Axis Bank has entered into a co-lending pact with Autotrac Finance (AFL) through YubiCo.Lend platform, to offer new tractor loans for agricultural and allied activities in rural segments of the country.
The partnership will leverage the wide customer experience of Autotrac Finance and deep financial expertise of Axis Bank to enable easy credit availability for farmers at an optimal interest rates, the lenders said in a joint release, while adding that they would be able to reach out to potential customers who are unable to access the formal lending structure.
“With this collaboration, we will increase our presence in the New Tractor business and improve access to formal credit to the farming community. Our digital co-lending platform allows the partnership to scale-up fast at a lower operating cost, offering a superior customer experience,” Munish Sharda, Group Executive and Head - Bharat Banking, Axis Bank said.
Autotrac Finance has an advantage of ready access to a robust customer base and dealers across rural and semi-urban regions in 18 States and it will further continue to maximize its network to ensure that farmers embrace advanced farming technologies backed by tech platform Yubi.
The company is the wholly-owned subsidiary of International Tractors Limited, with a focus on rural and agri-business finance. It operates very closely with International Tractors’ dealer network of Sonalika and Solis Yanmar in supporting farmers to acquire latest farm equipment at competitive terms.
“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,” Gaurav Kumar, Founder and CEO of Yubi said.