online marketplace for used vehicles Cars24 on Thursday announced that it has procured a non-banking finance company (NBFC) licence from the Reserve Bank of India (RBI) and will be venturing into the consumer lending business. To provide seamless and instant access to credit, it has also announced the setting-up of a separate entity Cars24 Financial Services Pvt. Ltd under the Cars24 group, the company said in a statement.
The Gurgaon-based firm will launch its services in Delhi, Mumbai and Bengaluru the next month and will scale up to the other cities gradually. For consumers, the average ticket size of a loan would be `2.5-3 lakhs.
With less than 15 per cent penetration of financing in the used cars segment, we feel that there is a massive market opportunity that can be tapped under the financing sector,” said Vikram Chopra, co-founder and CEO, Cars24.
“We have huge latent demand already in the system due to our scale and branding, and with our first movers’ advantage in the financing business, we are hopeful to make the lives of our end users hassle free,” he said. The company is planning to hire over 200 people for its newly launched arm and is targeting loan disbursement worth $25 million within the maiden year of its launch.