Karnataka Vikas Grameena Bank (KVG Bank), a regional rural bank headquartered in Dharwad, has entered into an agreement with TVS Motors for financing three-wheelers (auto rickshaw).
According to Ashok Reddy, Chairman, KVG Bank “the MoU was signed to boost the selling of the vehicle-loan product of the bank through its large network of branches and also to motivate unemployed youths to take up income-generating activities through auto rickshaws…The bank has redesigned its existing loan product with a few concessions.”
Reddy further said that TVS three wheelers could be purchased through the bank’s Janashakti Scheme which aims at meeting the credit needs of entrepreneurs of meagre means, by linking repayment of the loan to the small amounts contributed by them on a daily basis to their ‘Daily Deposit’ Scheme (Pigmy A/c).
KVG Bank, at present, has more than 59,000 small road transport operators accounts with an outstanding balance of ₹100 crore. K Subramaniyan, GM, Finance, TVS Motors said “the company is exploring KVG Bank’s vast network along with (its) good image among the people. Hence we decided to go for an agreement”. Suryakanta Ganga, general manager, KVG Bank, in his introductory remarks, explained the benefits of the MoU. B Vasudev chief manager, Ullas Gunaga of KVG Bank, and S Sujesh from TVS Motors were present.