### **Company Overview** Cholamandalam Investment & Finance Company Limited (Chola) is a leading non-banking financial company (NBFC) and a part of the 123-year-old Murugappa Group — a diversified conglomerate with operations across engineering, agriculture, and financial services. With over four decades of industry presence, Chola has evolved from an equipment and vehicle financing provider into a comprehensive digital-first financial services group serving retail customers, MSMEs, and SMEs across India. As of October 2024, the company manages **₹1.77 lakh crore** in assets under management (AUM), serves **over 42.9 lakh customers** through a network of **1,508 branches** across 26 states and 7 Union Territories, and maintains a strong focus on tier III–VI towns (91% of its presence). It has set a strategic target to grow its AUM to **₹2.07 lakh crore by 2026**, supported by digital transformation, geographic expansion, and product diversification. --- ### **Core Business Segments & Growth Highlights (as of FY25)** #### **1. Loan Against Property (LAP)** - **AUM:** Over ₹41,400 crore (Jul 2025), up from ₹29,800 crore in FY24. - **Customers:** Serves over **90,000 MSMEs**, primarily **self-employed non-professionals (97%)**. - **Collateral:** 77% of loans secured against **self-occupied residential properties**. - **Network:** Operates through **~900 branches** with over **5,600 employees**. - **Strategy:** Digitized end-to-end journey; offers Prime LAP and Micro LAP; expanding geographically and introducing flexible financing schemes. #### **2. Affordable Home Loans (HL)** - **AUM:** ₹18,427 crore in FY25 (44% CAGR over five years). - **Growth:** 59% YoY increase in AUM; disbursements grew 66% YoY to ₹6,362 crore in FY24. - **Portfolio:** 93–97% from Tier II–VI towns; average loan size of ₹13 lakhs. - **Target Segment:** Lower- and middle-income families, 83% of borrowers being business owners with semi-formal income. - **Unique Offerings:** Focus on **self-construction**, balance transfers, shop loans. - **Recognition:** Top-performing Primary Lending Institution under **PMAY (U) – CLSS** by HUDCO. #### **3. Consumer & Small Enterprise Loans (CSEL)** - **AUM:** ₹14,573–₹14,600 crore in FY25; 28% YoY growth. - **Customers:** ~14 lakh across **25 states and 4 UTs**, served through **200+ area offices** and **500+ channel partners**. - **Products:** Unsecured personal, professional, and business loans to salaried and self-employed individuals. - **Channels:** Dual model — **500+ DSAs/DSTs** and **Direct-to-Customer (D2C)** via Chola One app. - **Digital Focus:** Fully digital, paperless lending process; data-driven underwriting and strong risk management. - **Strategy:** Exiting fintech partnerships (currently 16% of portfolio) by FY26 to focus on **in-house digital lending**. #### **4. Secured Business & Personal Loans (SBPL)** - **AUM:** ₹2,422 crore (as of Mar 2025) with 62,000 live accounts. - **Average Loan Size:** ₹4.3 lakhs; average tenure of **6 years**. - **Customers:** Micro-enterprises in Tier III–VI towns with collateral and repayment capacity but excluded by traditional lenders. - **Underwriting:** Cash flow-based assessments for customers with limited formal financial history. - **Distribution:** Operates through **330 branches** (11 states); expanding to **413 by FY26**. - **USP:** **Doorstep service**, in-person income verification, digital loan journey, and products for **new-to-credit customers**. #### **5. Vehicle Finance (VF)** - **AUM:** ₹84,000 crore; serves **over 2.3 million customers**. - **Segments:** Two-wheelers, tractors, commercial vehicles, construction equipment, EVs, and used vehicles. - **Presence:** 1,334 branches and 545 resident locations; >80% branches in rural/semi-urban areas. - **Growth:** 11% YoY, 28% CAGR; RoTA of **19%**. - **Strategy:** Expanding into **Tier 4 & 5 markets**, strengthening co-lending and digital collections. Used vehicle financing accounts for ~30–33% of disbursements. #### **6. New Strategic Business Lines (2025 Focus)** - **Gold Loan Business (Chola Gold Loan):** - Launched in Apr 2025 with **120 standalone branches** equipped with vaults, RFID, and central monitoring. - Targets existing customers (30–35% already use gold loans) and **new-to-credit borrowers** (45–50% of applicants). - Product designed for emergency needs, education, and business expansion; emphasizes **fast disbursal** and **simplified processing**. - **Consumer Durable (CD) Financing:** - Launched in FY24 via partnership with OEMs; expanded to **54,000+ dealers** in 22 states by FY25. - FY25 initiative: **Open-market financing** via direct OEM tie-ups and dedicated