TVS Motor, Union Bank join hands for finance scheme
TVS Motor Company and Union Bank of India (UBI) have announced the launch of `Union Miles Scheme,' an exclusive two-wheeler finance scheme, here on Wednesday.
Addressing a press conference on the eve of signing the pact, the UBI General Manager, Mr V.S.R. Murthy, and the TVS Vice-President (Sales & Marketing), Mr R. Chandramouli, said the exclusive tie-up would be initially extended to Andhra Pradesh, Uttar Pradesh, Bihar and Jharkhand, and later expanded to other regions through UBI's 2,000-odd branch network.
The scheme would cover both retail and institutional customers at interest rates as low as 10 per cent to 10.5 per cent based on the repayment period, Mr Murthy said.
According to him, the strategic tie-up would enable the bank to extend attractive loans for the two-wheeler customers across TVS Motor's dealership outlets.
While TVS would train its dealers on the new scheme, UBI would empower branch managers to give spot sanctions of loans.
Special marketing officers would be appointed and trained by the bank with the support from TVS Motor to implement the scheme, he said.
According to Mr Murthy, the tie-up of UBI with TVS Motor signals the bank's intent to focus on a major retail thrust enabling it to expand in newer markets.
The bank has identified consumer and two-wheeler finance as a major focus activity, he said.
Stating that TVS Motor has enjoyed dominance in the rural sector consistently while maintaining its leadership position with an array of two-wheeler products, Mr Chandramouli said the tie-up with UBI seeks to consolidate its position across all segments of its two-wheelers. The company would soon be launching a range of two-wheelers to spiral future sales, he said.