Cholamandalam Investment and Finance Company, the financial arm of the Murugappa Group, has initiated co-lending business with technology from Nucleus Software, a provider of lending and transaction banking solutions. “The co-loan is a new direction for Chola. This will soon evolve into a very successful partnership model for banks and NBFCs, ”said Ravindra Kundu, ED, Chola.
Chola, the financial arm of the Murugappa group, is partnering with various banks to target higher-value loan segments such as construction equipment financing and heavy-duty vehicle financing. · The co-loan lowers the cost of capital and opens up new markets by allowing new loans at lower rates, Chola said in a statement.
The co-lending model is a great opportunity for banks and NBFCs to build on each other’s strengths. The co-loan will significantly reduce the cost of capital for Chola while helping partner banks expand their reach to new customer segments, business areas and locations where Chola has a greater presence, he said.
“The co-loan is a new direction for Chola. This will soon evolve into a very successful partnership model for banks and NBFCs, ”said Ravindra Kundu, ED, Chola.
“Chola has been a Nucleus customer for over a decade. Every day, 150,000 users at over 80 financial institutions use our lending solutions to provide services to millions of clients across India, ”said Anurag Bhatia, senior vice president and global head of core business by Nucleus Software.