Hero Cycles is in a bid to tie up with financial institutions throughout India in order to allow weaker sections of the society to get loans in order to buy bicycles. A pilot project has been launched in Maharashtra as well as Gujarat where Hero has entered a strategic tie up with a Non Banking Financial Institution (NBFC), Fullerton India in order to assist all eligible customers financially.
In India, even buying bicycles can be difficult. Also, while there are banks which provide middle class buyers loan facilities for new cars, hardly any bank or financial institution does the same for lower income people and bicycles. The company, which is also the biggest bicycle manufacturer in the world, is keen to extend this to other states of India as well.
The process of up-scaling the initiative is underway with plans to launch the scheme in Karnataka, Rajasthan, Andhra Pradesh, Madhya Pradesh and Tamil Nadu soon. As a part of this tie up, the institutions will actively promote the Hero Cycles brand in all their territories. NGO’s are also being kept in the loop to help build self-help groups which would allow the collective financing and purchasing of bicycles and also acting as a guarantee for one another.