Chola launches co-lending business – The Financial Express


Nucleus Software’s advanced co-loan solution will help Chola process co-loan applications much faster, assess credit risk with a robust framework, and ensure compliance with regulatory requirements.

Cholamandalam Investment and Finance Company (Chola), the financial services arm of the 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 lending segments such as construction equipment financing and heavy-duty vehicle financing. Co-lending reduces the cost of capital and opens up new markets by allowing new loans at better rates.

The co-lending model is an opportunity for banks and NBFCs to leverage each other’s strengths. The co-loan will significantly reduce the cost of capital for Chola while helping partner banks expand their reach into new customer segments, lines of business and locations where Chola has a stronger presence.

Chola chose Nucleus Software’s co-lending solution 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.

Nucleus Software’s advanced co-loan solution will help Chola process co-loan applications much faster, assess credit risk with a robust framework, and ensure compliance with regulatory requirements.

Ravindra Kundu, Chief Executive Officer of Chola, said, “We strongly believe that our co-lending partnerships with banks will help us gain market share in segments where pricing has been a constraint. Co-lending is a new direction for Chola, but we are confident that it will soon evolve into a very successful partnership model for banks and NBFCs. Nucleus Software has been our trusted technology partner and their expertise in the field has allowed us to quickly deploy the co-lending business, despite its complexity”.

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

Anurag Bhatia, Senior Vice President and Global Head of Core Business, Nucleus Software, said, “Today, Chola is uniquely positioned in the industry due to its strong focus on customer centricity and its reliance to an inherent value system. Every day, 150,000 users across over 80 financial institutions use our lending solutions to deliver exceptional 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”.

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