Truck maker, Ashok Leyland’s loans division Hinduja Leyland Finance, is planning to expand aggressively in two-wheeler financing, a segment that has seen the exit of several biggies because of the high default rates and thin margins. The company believes that, two-wheeler financing is a transaction driven business and is confident of managing the transaction costs, both operating and credit costs.
As against other segments, it is extremely difficult to track down a defaulter and-unlike car financing-laws don't allow banks to repossess vehicles for non-payment of dues, but Hinduja Leyland is convinced about its prospects.
