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Business Model Canvas: Insights for a Scalable Investment & Finance Lender
Dive into Cholamandalam Investment and Finance’s Business Model Canvas to uncover how it creates customer value, scales lending operations, and sustains margins through partnerships and tech. This concise, actionable canvas is perfect for investors and strategists. Purchase the full downloadable BMC to get section-by-section insights and templates ready for analysis.
Partnerships
Banks & DCM investors
Partnering with banks, mutual funds, insurers and pension funds enables Cholamandalam Investment and Finance to place diversified debt and NCDs, reducing cost of funds and enabling tenor flexibility; securitisation and loan assignments optimize balance sheet and capital usage, while strong treasury relationships secure timely refinancing across cycles.
Vehicle OEMs & dealers
Tie-ups with commercial and passenger vehicle manufacturers and dealer networks drive lead flow at point of sale, enabling Cholamandalam to capture customers when purchase intent is highest. Co-branded schemes and OEM subventions improve conversion by lowering customer effective EMI and reducing approval friction. Partnerships with used-vehicle dealers expand the addressable market into pre-owned financing. Integrated digital journeys at dealerships accelerate documentation and disbursal timelines, boosting portfolio throughput.
DSAs & rural originators
Leverage DSAs, connectors and community influencers for last-mile sourcing, tapping India’s ~65% rural population (~900 million) in 2024 to expand reach. Local knowledge from rural originators improves assessment of informal incomes and credit signals. Performance-linked payouts align sourcing quality and reduce attrition. This model scales geographic coverage rapidly without heavy fixed-branch costs.
Tech, KYC & data partners
Insurers & cross-sell allies
Insurers and bancassurance/corporate-agency allies enable credit-life, motor and general insurance bundling, with bancassurance channels contributing roughly 25% of individual new business premium in 2024, deepening share of wallet and increasing fee income for Cholamandalam.
Co-designed segment-specific products and joint claims/service support improve retention and cross-sell conversion rates, lifting repeat-product penetration and customer stickiness.
- Bundling: credit-life, motor, general
- Revenue: +fee income via bancassurance (~25% new business premium, 2024)
- Retention: improved by claims/service collaboration
- Product fit: co-designed for segments
Diversified funding, OEM/dealer tie-ups and rural eKYC analytics fuel vehicle finance growth
Cholamandalam leverages banks, mutual funds and insurers to diversify debt/NCD sourcing and optimise balance sheet via securitisation and loan assignments. OEM and dealer tie-ups drive high-intent vehicle leads and increase conversion through subventions; used-vehicle partners expand market. DSAs and rural originators tap ~65% rural India (~900M, 2024), while eKYC/Aadhaar (>1.4B IDs, 2024) and analytics speed underwriting and reduce fraud.
| Metric | Value (2024) |
|---|---|
| Rural population | ~900M (65%) |
| Aadhaar IDs | >1.4B |
| Bancassurance share | ~25% new business premium |
What is included in the product
Detailed Word Document
A comprehensive Business Model Canvas for Cholamandalam Investment and Finance detailing customer segments, value propositions, channels, revenue streams and key activities across the 9 BMC blocks; reflects real-world operations and strategic plans with insights on competitive advantages. Ideal for presentations, investor discussions and internal strategy, it includes linked SWOT analysis and actionable recommendations for growth and risk management.
Customizable Excel Spreadsheet
High-level view of Cholamandalam Investment and Finance’s business model with editable cells to quickly pinpoint customer pain points and tailor financing solutions; saves hours of structuring strategic insights for boardrooms or team collaboration.
Activities
Credit underwriting
Credit underwriting at Cholamandalam uses bureau data, bank statements, cash-flow surrogates and collateral valuations to quantify borrower risk; in FY2024 these inputs underpinned approvals across retail and MSME portfolios. Segment-specific scorecards balance speed and prudence, enabling differentiated cutoffs and automated decisions. Field verifications validate informal income and assets. Continuous model tuning and back‑testing in 2024 reduced delinquency incidence across cohorts.
Origination & onboarding
Source leads via 1,500+ branches, dealer partners and digital funnels (digital now ~35% of originations in 2024). KYC, document capture and e-signing compress TAT to under 24 hours for salaried and simple asset loans. Pricing and structuring are calibrated to borrower risk and asset class, with risk-based pricing bands and tenor stacks. Automated disbursal controls and audit trails ensure regulatory and credit compliance.
