HDFC Bank, TVS Motor in pact for inventory funding

MUMBAI: Two wheeler maker TVS Motors has entered into a memorandum of understanding (MOU) with HDFC Bank for inventory funding for its dealers.

As part of this arrangement, HDFC will provide funding to over 600 dealers of TVS Motors across the country that would enable them to increase their working capital, boost vehicle stocks and consequently enhance retail sales, the company said in a statement today.

The agreement has features such as online fund transfers, online repayment, real time viewing of account status and considerably reduces transaction time, it said.

"We see this association as a value addition to our customers, as it provides an opportunity for our dealers to strengthen their working capital. Easy access to funds at attractive interest rates will help in growing their business and in turn offer better retail services to our customers," TVS Motor President-Marketing H S Goindi said.

HDFC Bank's Vice President-vehicle loans, Ashok Khanna said, "As one of the leading banks in the country with over 1,588 hub and spoke locations pan-India, signing of this MOU will ensure maximum coverage of all dealers of TVS Motor across the country."

Source: Economic Times