digital platform. - Leverages Chola’s rural footprint and trust to target **aspirational, first-time consumers**. --- ### **Digital Transformation & Technology Strategy** Chola is undergoing a strategic shift from a **technology-enabled lender to a digitally native organization**, with technology embedded across the lending value chain. #### **Key Digital Platforms:** - **Chola One (Super App):** Unified digital platform for **loan origination, servicing, disbursement, and customer support**. Supports **D2C model**; enables pre-approved loans, self-service banking, and financial tracking. - **Gaadi Bazaar:** End-to-end digital auto ecosystem for **buying, selling, and auctioning** new, used, and repossessed vehicles. Achieved **#1 Google search rank** for “used truck,” with **1M+ monthly users** and **3,900+ vehicles sold/month**. - **ULI Platform:** Frictionless credit platform launched to enable **real-time, personalized lending** using digital public infrastructure (DPI). #### **Technology Initiatives:** - **Digitization:** Paperless, biometric-enabled onboarding; digital KYC, automated credit bureau checks, and system-driven underwriting. - **Data & Analytics:** Enterprise-wide **unified data repository** using columnar database; supports AI/ML models and GenAI-based credit scoring (Gen4). - **GenAI Adoption:** Deployed across **software development (coding, testing, documentation)**, personalized collections, chatbots, and customer engagement. - **Infrastructure:** Hybrid cloud model; **in-house development team** to reduce dependency on third parties. - **Security:** Robust cybersecurity with **SOC monitoring, red teaming, and multi-layer protection**. --- ### **Strategic Expansion & Ecosystem Play** - **Geographic Growth:** Aggressive expansion in **Bihar, UP, West Bengal, Odisha, Assam, Jharkhand**, focusing on tier III–VI towns to tap underserved credit demand. - **MSME Focus:** Targeting **micro, small, and medium enterprises**, including **street vendors, SHGs, and informal economy players**. Offers customized products via LAP, CSEL, SBPL, SME, and supply chain financing. - **Co-Lending Model:** Partnered with **Nucleus Software** to enable seamless co-lending with banks. Targets high-ticket segments like **construction equipment and heavy commercial vehicles**. - **SME Financing:** Offers **term loans, working capital, capex funding, equipment leasing, EV financing**, and **inventory finance for dealers** via OEM partnerships. --- ### **Innovation & Social Impact** - **Healthcare Technology:** Partnered with **IIT Madras** to develop an **AI-powered, portable Point-of-Care Ultrasound (POCUS)** scanner for maternal and child health under "Make in India." - **Raahi Drishti Kendras:** 30+ eye care centers for **commercial vehicle community members**, offering vision screening and spectacles. Part of broader **driver welfare initiative**. - **Financial Inclusion:** Focus on **first-time borrowers** (24–30% in home loans, 45–50% in gold loans), **neo-lenders**, and **unbanked MSMEs**. --- ### **Investments & Subsidiaries** - **Payswiff Technologies:** Majority-owned subsidiary (72%) providing **omnichannel payment aggregation** (mPOS, online gateways) to 300,000+ small merchants. - **Cholamandalam Securities (CSEC):** Offers **stock broking, depository services, margin trading, mutual funds, insurance, and PMS**. Serves over **28,000 active clients** (63% YoY growth in FY24). Launched a feature-rich trading app with 90+ functionalities. - **Chola Distribution:** Provides **financial product distribution**, including insurance via corporate agency licensing. --- ### **Governance & Risk Management** - **Asset Quality:** Strong improvement in Stage 3 NPAs due to **enhanced collections, legal processes**, and digital tools. Proactive delinquency monitoring at **micro-cluster level**. - **Underwriting:** Scorecard-based, data-driven models with **AI/ML and alternate data**. In-person income assessment for micro-businesses. - **Regulatory Compliance:** Dedicated **in-house compliance team (20+ professionals)** ensuring audit readiness and adherence to data privacy laws. --- ### **Financial & Operational Performance Summary (FY24–FY25 Trends)** | Metric | FY24 | FY25 (Est./Reported) | |-------|------|----------------------| | **Total AUM** | ₹1.5 lakh crore | ₹1.77 lakh crore (Oct 2024) | | **Home Loan AUM** | ₹13,404 crore | ₹18,427 crore | | **Disbursements (HL)** | ₹6,362 crore | Growth trend continuing | | **CSEL AUM** | ~₹11,300 crore | ₹14,600 crore | | **PBT (CSEL)** | ₹246 crore | Continued strong growth | | **Branch Network** | ~1,387 | 1,508 (Oct 2024) → Target: **1,703 by 2026** |