Cholamandalam Investment and Finance Company, the financial arm of the Murugappa Group, has started co-lending business with technology from Nucleus Software, a provider of lending and transaction banking solutions. “Co-lending is a new direction for Chola. This will soon evolve into a very fruitful partnership model for banks and NBFCs,” said Ravindra Kundu, ED, Chola.
Chola, the financial arm of the Murugappa group, 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, said Chola in a statement.
The co-lending model is a great 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, it said.
“Co-lending is a new direction for Chola. This will soon evolve into a very fruitful partnership model for banks and NBFCs,” said Ravindra Kundu, ED, Chola.
“Chola has been a Nucleus customer for more than a decade. Every day 150,000 users at more than 80 financial institutions use our lending solutions to deliver services to millions of customers across India,” said Anurag Bhatia, senior vice president & global head core business, Nucleus Software.
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