CHENNAI: Cholamandalam Investment and Finance Company Ltd (Chola), the financial services arm of the Murugappa Group, has partnered with service provider of lending and transaction banking solutions Nucleus Software to offer co-lending solution for customers.
Chola’s new co-lending business will allow the company 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 also viewed to significantly bring down the cost of capital for the NBFC while helping partner banks to extend their reach to new customer segments, business areas and locations.
Ravindra Kundu, executive director, Cholamandalam Investment and Finance Company Limited, 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”.
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. We are confident that advanced digital technology will help the financial services industry recover faster from the impact of Covid-19.”