Honda Cars India and Magma Fincorp tie up for car finance scheme

Japanese carmaker Honda has signed a memorandum of understanding (MoU) with Magma Fincorp Limited for formulating a finance scheme for cars sold across India. This association is aimed at making purchasing and financing of Honda cars an easier process.

Through this scheme, customers can avail loans of up to 90 per cent on the cost of the car for a tenure of up to five years. The scheme will be valid at all the branches and locations covered by Magma Fincorp Limited and the 275 facilities of Honda Cars India Ltd.

Speaking on the occasion, Raman Kumar Sharma, senior vice president and director, Honda Cars India Ltd said, "We are glad to associate with Magma Fincorp to provide end to end car finance facilities to our customers. Honda is a customer centric company and respects the needs and aspirations of our customers. This tie-up will provide a single window for purchase of the car including its finance and will give better buying experience to our customers."

SachinKhandelwal, chief sales officer, CEO and MD, Magma Housing Finance said, "Magma brings to the table, in additional to urban presence, a special focus on rural and semi-urban sectors with a widespread coverage through 228 branches and presence across 1,600 talukas and 2,900 locations. Magma has a base of 6.5 lakh plus 'active customers' and manages a loan book of about Rs 19,000 crore."

Sumit Mukherjee, national business head of asset based finance in Magma Fincorp Ltd, said, "Our field force of 3,700 addresses the informal and 'rurban' customer segment with limited banking access and no prior credit history. These customers are taking a loan for the first time. This is real time financial inclusion at work. Our field officers are equipped with tablets and printers, making them capable of operating from any location (virtual office) which allows electronic transfer of loan application with all documents from point of sale. Due to this, we are able to increase penetration, turnaround proposals faster and convert leads better resulting in significantly better customer engagement and customer experience."

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