Hero FinCorp

Hero FinCorp, an associate company of Hero MotoCorp, is an Indian Non-banking financial company (NBFC). The company is currently engaged in consumer finance businesses and commercial lending. Consumer Finance includes financing Hero MotoCorp Two Wheeler, Loyalty Customer Loans (top up loans for existing customers) and providing Loans against property. On the commercial lending side it provides Indian corporates with a wide portfolio of financing products which include working capital loans, machine loans among others. It is a captive finance company of Hero MotoCorp Ltd.

Journey
The company was launched in 1992 as Hero Honda Finlease Ltd by extending working capital loans and medium-term finance to component suppliers and dealers of parent firm Hero MotoCorp, then called Hero Honda Motors Ltd.

In 2011, as Hero Honda Motors was restructured, the company was renamed Hero FinCorp and acquired its present form. By April 2013, the company began giving two-wheelers loans to customers. In 2014, it ventured into loans against property, loans for small and medium enterprises and commercial loans.

Two Wheeler Loan
Hero FinCorp provides financing for purchase of Hero MotoCorp two wheelers. The firm claims to have over 350,000 active two-wheeler customer loans in June 2015. It plans to be present in over 730 Hero MotoCorp dealerships by end of March 2016.

Loyalty Customer Personal Loans
Hero FinCorp provides financing options for its existing customers who have availed loans to purchase two-wheelers from Hero MotoCorp. Customers with good track record of repayment are offered a Top-up Loan, called Loyalty Personal Loan (LPL). Fulfillment through the diverse dealership network of Hero MotoCorp combined with a wide front office network is enabled.

Used Car Finance
The company has recently started financing of used cars for both salaried and self-employed individuals. The company offers customizable tenures and payment options.

Loan Against Property
The company provides loans against property to corporates, partnership firms and self-employed individuals for up to 15 years with customizable interest rates.

SME & Commercial Loans

 * 1) Bill Discounting
 * 2) Working Capital Term Loan
 * 3) Working Capital Demand Loan
 * 4) Term Loan
 * 5) Project Finance
 * 6) Acquisition Financing
 * 7) Machine Term Loan
 * 8) Medical Equipment Financing
 * 9) E-commerce Dealer Financing
 * 10) Hero MotoCorp Dealer Financing

SimplyCash - Instant Loan App
In early 2020, the company had launched SimplyCash and entered the instant cash loan segment. Millennials across 90 cities in India could download the app and avail instant cash loan as per their need.

Company Performance
Hero FinCorp recorded a turnover of Rs.298.62 crore in 2014–15.

The company has been rated as AA+ / stable by rating agencies such as CRISIL and ICRA.

External Funds Raised:

In September 2016, Hero FinCorp announced that they have raised about INR 1002 crore from internal as well as external sources.

Around INR 702 was raised from ChrysCapital, a private equity firm, and Credit Suisse, a Swiss financial services firm. The remaining INR 300 Crore, was raised from the Hero Group.

ChrysCapital will take an 11% stake in Hero FinCorp while Credit Suisse will hold around 2.5%. This transaction had valued the company around INR 5,200 crore.

The funds will be deployed to help the company achieve its growth strategy over the next 12 to 18 months. The strategy entails entering new product segments, such as home loans and used two-wheeler loans and by further augmenting existing businesses, with special focus on used car finance, consumer durable and SME lending.

Growth Plans
Hero FinCorp has achieved Rs.6,400 crore loan book by March 16.