Companies

OTO Capital launches ‘My OMI Plan’ for two-wheeler purchases

Bengaluru | Updated on September 25, 2019 Published on September 25, 2019

Harsh Saruparia and Sumit Chazzed, co-founders of OTO Capital.

Customers can get instant loan under 30-minutes under the plan

OTO Capital, a retail automotive leasing start-up, launched an affordable and flexible financing option for two-wheelers buyers in Bengaluru called My OMI (Ownership Monthly Installment) Plan.

With the ‘My OMI Plan’, customers can get an instant approval of loan under 30 minutes with zero paperwork. Under the plan, customers pay a low down payment of ₹5,000 which is refundable and OMIs (Ownership Monthly Instalments) that are 30 per cent less than loan EMIs from banks.

Customers can choose the tenure of their OMIs, which ranges from 1-3 years and include insurance and maintenance. At the end of the chosen tenure, customers have the flexibility to walk away with no obligation, or upgrade to another new vehicle, or make a simple balloon payment to retain the same vehicle. The start-up has partnered with more than 100 dealers in the city, including Aryan Suzuki, Sapphire Honda, Tansi Honda, Avanish Suzuki to offer customers the new financing option.

During the pilot phase, the start-up had financed more than 140 two-wheelers. Currently, ‘My OMI Plan’ is available to customers in Bengaluru and Mumbai and in the next one year, OTO plans to offer in 10 more cities.

“We believe that My OMI Plan will be able to revive the demand in the auto industry with its affordable and flexible financing model. The current generation is seeking quicker access to vehicles, quicker upgrades and easy financing options. With OTO’s ‘My OMI Plan’, customers can not only buy their dream bike within 30 minutes but also avail extra benefits like maintenance, insurance and a flexible payback option” said Sumit Chhazed, co-founder OTO.

The start-up partners with banks and NBFCs to provide the capital offering to customers with an alternative option for financing vehicle purchases and provides full auto-lifecycle management, from credit underwriting to insurance, maintenance and eventual resale of the vehicle. “With the slowdown in the automotive sector, partnering with OTO gives vehicle loan departments of banks an opportunity to quickly move into vehicle leasing without any change in their internal processes. We enable banks and NBFCs to serve newer and wider set of customers who were earlier shying away from vehicle loans” said Chhazed.

Market size

Every year in India, more than 2 crore two-wheelers are sold, out of which, more than 50 per cent are financed, which amounts to ₹60,000 crore; 3.5 million cars are sold every year of which more than 70 per cent are financed, amounting to ₹1 lakh crore, pointed out Chhazed.

 

Published on September 25, 2019
This article is closed for comments.
Please Email the Editor