The co-lending partnership with HDFC Bank will help Credit Wise Capital triple its monthly disbursal run rate, the non-bank lender’s chief executive officer and co-founder Gurpreet Singh Sodhi said.
Currently, the two-wheeler financing company is disbursing loans at a monthly run-rate of `40-50 crore. The firm plans to triple this in the next 1.5 years.
Earlier this month, the non-bank lender announced that it has entered into a co-lending pact with HDFC Bank for two-wheeler loans.
Through the partnership, the company plans to offer loans in tier-2, tier-3, and tier-4 towns of the country.
“The underwriting and due diligence process of HDFC Bank is very robust. The bank’s reach into rural areas and our technology driven approach bring win-win approach for all stakeholders,” Sodhi said.
Earlier, Credit Wise Capital signed a `400 crore co-lending partnership with Muthoot Capital to digitise two-wheeler financing through its artificial intelligence-based product Twin2.
The company’s partnership with Muthoot Capital is under co-lending model-1 whereas the partnership with HDFC Bank will have both co-lending model-1 and co-lending model-2.
“For us, there is a lot of opportunity to cross-sell and grow together. We are not looking for more partnerships. We have enough space to work with both our partners,” he said.
Under the co-lending model-1, the non-bank lender sources business at a prescribed ratio.
In the second model, the non-bank lender builds the book and the co-lending partner purchases this loan book.
Currently, the company provides two-wheeler loans to over 100,000 customers across India, and its assets under management stands at `430 crore.
The company plans to hit an assets under management of `650 crore by March 2024.
Going ahead, the company is planning to raise funds from institutional investors in the next one year. However, Sodhi was reluctant to disclose any quantum.
“The numbers can be discussed once the fund raise happens. As we progress, we may add on some new products in the automobile segment. Then, we will see what kind of number we will be looking at,” he said.