Cholamandalam Investment And Fin. Co. Ltd

Cholamandalam Investment and Finance Company Limited (Chola) was incorporated in the year 1978 as the financial services arm of the Murugappa group, which has more than 122 years of existence. The Chennai based company is categorised as an “Upper Layer” NBFC-ICC (Investment and Credit Company). 
Chola commenced business as an equipment financing company and have since expanded operations to offer vehicle finance, loan against property, home loans, loans to small and medium-sized enterprises, consumer and small enterprise loans and secured business and personal loans. The company operates 1191 branches across 29 States and UTs with 25.10 lakh active customers throughout India as of March 2023. AUM of Rs. 1.12 lakh crores on a consolidated basis comprising Vehicle Finance (62.4%), Loan Against Property (20%), Home Loans (8%), CSEL (5%) and Others (4.6%) Chola is well diversified across India, with a branch network of less than 30% in each region.
Founded in 1900, the Murugappa Group is one of India’s leading business conglomerates. The Group has 29 businesses including ten listed Companies traded in NSE & BSE.
The Group holds leadership position in several product lines including Abrasives, Technical Ceramics, Electro Minerals, Auto Components & Systems, Power Conversion Equipment, Transformers & Reactors for the Power T&D segment, Solutions for Railways in Rolling Stock & Signalling Equipment, Bicycles, Fertilizers, Sugar, Tea and Spirulina (Nutraceuticals). The Group has forged strong alliances with leading international companies such as Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials, Yanmar & Co. and Compagnie Des Phosphat De Gafsa (CPG). It has a wide geographical presence all over India and spanning 6 continents.

As of March 2023, it has 1191 branches across 29 States and Union Territories in India.

Cholamandalam Investment and Finance Company Limited (CIFCL)  has the following offerings:

Vehicle Finance

CIFCL has more than three decades of experience in the vehicle finance industry. Apart from urban markets, it has a stronghold in Semi-Urban and Rural markets. They have a digital platform known as Gaadibazaar which deals in buying and selling new and used vehicles. They offer Two wheeler loans, commercial vehicle loans, tractor loans, cars and multi-utility vehicle loans and Construction Equipment Loans.

Loans Against Property

It enables its customers to meet working capital needs, personal needs, renovation of a property, investments, asset acquisition, consolidation of debt, mortgage buyout, and refinance of the self-financed property. 
Their customer segment focuses on the middle socio-economic class and self-employed non-professionals. They offer Business Loans against property, Microloans against property and balance transfer of existing property loans.

Home Loans

The mission of Chola home loan is to enable lower and middle-income families to fulfil their dream of owning a home in urban and semi-urban markets. They offer Self-construction loans, Loans for the purchase of resale flats/independent houses, Loans for the purchase of new flats/independent houses, Loans for Mixed Use i.e. residential with small commercial units, Home- extension loans, etc.

SME Loans

Loans are granted for Small and Medium Enterprises to grow and diversify their business. They offer financial solutions to meet short-term or long-term funding requirements. They offer Supply Chain Finance, Term Loan, Equipment Finance and Loan against Securities under this segment :

Secured Business and Personal Loan (SBPL)

SBPL offers collateral-backed business and personal loans based on the credit assessment and cash flow projections of the business. It is suitable for self-employed, non-professionals in the business of trading and services. They focus on tier II and III cities and interior rural areas The aim is to positively impact informal micro-enterprise customers in India.

Consumer and Small Enterprise Loans (CSEL)

CSEL offers collateral-free loans to consumers and micro and small enterprises. Through CSEL, Chola has entered a strategic partnership with 3 Fintech companies namely- BankBazaar, Kreditbee and Paytail.

Rating for the past 3 years:

(In ₹Crore)

1. One of the top players in the country in Vehicle Finance Segment
2. Geographically well diversified AUM across India as of March 2023
3. Increase in AUM & Profitability
4. Backed by a strong promoter group

1. High leverage of 6.81x as of March.
2. Moderate Asset Quality
3. Vehicle Finance sector remains susceptible to any economic downturn