Cars24 News: Used Car Industry Leader in India to Offer Car Loans after acquiring NBFC license

The Latest News from Cars24, the market leaders in the used car selling business who were also the pioneers in introducing a systematic and simplified process in a vision to streamline the unorganized used car market in India is that the company will now also offer used car loans to the customers as well as their channel partners going forward.

Cars24 has taken a major step in making the used car buying process even simpler as they will now finance used cars after being granted a non-banking financial company (NBFC) license.

Cars24 Financial Services, a new entity, will provide loans from August onwards in three cities — Delhi, Mumbai and Bengaluru, and then expand to other parts of the country.

CEO and co-founder of Cars24, Vikram Chopra, said that this new venture is a “massive market opportunity” in the financing sector: “With less than 15% penetration of financing in the used cars segment, we feel that there is a massive market opportunity that can be tapped under the financing sector. We are delighted with this progress and intend to set a benchmark for a delightful customer experience on our platform with our new offering.”

Cars24 co-founder and CFO Ruchit Agarwal said that potential customers can easily get loan approval through the Cars24 website where customers can check if they are eligible for a loan and complete the entire documentation process. He further said that the loan will be disbursed in a few hours than weeks, as is the norm with other financial institutions.

Cars24 are targeting $25 million in loan disbursement in its very first year of the launch of its new offering, and predict that the average ticket size of the loan will be between Rs 2.5–3 lakh. Customers will be offered car loans on the value of the used car that they are purchasing. Cars24 promises competitive interest rates, while customers can also sell the car to Cars24 to repay the loan taken.

Channel partners will also be offered credit up to 1 crore under Cars24 Financial Services. More than 200 employees will be hired to kickstart Cars24 Financial Services.

Cars24 currently has 150 branches in 44 cities in India offering a wide variety of used cars for potential customers.