Yes Bank & WheelsEMI venture into co-lending partnership for two-wheeler

Yes Bank has announced the partnership with WheelsEMI. Both the majors have ventured into a strategic co-lending agreement to offer two-wheeler loans at competitive interest rates.

The co-lending framework has been laid down by the Reserve Bank of India that offers a partnership tool that would benefit from the low-cost funds of a bank and the sourcing and servicing expertise of a non-bank financier.

This alliance, the statement states, leverages the power of both lenders, making this a winning proposition for all stakeholders, thereby augmenting the reach to underserved markets.

It further states, “WheelsEMI offers a range of affordable solutions along the two-wheeler ownership-ridership lifecycle, driving affordable mobility for working families. These include financing of new and pre-owned two wheelers, access to electric bikes, insurance, servicing, spare parts management and a transparent marketplace for pre-owned two wheelers."

Rajan Pental, global head (retail banking) atYes Bank, states that the arrangement would allow the bank to improve its reach by entering and deepening its presence in newer markets.

Rajan adds, “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."

The company specializes in financing customers in deep geographies via its unique model that would bridge the digital divide between the urban and rural geographies while allowing mobility to the under-represented segment of customers. Under the arrangement, both the lenders, eye to finance more than 100,000 two-wheelers in the first phase.

Srinivas Kantheti, managing director and chief executive, WheelsEMI states that two-wheelers present a huge white space, and the company is energized to partner with Yes Bank.