. WheelsEMI offers affordable solutions along the two-wheeler ownership-ridership lifecycle, driving affordable mobility for working families.
It finances new and pre-owned two-wheelers, access to electric bikes, insurance, servicing, spare parts management and a transparent marketplace for pre-owned two wheelers. Srinivas Kantheti, MD & CEO, WheelsEMI, said: “Two wheelers present a huge white space. This partnership will leverage our investment, increase our reach while building a quality book for the bank.”