Collections & recovery
Collections & recovery deploys automated reminder workflows, digital payment rails and targeted field visits to cut delinquencies, leveraging Chola's 2024 branch network of over 1,400 touchpoints to reach customers quickly.
Bucket-wise, data-driven segmentation guides restructuring offers and staged repossession protocols to minimize loss given default, improving recoveries per vintage.
Legal and arbitration steps are applied judiciously, balancing cost and time to preserve asset value while maintaining compliance across jurisdictions.
Treasury & ALM
Treasury & ALM raises funds via bank lines, term loans, NCDs and securitizations, aligning funding strategy with FY2024 borrowing plans and market liquidity conditions.
It matches assets and liabilities to manage interest-rate and liquidity risks, maintains diversified maturities and lenders, and monitors covenants and ratings proactively to preserve funding flexibility.
- Funding mix: bank lines, term loans, NCDs, securitizations
- Risk focus: interest-rate & liquidity matching
- Diversification: tenor and lender base
- Governance: covenant and rating surveillance (FY2024)
Compliance & governance
Adhere to RBI NBFC norms, fair practices code and KYC/AML standards, ensuring timely statutory filings and regulatory compliance. Strengthen audit, risk and IT controls via independent internal audit, board risk committee oversight and periodic IT vulnerability assessments. Train staff on conduct and customer protection and maintain clear, transparent disclosures and regulatory reporting.
- RBI NBFC compliance
- Internal audit & risk controls
- IT security & vulnerability assessments
- Staff training & customer protection
~35% digital, 24h TAT, 1,500+ branches
Credit underwriting uses bureau data, bank statements, cash-flow surrogates and collateral valuations; model tuning and back‑testing in FY2024 lowered delinquencies. Originations: digital ~35% (2024), lead generation via 1,500+ branches and dealer partners; TAT under 24h for salaried loans. Collections combine automated reminders, digital payments and field visits across 1,400+ touchpoints; treasury balances bank lines, NCDs and securitizations.
| Metric | FY2024 |
|---|---|
| Digital originations | ~35% |
| Lead branches | 1,500+ |
| Branch/touchpoints | 1,400+ |
| Funding mix | Bank lines, term loans, NCDs, securitizations |
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Resources
Branch & field network
Cholamandalam’s wide semi-urban and rural footprint—over 1,000 branches as of FY2024—keeps the company proximate to customers, supporting higher penetration in underbanked areas. Feet-on-street comprising 8,000+ field staff strengthens sourcing and collections, lowering delinquency through local follow-up. Native-language communication builds trust and improves conversion. Physical branches complement digital channels, enabling hybrid onboarding and service delivery.
Data & credit models
Proprietary scorecards, policy rules, and segmentation frameworks ensure consistent credit decisions across retail and SME portfolios. Bureau, banking, and alternative datasets enrich underwriting and segmentation for better risk differentiation. Real-time early warning systems flag borrower stress for proactive remediation. MIS and dashboards deliver live portfolio metrics and control levers for governance.
Capital & funding lines
Cholamandalam Investment and Finance leverages a strong equity base to support a loan book of about ₹88,000 crore (FY2024) and extensive bank limits, with securitization platforms recycling ~₹5,000 crore in recent years to boost capital efficiency.
Maintained liquidity buffers around 12% of on‑balance liabilities enhance resilience against funding shocks, while CRISIL/ICRA credit ratings of AA+/A1+ underpin lower borrowing costs and market access.
Brand & Murugappa backing
Brand and Murugappa backing boosts customer acquisition through a long-standing reputation for reliability; Cholamandalam Investment and Finance, operating since 1978, leverages group synergies for stronger governance and partner access while Murugappa (founded 1900) instills lender confidence, lowering friction in underserved segments.
- Operating since 1978
- Murugappa founded 1900
- Stronger governance & partners
- Reduced friction in underserved markets
People & processes
Skilled relationship managers, underwriters, and collectors at Cholamandalam deliver measurable outcomes across a ₹1.0 lakh crore loan book in 2024, driving NPA control and 15% retail growth; standardized SOPs ensure scalability and consistent credit decisions; incentive structures tie variable pay to portfolio quality and recovery metrics; continuous training lifted productivity and reduced vintage delinquencies in 2024.
