Honda Motorcycle & Scooter India has signed a Memorandum of Understanding with Andhra Bank for financing of the company’s two-wheelers in the festive season, it said in a release today.

According to HMSI, customers can avail lowest interest rate of 11.75 percent on reducing balance on the total repayment amount along with different scheme features and flexible tenure. This MoU is the first instance of an Andhra Pradesh based nationalised bank to finance Honda two-wheelers at the national level.

Prospective customers can avail loan facility on up to 85 percent of a two wheeler’s value for up to Rs 500,000 with re-payment tenure of up to 5 years at reducing interest. Additionally, the bank will offer a rebate of 0.75 bps on the loan to women customers.

Commenting on the partnership, Y S Guleria, senior vice president, Sales & Marketing, said, “The strong network of Andhra bank deeply entrenched across markets will assure Honda’s outreach and connect with the consumer. Now customers can easily bring their Honda two-wheelers with limited money commitment.”

This is the second national tie-up for Honda in the festive season, after associations with Shriram Finance announced earlier this month. All the tie-ups are a strategic expansion of Honda’s customer outreach initiatives being rolled out at pan-India level, the company said.