THEBUSINESSBYTES BUREAU

MUMBAI, FEBRUARY 3, 2026

AU Small Finance Bank (AU SFB), India’s largest Small Finance Bank and the first in over a decade to receive in-principle approval to transition into a Universal Bank, has entered into a strategic Memorandum of Understanding (MoU) with Honda Motorcycle & Scooter India (HMSI). The collaboration aims to provide customers across the country with affordable, convenient, and technology-driven financing solutions for the purchase of Honda two-wheelers.

Under the partnership, AU Small Finance Bank will act as a preferred financier for Honda two-wheelers, offering STP-enabled, analytics-based faster credit decisioning supported by the Account Aggregator framework. The bank will also provide digitally enabled repayment solutions to ensure a smoother, simpler, and more convenient financing experience for customers. In addition, the alliance includes joint marketing and promotional initiatives across HMSI dealerships and AU Small Finance Bank branches nationwide.

This collaboration is expected to help fulfil the aspirations of customers across segments, including first-time two-wheeler buyers, by enabling quicker eligibility assessments through a paperless process, thereby making vehicle ownership more accessible. Honda customers will benefit from competitive financing schemes, promotional offers, and pre-approved deals, along with end-to-end, technology-enabled loan support from AU Small Finance Bank.

At the same time, AU Small Finance Bank customers will gain access to Honda’s trusted and wide-ranging portfolio of motorcycles and scooters. The bank’s seamless system integration will enable online loan applications, real-time status tracking, and a frictionless financing journey. The tie-up also provides AU customers with direct access to HMSI’s extensive dealership network spread across India.

Commenting on the partnership, Uttam Tibrewal, Executive Director and Deputy CEO, AU Small Finance Bank, said, “Partnering with Honda Motorcycle & Scooter India marks a significant milestone in AU Small Finance Bank’s journey of expanding mobility finance across the country. Honda is one of the most trusted and aspirational two-wheeler brands in India, and this collaboration strengthens our commitment to enabling millions of customers with easier access to high-quality mobility. As we progress toward becoming a Universal Bank, such partnerships reinforce our national distribution strength, customer-first philosophy, and our ability to deliver transparent and innovative financial solutions at scale.”

Yogesh Mathur, Director – Sales and Marketing, Honda Motorcycle & Scooter India, said, “Strengthening the financing ecosystem is central to HMSI’s customer-centric approach. This collaboration with AU Small Finance Bank is aimed at enhancing the credit solutions offered to customers at HMSI dealerships across India. It will simplify the purchase journey and enable us to offer affordable and convenient financing options, while creating trust and transparency at every stage of the buying experience.”

Through this integrated operational framework, both organizations aim to maximize the effectiveness of the partnership and deliver a consistent, efficient, and customer-focused financing experience across markets.