Chola launches co-loan business with technology from Nucleus Software

Nucleus Software, the leading provider of lending and transaction banking solutions, announced that Cholamandalam Investment and Finance Company Limited (Chola), the financial services arm of the Murugappa Group, has successfully launched Nucleus’ advanced co-lending solution Software.

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. Chola has launched a new co-lending business in which the company is partnering with various banks to target higher value lending segments such as construction equipment finance and heavy duty vehicle finance. .

Chola chose Nucleus Software’s co-lending solution, drawing on the expertise of the technology powerhouse in the banking sector spanning 3 decades, on a successful experience in the realization of complex projects and on the emphasis on innovation. Chola has been a Nucleus client for over a decade with FinnOne, Nucleus Software’s award-winning lending platform, which powers the end-to-end retail lending lifecycle of the business. Nucleus Software’s advanced co-loan solution will help Chola process co-loan applications much faster, assess credit risk through a strong framework, and ensure compliance with regulatory requirements. The solution ensures a transparent flow of information and eliminates the challenges posed by the different business processes and diverse IT landscapes of multiple banks. With the Nucleus solution, Chola will be able to rapidly expand its co-lending business across its partners and other lines of business.

Mr. Ravindra Kundu (Executive Director, Cholamandalam Investment and Finance Company Limited) said, “Our mission at Chola is to empower our clients to have better lives and we continue to innovate to achieve this. We are convinced 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 this will evolve into a very successful partnership model for banks and NBFCs soon. Nucleus Software has been our trusted technological partner and their expertise in the field has enabled us to rapidly deploy the co-lending activity, despite its complexity ”.

Mr. Anurag Bhatia (SVP and Global Head Core business, Nucleus Software) said: “Chola today enjoys a unique position in the industry due to her high priority of always putting customers first and her trust. into an inherent value system. We are extremely proud of our long-standing relationship with Chola and delighted that we continue to add more value to their business with co-loan being one of the recent initiatives. Every day, 150,000 users at over 80 financial institutions use our lending solutions to provide exceptional services to millions of clients across India and we are confident that advanced digital technology will help the financial services industry to recover. more rapidly from the impact of COVID-19 ”.

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