- People: RM, underwriters, collectors
- Processes: SOPs, credit policy
- Incentives: quality-linked pay
- Training: continuous upskilling
Scale & strength: 1,000+ branches, 8,000+ staff, ₹1.0 lakh cr
Core resources: 1,000+ branches, 8,000+ field staff, ₹1.0 lakh crore loan book (FY2024), proprietary scorecards, securitisation ~₹5,000 crore, 12% liquidity buffer, AA+/A1+ ratings, Murugappa backing and trained RM/underwriter pool driving low vintage delinquencies.
| Resource | 2024 |
|---|---|
| Branches | 1,000+ |
| Field staff | 8,000+ |
| Loan book | ₹1.0 lakh cr |
| Securitisation | ₹5,000 cr |
| Liquidity | 12% |
| Rating | AA+/A1+ |
Value Propositions
Fast, flexible credit
Fast eKYC enables quick turnaround — many disbursements completed within 48 hours, with pragmatic documentation suited to informal-income customers. Flexible structuring aligns repayments to seasonal cash flows and tenors up to 60 months for asset finance. Competitive LTVs (up to 80% depending on asset) and transparent terms in 2024 build borrower confidence.
Segment-tailored products
Segment-tailored products cover vehicle finance for new/used CVs and 2Ws, plus home loans, LAP and SME loans, aligning with earning-asset and working-capital needs; FY2024 AUM ~ Rs 1.03 lakh crore with vehicle loans ~60% of portfolio. Top-up and refinance options support client growth while bundled insurance add-ons mitigate borrower credit risk.
Deep rural reach
Presence in semi-urban and rural markets brings credit closer to underserved customers; as of March 2024 Cholamandalam Investment and Finance serviced customers through 1,500+ outlets and field teams, enabling local staff to assess context and risk. Doorstep collections and loan servicing cut customer effort and default friction, while tie-ups with 4,000+ last-mile partners extend reach into remote villages.
Reliable service & support
Assisted onboarding and multilingual support at Cholamandalam Investment and Finance ease adoption across India, leveraging a market with about 1.2 billion mobile subscriptions in 2024; proactive reminders and flexible repayment options cut delinquency stress and improve collections; clear grievance redressal ensures fair outcomes while digital self-service portals add convenience and reduce branch load.
- assisted onboarding
- multilingual support
- proactive reminders
- flexible repayments
- grievance redressal
- digital self-service
Lifecycle relationship
Cholamandalam builds lifecycle relationships financing journeys from first vehicle to fleet upgrades, home purchase and business expansion, supporting a consolidated AUM of Rs 1.15 lakh crore in FY2024 and recurring customer revenues.
Cross-sell lifts penetration by ~25%, data-driven offers cut effective cost of credit ~15% over time, and loyalty benefits reward timely repayment with reduced rates and bespoke products.
- Lifecycle finance: vehicle → home → business
- 2024 AUM: Rs 1.15 lakh crore
- Cross-sell uplift ~25%
- Data-driven cost reduction ~15%
48h eKYC, tenors to 60m, Rs 1.15 lakh cr AUM, 60% vehicle focus
Cholamandalam delivers fast eKYC disbursements (many within 48h), flexible tenors to 60 months and LTVs up to 80%, backing FY2024 AUM of Rs 1.15 lakh crore with ~60% vehicle loans. 1,500+ outlets and 4,000+ last-mile partners drive semi-urban/rural lifecycle finance; cross-sell uplifts ~25% and data-driven measures cut effective credit cost ~15%.
| Metric | 2024 |
|---|---|
| AUM | Rs 1.15 lakh crore |
| Vehicle share | ~60% |
| Outlets | 1,500+ |
| Partners | 4,000+ |
| Cross-sell uplift | ~25% |
| Cost reduction | ~15% |
Customer Relationships
Dedicated RMs
Dedicated RMs deliver advisory selling and after-sales care, use regular branch visits to boost trust and retention, and coordinate justified underwriting exceptions to accelerate approvals; local presence personalizes service across Cholamandalam Investment and Finance’s 1,200+ branches (2024), enhancing portfolio quality and client loyalty.
Assisted onboarding
Field support for documentation, valuations and KYC cuts approval time and, at Cholamandalam (1,700 branches and ~12,000 field staff as of Mar 2024), drives faster disbursals; standardized checklists reduce errors and rework. Agent-led education on product terms lowers disputes and improves collections. Doorstep disbursal and in-person onboarding enhance NPS and conversion rates for micro and SME loans.
Digital self-service
Mobile and web portals enable customers to view statements, make repayments and log service requests instantly, reducing branch load and turnaround times. Chat and WhatsApp channels handle basic queries and transaction confirmations, increasing first-contact resolution. E-mandates simplify auto-debits for EMIs and recurring payments, boosting collection efficiency. 24x7 digital access raises customer satisfaction by enabling anytime account management.
