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Now, Buy Cycles At An EMI Of Rs 70! : The Financial Express
Delhi, Nov 19: It is raining loans for consumers this monsoon. Be it for homes, two-wheelers, four-wheelers - not to mention consumer durables - the market is awash with easy finance schemes for consumers.
Delhi, Nov 19: It is raining loans for consumers this monsoon. Be it for homes, two-wheelers, four-wheelers - not to mention consumer durables - the market is awash with easy finance schemes for consumers.
Now, bicycle manufacturers are out in full strength to replicate the success saga - of easy finance schemes driving sales in full throttle - for their companies. They are doling out financing schemes in association with leading commercial banks to hit the fast lane of growth.
Taking the lead in innovative new financing schemes is Hero Cycles. Closely following is TI Cycles, makers of BSA brand cycles and Atlas Cycles, which will soon hit the streets with its own special schemes.
“The cycle industry has been in doldrums with negative growth. There is a huge market for bicycles in the lower income segment which is yet to be tapped. The idea of our easy finance scheme launched in association with Corporation Bank is to tap this market,” says a senior official of Hero Cycles.
Adds G Hari, president, TI Cycles: “We are working on several promos for our brands which include easy finance schemes. We are in fact in the advanced stage of talks with a slew of commercial banks to launch the schemes. The idea is to replicate the success story of easy finance schemes in the two-wheeler and consumer durables segments in bicycles.”
Atlas Cycles too has joined the race to offer an easy finance scheme for its customers. “Indeed, we are planning to launch a scheme tailormade for our customers,” a senior company official said.
The Hero Cycles-Corporation Bank scheme offers easy credit to its customers at EMI (equated monthly installment) as low as Rs 70. It is open for individuals, self-help groups, non-government organisations and corporate houses.
All the customer has to do is produce just his or her address proof and a quotation from the cycle dealer. The scheme offers loan at 8.5 per cent rate of interest for women and 9 per cent rate of interest for men.
The company officials say the scheme has already caught the fancy of customers with even corporate houses approaching the company for availing the scheme. “Enquiries have started pouring in at our offices and the concept is going to be a major hit for the company,” claim Hero officials.
Atlas Cycles has also joined the race by initiating talks with a couple of nationalised and private banks. “We have started talking to Corporation Bank for an arrangement wherein 10 per cent of the value of the cycle will come as the contribution of the buyer and the balance will be funded by the bank. We are talking to Corporation Bank to offer the loan at eight per cent for a period of 36 months in Kerala and Karnataka. It is expected to be finalised and rolled out by early December,” company officials explained. The company is also talking to other banks like HDFC for Maharashtra, ABN AMRO, State Bank of India, Bank of Baroda and Punjab National Bank for launching the scheme in Chhattisgarh, Orissa and other states.
“This move will help us in boosting our sales at least by about 20 per cent from the present level of 2,25,000 cycles per month across the country. It will also enable us to express our social responsibility by extending the scheme to the lower income group,” they said.
Corporation Bank officials have already declared the scheme a hit. “Big corporates have started asking us to extend the loan scheme to all their employees who fall under the low income group,” they said.
Taking the lead in innovative new financing schemes is Hero Cycles. Closely following is TI Cycles, makers of BSA brand cycles and Atlas Cycles, which will soon hit the streets with its own special schemes.
“The cycle industry has been in doldrums with negative growth. There is a huge market for bicycles in the lower income segment which is yet to be tapped. The idea of our easy finance scheme launched in association with Corporation Bank is to tap this market,” says a senior official of Hero Cycles.
Adds G Hari, president, TI Cycles: “We are working on several promos for our brands which include easy finance schemes. We are in fact in the advanced stage of talks with a slew of commercial banks to launch the schemes. The idea is to replicate the success story of easy finance schemes in the two-wheeler and consumer durables segments in bicycles.”
Atlas Cycles too has joined the race to offer an easy finance scheme for its customers. “Indeed, we are planning to launch a scheme tailormade for our customers,” a senior company official said.
The Hero Cycles-Corporation Bank scheme offers easy credit to its customers at EMI (equated monthly installment) as low as Rs 70. It is open for individuals, self-help groups, non-government organisations and corporate houses.
All the customer has to do is produce just his or her address proof and a quotation from the cycle dealer. The scheme offers loan at 8.5 per cent rate of interest for women and 9 per cent rate of interest for men.
The company officials say the scheme has already caught the fancy of customers with even corporate houses approaching the company for availing the scheme. “Enquiries have started pouring in at our offices and the concept is going to be a major hit for the company,” claim Hero officials.
Atlas Cycles has also joined the race by initiating talks with a couple of nationalised and private banks. “We have started talking to Corporation Bank for an arrangement wherein 10 per cent of the value of the cycle will come as the contribution of the buyer and the balance will be funded by the bank. We are talking to Corporation Bank to offer the loan at eight per cent for a period of 36 months in Kerala and Karnataka. It is expected to be finalised and rolled out by early December,” company officials explained. The company is also talking to other banks like HDFC for Maharashtra, ABN AMRO, State Bank of India, Bank of Baroda and Punjab National Bank for launching the scheme in Chhattisgarh, Orissa and other states.
“This move will help us in boosting our sales at least by about 20 per cent from the present level of 2,25,000 cycles per month across the country. It will also enable us to express our social responsibility by extending the scheme to the lower income group,” they said.
Corporation Bank officials have already declared the scheme a hit. “Big corporates have started asking us to extend the loan scheme to all their employees who fall under the low income group,” they said.