As India's economy expanded, demand for commercial vehicles, passenger vehicles, and construction equipment surged. Chola capitalized on this by enhancing its market share in the used vehicle segment, which boasts higher yields.
The home loan segment is also on a firm upward path, with disbursements growing by 10% in the same quarter and AUM expanding by a strong 27%.
Underpinning all of Chola’s business growth is a sweeping that the company calls its “Digital Super Cycle.” Central to that effort is the Chola One super‑app, envisioned as a one‑stop‑shop for all of Chola’s financial products—from vehicle loans and home loans to insurance and gold loans. The digitized Loan Origination System (LOS) has streamlined what was once a paper‑intensive, branch‑dependent process into a largely frictionless digital journey, reducing turnaround times and improving customer experience.
A sales leap is impossible without the capital to lend. Chola managed its liability side masterfully. By diversifying its borrowing through secured bonds, securitization, and bank lines, it ensured that even when the Reserve Bank of India (RBI) tightened liquidity, Chola had dry powder. They offered interest rates that were 50-80 bps lower than stressed competitors, directly converting competitor customer inquiries into Chola sales.