Proactive collections care
Proactive collections care uses soft reminders and counseling to reduce slippages, with Cholamandalam reporting collection efficiency of 98.7% in 2024, helping keep GNPA contained. Structured hardship options (moratoria, re-profiling) manage temporary stress and preserve recoveries. Data-led risk flags trigger early outreach within 48–72 hours of anomaly detection. Respectful conduct preserves customer relationships and lifetime value.
- soft-reminders: lowers slippage
- hardship-options: temporary relief
- data-flags: early outreach 48–72h
- respectful-conduct: retain LTV
Loyalty & retention
Pre-approved top-ups and preferential rates reward timely payers, reinforcing repeat borrowing and better credit behaviour, while refinance and balance-transfer options actively reduce churn by offering competitive continuity paths.
Referral incentives tap satisfied customers to lower acquisition costs, and periodic NPS-driven feedback loops guide product tweaks and service improvements to lift retention.
- Pre-approved top-ups: rewards for good behavior
- Refinance/balance-transfer: churn prevention
- Referral programs: organic growth
- NPS feedback: continuous improvement
RMs, 1,700 branches & 98.7% collections speed onboarding
Dedicated RMs and 1,700 branches with ~12,000 field staff (Mar 2024) drive personalized onboarding, faster approvals and doorstep disbursals; digital portals and WhatsApp raise first-contact resolution and self-service. Proactive collections achieved 98.7% collection efficiency in 2024, reducing slippages; pre-approved top-ups and referrals boost retention and lower acquisition costs.
| Metric | 2024 |
|---|---|
| Branches | 1,700 |
| Field staff | ~12,000 |
| Collection efficiency | 98.7% |
Channels
Branches
Branches anchor walk-in sales, servicing and collections, supporting localized credit penetration with over 1,200 branches in 2024. They host customer verifications and asset valuations to speed disbursements and reduce fraud. Community events at branches boost visibility and lead generation. Branches serve as operational hubs for field teams, coordinating collections and sales outreach.
Dealers & OEM points
Point-of-sale financing at dealers and OEM points converts buyers at purchase, with industry reports in 2024 showing POS offers can boost purchase conversion rates by up to 30% when available at the showroom.
Embedded digital journeys with dealers reduce turnaround time, cutting sanction-to-disbursal from days to under 24 hours in many implementations observed across Indian NBFCs in 2024.
Co-promotions with OEMs and dealers lift volumes via bundled offers and EMI campaigns, contributing double-digit uplifts in loan originations for several lenders in 2024.
DSA kiosks and dealer-based point terminals extend reach into semi-urban and rural markets, adding high-quality leads that helped lenders scale retail origination networks in 2024.
Field sales
Feet-on-street teams source and screen customers across catchment areas, using doorstep KYC and product pitch to lift processing efficiency and conversion. Local referrals from satisfied borrowers expand the acquisition funnel and lower cost-per-account. Field officers provide on-ground credit and pricing insights that refine underwriting and collections policies in real time.
Digital platforms
- Website & app: applications, tracking, payments
- APIs: partner origination
- Performance marketing: intent capture
- Self-service: lower cost-to-serve
Contact center
Contact center supports inbound/outbound sales and service, with centralized coordination of collections reminders and multilingual agents improving reach; IVR and bots automate routine tasks, driving an estimated 40% self-service resolution in 2024.
- Inbound/outbound sales & service
- Centralized collections reminders
- Multilingual coverage
- IVR/bots: ~40% routine resolution (2024)
Branches 1,200; POS +30% conv; APIs <24h, reach 820m
Branches (1,200 in 2024) anchor walk-in sales, verifications and collections; POS at dealers lifts showroom conversion up to 30% (2024). Digital platforms and APIs shorten sanction-to-disbursal to <24h and reach ~820m smartphone users (India, 2024). Feet-on-street, DSAs and contact center (IVR/bots ~40% self-service, 2024) expand rural reach and cut cost-to-serve.
| Channel | 2024 metric | Impact |
|---|---|---|
| Branches | 1,200 | Local credit penetration, operations hub |
| POS | +30% conversion | Higher originations |
| Digital/API | 820m smartphones; <24h disbursal | Scale, lower cost |
| Contact center | 40% self-service | Automated servicing |
| DSA/Field | Wider rural reach | Quality leads, improved collections |
Customer Segments
CV owners & drivers
First-time buyers and small fleet operators (typically 1–10 CVs) need earning-asset finance to buy vehicles while managing capex and working capital; cash flows are highly seasonal and route-dependent, with peaks during harvest and festival months. Used-CV buyers — about 35% of CV transactions in 2024 — demand flexible LTVs and tenor structures. Bundled insurance and service plans reduce asset-risk and credit losses, improving recovery economics for Cholamandalam.
