Mumbai, Jul 3: Private Sector Lender ICICI Bank said that it has partnered with IndoStar Capital Finance Limited (IndoStar), a systemically important Non-Banking Finance Company (NBFC), to finance small and medium fleet owners to purchase used and new commercial vehicles (CV).
This is a first-of-its-kind lending programme in the country between a commercial bank and an NBFC to finance commercial vehicles, a release from ICICI Bank said.
Under this partnership, IndoStar will originate and service the customers through the entire loan life-cycle, including sourcing, documentation, collection and loan servicing.
ICICI Bank will provide funding to these customers, who have so far limited access to organised credit.
IndoStar, which has developed a niche in financing used commercial vehicles, will originate customers in tier 2, 3, 4 cities where it has branch network. These cities include centres like Coimbatore, Salem, Tirunelveli, Kurnool, Calicut, Trivandrum, Jabalpur, Bhopal, Ahmedabad, Rajkot, Jodhpur, Alwar and Meerut among others. The NBFC has a wide branch network of 322 branches.
Talking about the partnership, Mr Ravi Narayanan, Head - Secured Assets, ICICI Bank said, 'ICICI Bank has played a key role in the development of transportation infrastructure in India since inception.'
'In keeping with this legacy, we are delighted to partner with IndoStar to bring seamless credit to owners of small and medium fleets and contribute to the infrastructure growth story of the country. This partnership will leverage upon the Bank’s efficient lending mechanism and IndoStar’s reach in the smaller pockets of the country to make credit accessible for a larger set of people,' he added.
'With this, we will have a wider presence across the country to help entrepreneurs buy used and new commercial vehicles,' he added. (UNI)