ICICI Bank announced that it has partnered with IndoStar Capital Finance Limited (IndoStar), a systemically important Non-Banking Finance Company (NBFC), to finance small and medium fleet owners to purchase used and new commercial vehicles (CV). This is a firstof-its-kind lending programme in the country between a commercial bank and an NBFC to finance commercial vehicles. Under this partnership, IndoStar will originate and service the customers through the entire loan life-cycle including sourcing, documentation, collection and loan servicing. ICICI Bank will provide funding to these customers, who have so far limited access to organised credit.
IndoStar, which has developed a niche in financing used commercial vehicles, will originate customers in tier 2, 3, 4 cities where it has branch network. These cities include centres like Coimbatore, Salem, Tirunelveli, Kurnool, Calicut, Trivandrum, Jabalpur, Bhopal, Ahmedabad, Rajkot, Jodhpur, Alwar and Meerut among others. The NBFC has a wide branch network of 322 branches.