CARS24 launches credit platform to simplify loans for car buyers, owners
Apart from providing car loans, LOANS24 will also help customers track and improve credit scores and will also offer personal loans for broader financial needs.
Car marketplace CARS24 on Thursday said its lending arm, CARS24 Financial Services (CFSPL), has launched its credit platform LOANS24 to help facilitate the financing of vehicles.
The platform will be available to everyone and not just for purchases from CARS24.
As opposed to traditional loans, LOANS24 will help with fully digital and valuation-free loans for quick disbursals. It will also finance up to 100% of the on-road price for purchases or 200% for top-ups, with terms up to 6 years.
Additionally, used car loans on the platform will start at interest rates of 10.99%.
"Getting a car should feel exciting, not exhausting. But for too long, car loans have felt like a necessarily difficult process-slow, complicated, and designed to test patience. If personal loans can be instant, why should car loans still feel like a maze of paperwork and waiting? That’s what we’re fixing with LOANS24,” said Ruchit Agarwal, Co-Founder & CFO, CARS24.
Prior to launching LOANS24, CFSPL had facilitated over Rs 15,000 crore in working capital loans to dealers.
Moreover, the company notes that smaller cities are emerging as key players in the segment with more customers from these cities looking for financial support while purchasing a car.
This trend is evident in both Tier I and Tier II cities, the company noted. While Tier I cities account for 72% of total loan volumes, Tier II cities have increased their share to 26% with Tier III cities gradually adopting digital financing solutions, indicating a shifting trend due to wider technology penetration.
Additionally, the company also added that women are increasingly participating in borrowing of credit. They account for 20% of all CFSPL loans, up from 11% in 2021.
Edited by Jyoti Narayan