The Distance Between Choosing a Two Wheeler and Securing a Loan Is Shrinking, AU Small Finance Bank and Honda Motorcycle & Scooter India

The two organisations have signed an MoU to enable paperless, digitally supported financing with faster credit decisions across Honda dealerships nationwide.

Mumbai, February 3, 2026: AU Small Finance Bank has entered into a strategic memorandum of understanding with Honda Motorcycle & Scooter India to simplify and accelerate financing for customers purchasing Honda motorcycles and scooters across India.
Under the agreement, AU Small Finance Bank will serve as a preferred financing partner for Honda two wheelers, offering digitally enabled and paperless loan journeys at the dealership level. The collaboration is designed to shorten the time between vehicle selection and loan approval through STP enabled, analytics based credit decisioning supported by the Account Aggregator framework, along with digital repayment solutions.

The partnership aims to improve access to two wheeler ownership for a wide range of customers, including first time buyers. Faster eligibility assessment and end to end digital processing are expected to reduce friction during purchase while enabling customers to benefit from competitive schemes, promotional offers, and pre approved financing options.
Customers of AU Small Finance Bank will gain direct access to Honda’s portfolio of motorcycles and scooters through HMSI’s extensive dealership network across the country. The system integration allows customers to apply online, track application status in real time, and complete the financing process seamlessly at the point of sale.

Commenting on the collaboration, Uttam Tibrewal, Executive Director and Deputy Chief Executive Officer at AU Small Finance Bank, said that the tie up marks an important step in expanding mobility finance across India. He said that the collaboration supports the bank’s focus on customer first solutions, national distribution strength, and transparent financial offerings as it progresses toward becoming a Universal Bank.
Yogesh Mathur, Director, Sales and Marketing at Honda Motorcycle & Scooter India, said that strengthening the financing ecosystem remains central to HMSI’s customer centric approach. He added that the collaboration will simplify the purchase journey at HMSI dealerships while offering customers affordable and convenient credit solutions built on trust and transparency.

Through the integrated operational framework, both organisations aim to deliver a consistent and efficient financing experience that supports mobility aspirations across urban, semi urban, and emerging markets in India.

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