Chola launches co-lending business

By: |
November 11, 2020 2:45 AM

The advanced co-lending solution from Nucleus Software will help Chola process the co-lending applications much faster, assess credit risk through a robust framework and ensure compliance to the regulatory requirements.

The easily scalable model will facilitate rapid business expansion and effective risk management, according to the company.The easily scalable model will facilitate rapid business expansion and effective risk management, according to the company.

Cholamandalam Investment and Finance Company (Chola), the financial services arm of Rs 38,000-crore Murugappa Group, has launched its new co-lending business. The company is in the process of partnering with various banks to target higher value loan segments such as construction equipment finance and heavy commercial vehicle finance. Co-lending lowers the cost of capital and opens new markets by enabling new loans at finer rates.

The co-lending model is an opportunity for banks and NBFCs to draw upon each other’s strengths. Co-lending will significantly bring down the cost of capital for Chola while helping partner banks to extend their reach to new customer segments, business areas and locations where Chola has a stronger presence.

Chola has chosen co-lending solution from Nucleus Software and the technology will enable seamless integration with multiple partner banks. The easily scalable model will facilitate rapid business expansion and effective risk management, according to the company.

The advanced co-lending solution from Nucleus Software will help Chola process the co-lending applications much faster, assess credit risk through a robust framework and ensure compliance to the regulatory requirements.

Ravindra Kundu, executive director, Chola, said, “We strongly believe our co-lending partnerships with banks will help us garner market share in segments where pricing has been a constraint. Co-lending is a new direction for Chola but we are confident that this will soon evolve into a very fruitful partnership model for Banks and NBFCs. Nucleus Software has been our trusted technology partner and their domain expertise ensured that we could roll out the co-lending business quickly, despite its complexity”.

The solution ensures seamless flow of information and eliminates the challenges posed by different business processes and diverse IT landscapes of multiple banks. With Nucleus’ solution, Chola will be able to scale their co-lending business quickly across partners and other lines of business, said a statement by the company.

Anurag Bhatia, SVP and global head, core business, Nucleus Software, said, “Chola enjoys a unique position in the industry today due to its strong focus on always putting customers first and reliance on an inherent value system. Every day 150,000 users at more than 80 financial institutions use our lending solutions to deliver outstanding services to millions of customers across India and we are confident that advanced digital technology will help the financial services industry recover faster from the impact of Covid-19”.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Tata Group close to acquire BigBasket for $1.6 billion; negotiation on for stake size
2Salesforce to buy workplace app Slack in $27.7 billion deal
3Yes Bank in talks with So Hum Bharat to take 9.99% stake in NUE