Ashok Leyland has signed a memorandum of understanding (MoU) with Union Bank of India to provide vehicle financing facilities to customers purchasing its trucks and buses. The partnership will enable the commercial vehicle manufacturer and the public sector bank to offer customised loan solutions and repayment options.
Under the agreement, Union Bank of India will provide end-to-end financing solutions to Ashok Leyland customers. The companies said the arrangements would include flexible repayment options tailored to individual customer requirements. Financial terms, loan interest rates and the duration of the agreement have not been disclosed.
The MoU was signed by Neelakantan, vice-president of finance at Ashok Leyland, and Alok Kumar, general manager and zonal head at Union Bank of India. Representatives from Ashok Leyland's sales finance and retail and inventory finance divisions were also present.
K M Balaji, whole-time director and chief financial officer at Ashok Leyland, said the partnership would expand customer access to financing through Union Bank of India's network. Madhavi Deshmukh, senior vice-president and national sales head for medium and heavy commercial vehicles at Ashok Leyland, said the arrangement was intended to provide fleet operators and businesses with additional financing options.
Alok Kumar said the partnership would provide tailored financing solutions for commercial vehicle purchases, with the stated aim of simplifying vehicle ownership for businesses.
Ashok Leyland manufactures trucks, buses and light commercial vehicles, with products spanning intercity transport and long-haul applications. Its portfolio also includes buses powered by alternative fuels.