The partnership is aimed at making bicycles easily accessible to poorer households through the availability of microfinance facilities, an official statement said.
Under the scheme, Hero Cycles has made separate bicycle models available for women and men.
Through this arrangement, Muthoot Microfin’s over 6,00,000 clients across 150 branches in Tamil Nadu will have access to affordable mobility through Hero Cycles.
Hero Motors Chairman and Managing Director Pankaj M Munjal said: “Bicycles are often an underrated yet powerful tool of empowerment for the marginalized. Making bicycles easily accessible to a large number of people can bring about significant improvement in the state of their livelihoods and earnings.”
Unfortunately, gathering enough money to spend on buying a bicycle remains a challenge for a large number of households despite it being the most affordable mode of transport, he said, adding that providing microfinance is therefore one of the most viable ways to increase penetration of bicycles among the rural and urban poor.
For micro entrepreneurs, owning a bicycle can boost their earnings by expanding their catchment areas for work, he said.
“We have had similar arrangements with microfinance providers in the past. We are happy to be part of another such initiative that will empower the rural and urban poor,” Munjal added.
Speaking on the initiative, Muthoot Microfin CEO Sadaf Sayeed said: “Together we aim to empower our clients with access to mobility. Muthoot Microfin has been fostering a spirit of entrepreneurship by providing timely credit to more than 1.8 million women across India and with this partnership we are further enabling clients to earn their livelihood.”
A study undertaken by The Energy and Resources Institute (TERI) and All India Cycle Manufacturers’ Association estimated that for marginal unskilled workers who walk to work every day, a 50 per cent substitution of walking trips above the average distance of 3.5 km can result in travel time savings worth Rs 112 billion collectively.
