CHENNAI: TVS Finance and Services Ltd. (TVSFS) has roped in the Department of Posts (DoP) as a franchisee to sell its loan products, signalling the evolution of a new trend in co-operation between public and private enterprises.

Under the arrangement, the DoP will reach out to people in rural and semi-urban areas to their doorstep loan products of TVSFS.

The unique service emanating from the private-public co-operation is branded as `Postman Akshaya'. The service will be launched on August 21 initially at Madurai and Tirunelveli. The service will be expanded to cover the entire State by October.

TVSFS was formerly known as Harita Finance. It acquired the present name in August 2002, when TVS Motor became a major shareholder of the company. TVS Electronics and TVS Investments are the other two major shareholders.

The TVS group outfits together are reported to be holding close to 90 per cent of the equity in TVSFS. The public holds the balance.

Addressing a press conference here on Monday, V. Ramesh, President of the company, said TVSFS had a retail loan portfolio of around Rs. 265 crore.

The new initiative `Postman Akshaya,' he said, was aimed at financing customers in rural and semi-urban areas to buy consumer durable products, TVS brand of two-wheelers and IT products.

The company had fixed a ceiling of Rs. 50,000 on the individual loan under the scheme.

Mr. Ramesh said TVSFS had entered into agreements with the makers of consumer durables and firms like HP and HCL.

To a question, he said DoP would be paid a commission for selling the loan products.

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