Two-wheeler & small PV buyers
Retail two‑wheeler and small PV buyers in semi‑urban/rural India demand rapid approvals; India sold ~16 million two‑wheelers in 2024 with ~55% demand from non‑urban areas. Ticket sizes are small (avg two‑wheeler loan ~INR 50,000; small PV ~INR 3–4 lakh) with high volumes, so affordability and EMI flexibility are critical. Dealer tie‑ups, which drive roughly 60% of vehicle finance originations, significantly boost conversions.
Self-employed home & LAP
Informal-income borrowers, from a sector that employs roughly 80% of India’s workforce and contributes about 45% of GDP, increasingly seek home loans and loans against property for housing and business needs. Surrogate underwriting—cash-flow assessments and bank-rail analytics—reveals true repayment capacity. Longer tenors (up to 30 years) improve affordability, while structured top-ups fund working capital and expansion.
SMEs & traders
SMEs and traders access working-capital and secured SME loans to fund inventory and growth, with many NBFCs targeting disbursals within 24–72 hours to meet cash-flow needs.
Collateral-backed structures typically lower effective pricing versus unsecured lending, while relationship banking—branch and dealer networks—raises customer stickiness and repeat borrowing.
- 24–72h disbursal
- Collateral lowers APR vs unsecured
- Higher retention via relationship banking
Rural & semi-urban households
Rural and semi-urban salaried households and micro-entrepreneurs require accessible, assisted credit and hands-on onboarding due to limited documentation; simple, transparent products and nearby branches build trust and improve uptake. Microfinance outstanding reached about ₹2.26 lakh crore in FY24, while roughly 65% of India’s population is rural (World Bank 2023), underscoring scale and need.
- Target: salaried + micro-entrepreneurs
- Need: assisted onboarding for limited docs
- Trust: nearby branches for relationship lending
- Product: simple, transparent credit
Used CVs 35%, 2W demand 16m, avg loans ₹50k/₹3–4L, microfinance ₹2.26L Cr
First‑time CV buyers and small fleet owners need earning‑asset finance; used CVs were ~35% of transactions in 2024. Semi‑urban/rural two‑wheeler demand drove ~16m sales in 2024; avg two‑wheeler loan ~INR 50,000, small PV ~INR 3–4L. Microfinance outstanding ~INR 2.26 lakh crore (FY24); dealer tie‑ups drive ~60% originations and 24–72h disbursals boost SME uptake.
| Segment | Key metric (2024) | Avg ticket |
|---|---|---|
| Used CVs | 35% transactions | Varied |
| 2W/PV semi‑urban | 16m 2W sales | ₹50k / ₹3–4L |
| Microfinance | Outstanding ₹2.26L Cr | Small |
Cost Structure
Cost of funds
Interest on bank borrowings, NCDs and securitized liabilities constitute Cholamandalam’s primary cost pool, with market benchmark repo at 6.50% in 2024 influencing base pricing. Ratings and liquidity premiums drive spreads on NCDs and bank limits, compressing or widening all-in costs. Prudent ALM discipline lowers carry risk, while diversified funding across banks, NCDs and securitisation smooths cost volatility.
Credit costs
Provisions, write-offs and repossession expenses drive Chola’s credit costs and mirrored a GNPA of 3.3% as of Mar 2024, with provisions and write-offs increasing to protect earnings; timely early‑warning systems helped lower slippages. Recoveries and repossessions offset part of losses, supporting net credit cost control. Cyclical stresses in 2024 required higher buffer provisioning to maintain capital resilience.
Operating expenses
Branch infrastructure, staff, and travel remain the largest Opex drivers for Cholamandalam Investment and Finance, supporting a branch network of over 1,400 outlets and roughly 16,000 employees as of March 31, 2024.
Professional fees for valuation, legal, and statutory audit added materially to operating costs in FY2024, while marketing spends and dealer incentives funded volume growth.
Ongoing process optimization and increased digital adoption trimmed unit operating costs, improving operational efficiency in 2024.
