Muthoot Capital Services Ltd., a part of the Thiruvananthapuram-based Muthoot Pappachan Group, is entering used four-wheeler lending as well consumer durable finance, a senior official said.
Pilot project
The company, which is running a pilot on used four- wheeler lending in Kerala, is set to roll out this service across India in a phased manner.
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“All our products are focused at the lowest income level customers who are at the bottom of the pyramid,” said Madhu Alexiouse, chief operating officer, Muthoot Capital.
“We have given them two-wheeler loans and the next aspirational products are second hand cars and consumer durables,” he said.
“So, responding to their needs, we are entering into used car and consumer durable finance,”he added.Muthoot Capital Ltd, the listed entity of the Group, has ₹16000 crore of assets under management.
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He was speaking on the sidelines of a group executive leadership team briefing here. “We will focus on used cars in the price range of ₹3-8 lakh because that is the need of that segment of customers. We will start lending for used cars in the next 2-3 months across the country,” he said.We are planning to introduce consumer durables loan in the third quarter,” he said.
The company, which is a major financier of two-wheelers had lent to 3.25 lakh customers last year. It has a loan book of ₹2,000 crore and has cumulatively financed over 12 lakh two-wheelers.