The lending programme for small and medium fleet owners is the first to be in between a bank and a non-banking finance company (NBFC) in India.
While ICICI bank will provide the funds for customers which at present have access to organised credit, Indostar will take care of the entire loan life cycle.
The branch networks by IndoStar will be used in in tier two, three and four cities- such as Salem, Coimbatore, Tirunelveli and more- in order to originate underserved customers.
RaviNarayanan, head of secured assets at ICICI Bank reportedly said that ICICI bank has played a major role in the development of transportation infrastructure in India since inception and that its their pleasure to collaborate with IndoStar to bring seamless credit to owners of small and medium fleets and simultaneously contribute to the infrastructure growth story of the country.
R. Sridhar, CEO, IndoStar’s executive vice chairman reportedly stated that this partnership is of domain experience, nimbleness and reach with strength and size.
The NBFC is known to be registered with the Reserve Bank of India as a systematically important non-deposit taking company.