Axis Bank, the third-largest private sector bank in India, and Autotrac Finance Limited Ltd (AFL), a non-banking financial company based in Gurgaon, announced their strategic alliance today via the Yubi Co.Lend platform. Both institutions will provide “New Tractor Loans” through this agreement for agricultural and related operations to meet the financial demands of the rural sector of the nation. Through this agreement, farmers will have simple access to finance at competitive interest rates thanks to AFL’s broad client experience and Axis Bank’s in-depth financial expertise. AFL has the benefit of having quick access to a large customer base and dealers throughout rural and semi-urban areas (RUSU) in 18 states. It will also keep maximising its network to ensure that farmers fully adopt innovative farming technologies. Additionally, this alliance will enable Axis Bank and AFL to connect with potential clients who are unable to benefit from a traditional loan structure. This agreement, supported by digital platform Yubi, will provide easy loan processing in accordance with co-Lending rules.
Speaking on the collaboration, Mr. Munish Sharda, Group Executive & Head – Bharat Banking, Axis Bank said,” Our partnership with AFL is in alignment with the Bank’s Bharat Banking mission of extending our reach in the remote regions, and providing financial services in a seamless digital manner. With this collaboration, we will increase our presence in the New Tractor business and improve access to formal credit to the farming community of the country. We are excited about the opportunity as our digital co-lending platform allows the partnership to scale-up fast at a lower operating cost, offering a superior customer experience.”
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Commenting on the partnership, Mr. Raman Mittal, Joint Managing Director, International Tractors Ltd.(ITL) & Executive Director, Autotrac Finance Ltd(AFL), said, “Farmers always are at core of any new course of action taken by ITL and we believe that this partnership with Axis Bank will open a whole new era of possibilities for the entire farmer community. With this partnership, Autotrac Finance Limited (AFL) will leverage its fin-tech expertise and network to facilitate a seamless financial support to the farmers. Through our disciplined approach in digitization and analytics we will support farmers in acquiring the most advanced farm equipment from both, Sonalika and Solis-Yanmar at a competitive interest rates.’’
Gaurav Kumar, Founder & CEO, Yubi said, “In India, financial inclusion is a complex issue. The wide underserved market spread across diverse geographies has forced the ecosystem to come together and find efficient ways to reach the underserved and priority sectors. With Axis Bank’s extensive reach and Autotrac Finance Limited’s unparalleled network extending to semi-urban and rural regions of the country, and Yubi’s robust technology offering, this partnership is representative of the kind of collaborative approach India needs between financial institutions and tech-providers. Leveraging the benefits of the co-lending model and Tractor loans, are effective ways to broaden the total addressable customer base, and deepen the reach of financial services in the country, getting more people into the formal financial fold.”
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