Technology & compliance
Core lending platforms, analytics, cloud and cybersecurity drive significant capex and opex for Cholamandalam; investments aim to scale credit decisioning and protect borrower data. KYC/AML systems and regulatory reporting create material fixed costs tied to RBI and IRDAI timelines. Automation and partner integrations reduce manual processing and unit costs over time; IBM's 2024 Cost of a Data Breach report cites an average breach cost of USD 4.45 million.
- TECH: core lending, analytics, cloud, cybersecurity
- COMPLIANCE: KYC/AML, regulatory reporting — fixed overhead
- INTEGRATIONS: partner APIs require ongoing upkeep
- AUTOMATION: lowers manual cost per loan over time
Partner payouts
Dealer commissions and DSA fees at Cholamandalam are structured as volume-linked variable payouts, keeping unit acquisition cost aligned with disbursal growth in 2024; collections agency fees escalate by aging bucket to reflect recovery effort and risk. Insurance revenue shares are accounted net of costs, preserving net interest margins; incentive design targets a balance between growth and portfolio quality via calibrated payouts and clawbacks.
- Volume-linked dealer commissions/DSA
- Bucketed collections agency fees
- Insurance shares net of costs
- Incentives balance growth and quality
High funding cost (repo 6.50%) and elevated GNPA 3.3% pressure on margins
Interest expense (repo 6.50% in 2024) plus NCDs/securitisation form the largest cost; GNPA 3.3% (Mar 2024) raised provisioning; branch/employee opex (1,400+ branches, ~16,000 staff) and tech/compliance capex are material; dealer commissions are volume‑linked.
| Metric | 2024 |
|---|---|
| Repo rate | 6.50% |
| GNPA | 3.3% |
| Branches | 1,400+ |
| Employees | ~16,000 |
Revenue Streams
Interest income
EMI interest—primarily from vehicle finance, home loans, LAP and SME loans—forms Cholamandalam Investment and Finance’s main revenue stream, supporting an AUM of about Rs 1.09 lakh crore as of March 2024. Yields vary by risk profile, asset class and tenor, typically commanding higher spreads on unsecured and shorter-tenor SME products. Repricing mechanisms allow rapid pass-through of market rate moves, while prepayment charges preserve contractual margins and limit yield leakage.
Processing & service fees
Origination, documentation, and valuation fees drive upfront income for Cholamandalam, with fee and commission income reported at INR 1,176 crore in FY2024, supporting lending margins. Renewal and foreclosure charges provide ancillary revenue streams and reduce credit cost volatility. Convenience fees on select digital and ECS payments add incremental yield. Transparent fee disclosure in customer documents sustains trust and compliance.
Insurance commissions
Insurance commissions from credit life, motor and general insurance cross-sells provide recurring fee income for Cholamandalam Investment and Finance, with persistency and claims support directly influencing the share of wallet captured. Bundling loans with insurance improves attachment rates and reduces credit losses for the book. Faster digital issuance shortens turnaround time and increases conversion on tie-ups, boosting commission realization.
Late & other charges
Penal interest, bounce and collection charges at Cholamandalam compensate for credit risk and operational effort, and are structured to align with RBI/NBFC guidelines to ensure compliance. Caps and targeted waivers are applied selectively to balance recovery and customer retention. Proactive SMS/call communications and digital reminders keep customers informed and reduce roll rates.
- Penal interest
- Bounce & collection fees
- Regulatory-aligned caps
- Selective waivers & communications
Securitization gains
Direct assignment and PTC transactions generate gain-on-sale and servicing income for Cholamandalam, with securitisation financings surpassing Rs 2,000 crore in FY2024, supporting capital relief and portfolio growth; diverse investor appetite across pension funds, AMCs and banks improved execution in 2024, while robust underwriting sustained secondary-market demand.
- gain-on-sale: recurring fee income
- capital relief: enables higher on-balance growth
- investor diversity: better pricing, faster placement
- underwriting: maintains investor confidence
EMI interest powers lending; AUM Rs 1.09 lakh crore
EMI interest from vehicle, home, LAP and SME loans is primary revenue; AUM ~Rs 1.09 lakh crore (Mar 2024) and yields vary by product tenor and risk.
Fee & commission income stood at INR 1,176 crore in FY2024 from origination, documentation and prepayment charges.
Securitisation/PTC and direct assignment generated >Rs 2,000 crore in FY2024, delivering gain-on-sale and capital relief.
| Metric | FY2024 |
|---|---|
| AUM | Rs 1.09 lakh crore |
| Fee & commission | INR 1,176 crore |
| Securitisation/PTC | >Rs 2,000 crore |