Honda Motorcycle & Scooter India (HMSI) has signed a Memorandum of Understanding (MoU) with merchant commerce platform - Pine Labs to install POS machines across its dealerships pan India. The MoU will now provide a new purchase solution to debit and credit cardholders, by allowing convenient EMI options when purchasing a motorcycle or scooter. Under the new alliance, 14 credit and six debit cardholders will benefit from the move that includes zero down payment, no documentation and waiting time, as well as zero hypothecation fee or NOC from the bank, which is otherwise necessary when securing a loan from a financial institution for a vehicle. Quite the valentine's gift for Honda customers, which not only saves time and effort but processing fees as well. It also makes the two-wheelers easily attainable in the BS6 era that has already seen prices hiked across all models.
Speaking on the new association, Yadvinder Singh Guleria, Senior VP, Sales & Marketing, HMSI said, "With the industry moving towards BS6 era, two-wheeler prices are seeing upward revision of 10 per cent to 15 per cent. As a result, every second customer is now buying on retail finance. Adding another enabler, this partnership with Pine labs will simplify the buying journey of our customers. They can now avail instant EMI options at the point of purchase with zero down payment, zero waiting time for loan approval and instant delivery of their choice of two-wheeler besides no documentation requirements."
Speaking on the partnership with HMSI, Venkat Paruchuri, Chief Product Officer, Pine Labs said, "We are extremely happy to partner with Honda Motorcycle and Scooter India to offer "2 wheeler EMI" to millions of Debit and Credit cards holders across a range of Issuers partners, on the Pine Labs POS machine. EMI on POS is an innovative technology-led financial offering that helps make the complex task of customer loan approval a quick and delightful digital experience and will enable Honda's dealers to reduce the time-lag between order and delivery. We believe that this partnership will offer speedy and convenient financing solutions to Honda's customer base in India."
Currently, two-wheeler buyers applying for a loan need to pay two main charges - down payment and hypothecation fee. There's also the no objection certificate that's needed after the completion of the loan from the bank and later pay and arrange for hypothecation removal at the Registration Authority. Honda says that every second two-wheeler customer now opts for retail finance and the new EMI on Pine Labs POS will cut down the time and documentation hassles. Moreover, it will allow customers to choose from multiple tenure options while opting for an EMI-based purchase.
Furthermore, the Honda-Pine Labs association will allow SBI credit cardholders to avail a cashback of five per cent up to ₹ 4000 that is valid till February 29, 2020, on a minimum purchase of ₹ 40,000.