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HomeBusinessNBFCs see demand rising for used-vehicle financing - Times of India

NBFCs see demand rising for used-vehicle financing – Times of India


CHENNAI: Non-banking monetary firms (NBFCs) are seeing an increase in demand for used automobile financing amid Covid. The pandemicdriven desire for proudly owning second and third vehicles in households, upgrades by two-wheeler homeowners to preowned vehicles and decrease price of used autos are some major causes for the spike in demand for used autos. NBFCs providing loans for used autos are bullish about speedy progress within the present monetary yr.
One of the most important gamers within the used automobile financing section, Cholamandalam Investments & Finance (Chola) has recorded loans for used vehicles topping the record in automobile finance consecutively for three years since FY20. While the share of used automobile finance in FY21 and FY22 was 27%, a rise by 1% over FY20, it was simply 13% in FY19. In This autumn FY22 alone, the quantity of used autos that have been financed rose to round 57,000, a leap of 17,000 autos, in comparison with the yr-in the past interval.
Sundaram Finance is anticipating the section to develop steadily at 10-15% yearly post-Covid. Tata Capital Financial Services (TCFSL) has stated that the used automotive mortgage market has super potential for progress particularly in tier-2 and -3 cities.
Rajiv Lochan, MD, Sundaram Finance, stated, “Looking ahead, we see the used vehicle business growing much faster for us. Our target is to achieve 30% share of our overall disbursements from the used vehicles segment over the next three years. ”





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