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ICICI partners with IndoStar to enable Auto financing in low-tier cities

Mr. Ravi Narayanan, Head – Secured Assets, ICICI Bank

ICICI Bank has announced its partnership with IndoStar Capital Finance Limited (IndoStar), a Non-Banking Finance Company (NBFC). This partnership is expected to enable small and medium fleet owners to purchase used and new commercial vehicles.

This has been reported to be a first of its kind organized lending alliance in the auto financing sector in the country between a commercial bank and an NBFC to finance commercial vehicles.

Talking about the partnership, Mr. R. Sridhar, Executive Vice Chairman and CEO, IndoStar said, “We at IndoStar are delighted and humbled to work with an institution like ICICI Bank and being the first NBFC – to get into an arrangement of this nature with ICICI Bank. This combines the balance sheet strength of the bank with our ability to reach out to the underserved CV financing customers across the country’s smaller towns. This is a partnership of domain experience, nimbleness and reach with strength and size.”

Mr. Ravi Narayanan, Head – Secured Assets, ICICI Bank speaks about the alliance, “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. With this, we will have a wider presence across the country to help entrepreneurs buy used and new commercial vehicles.”

IndoStar, a NBFC which has over 322 branches across the country with a niche in auto financing will originate customers for ICICI Bank which will provide funding to these customers, who have so far limited access to channelized credit in tier 2, 3, 4 cities such as Coimbatore, Salem, Tirunelveli, Kurnool, Calicut, Thiruvananthapuram, Jabalpur, Bhopal, Ahmedabad, Rajkot, Jodhpur, Alwar and Meerut.

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