Vehicle finance gathered speed on the heels of resurgent demand for vehicles. Two-wheeler financing kept us buoyed throughout the year, with improved traction from our tie-up with Hero Motocorp.
This fiscal began on a subdued note, with the second surge of the pandemic and localised lockdowns and restrictions in movement. Though the impact was more muted than earlier, demand revival was affected. As the pandemic waned, demand resurfaced strongly, and several of our vehicle finance verticals did brisk business, albeit at below pre-COVID levels.
Quick facts
Total Disbursement
Gross Loan Book
Collection Efficiency
Borrower Base
Highlights of FY 2021-22
Despite the COVID headwinds, vehicle financing remained upbeat for the greater part of the year. This year, we have disbursed a total of ₹128.12 Crores to 25,449 customers in the five vehicle loan categories that we offer.
Our total portfolio size stood at ₹162 Crores. We also added preowned car financing to our portfolio this year, and extended the service of our small commercial vehicle loans across a larger number of centres. Pandemic-driven supply disruptions in the auto sector turned many buyers to the used car segment, which is expected to sustain over the longer term. Digital platforms have further heightened the excitement and visibility of this sector.
The largest share of our business came from two-wheeler loans, and our recent partnership with Hero Motocorp, added to the momentum. The tie-up has strengthened our visibility at all the major touchpoints that customers visit during the purchase process.
During the year, we also extended our dealer network with deeper penetration in the two-wheeler segment, and more than 200 dealers have been on-boarded. We are also extensively increasing our digital presence and onboarding new customers digitally. The strengthening of our digital capabilities will help us grow our business more effectively in the future, and we plan to increase our engagement with digital aggregators. Building stronger relationships with dealers, and auto OEMs, continue to be a focus area.
Outlook
We will focus on strengthening our vehicle financing business - in rural and semi-urban India, building a stronger portfolio. The emphasis will be on electric three-wheeler (E-3W) segment, which is part of mini and micro commercial vehicle category, and broaden our scope to include electric-two-wheeler (E-2W) category and used cars. We would be continuing our tie-ups with OEM partners to better our offerings.
