The term for the contract was one year, following which the contract would be subject to renewal. Company COO Shachindra Nath said "three wheeler transportation accounts for over 70 per cent of all cargo movement within the country, the sheer size of the industry offers significant opportunities for any organized player.
This strategic tie-up was another step in actualizing Religare's vision of providing a comprehensive suite of products and services under its NBFC umbrella. The commercial vehicle finance provided by RFL would help small operators to acquire vehicles with minimum hassle and documentation, and provide customized financing options to suit customer needs.
RFL would provide funding to the customers of Kumar Motors in the southern states of Tamil Nadu, Karnataka and Andhra Pradesh, through its existing dealer network and would then be taken forward for a pan-India presence, the release added.