ICICI inks pact with Indostar Capital to finance commercial vehicles

ICICI Bank has tied up with non-banking financial company IndoStar Capital for vehicle financing for small and medium fleet owners to buy new as well as old commercial vehicles.

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 said in a release.

ICICI Bank will provide funding to these customers, who have so far limited access to organised credit, it said.

IndoStar will originate customers in tier-II, III, IV cities where it has a branch network of 322 branches.

These cities include Coimbatore, Salem, Tirunelveli, Kurnool, Calicut, Trivandrum, Jabalpur, Bhopal, Ahmedabad, Rajkot, Jodhpur, Alwar and Meerut.

"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," said Ravi Narayanan, head (secured assets), ICICI Bank.

R Sridhar, executive vice-chairman and CEO, IndoStar, said: "This combines the balance sheet strength of the bank with our ability to reach out to the underserved CV (commercial vehicle) financing customers across the country's smaller towns.

This is a partnership of domain experience, nimbleness and reach with strength and size," said Sridhar.