Hinduja Group is all set to enter into the car loan business in India. It received RBI approval, thus clearing its entry into the market.
The group will venture into the vehicle financing biz as a new company, Hinduja Leyland Finance (HLF) which has been set up with a starting capital of Rs. 100 crore by the promoters. The company is holding discussions with banks in order to get funding for Rs. 850 crore worth loan during the 1st year.
The promoters of HLF are the flagship company of the Hinduja Group and car manufacturer, Ashok Leyland. It has obtained registration from RBI, which will let it start with the funding of commercial and other vehicles.
The company plans to reach out across 16 states via 130 centers and wants to hike it to 300 centers in the next 3 years.
R Seshasayee, Ashok Leyland Managing Director said “HLF provides the vital link of vehicle financing, facilitating vehicle acquisition by our customers… I am confident that… HLF will prove to be a significant tool for market penetration and expansion for Ashok Leyland”.
Ashok Leyland, Ashley Holdings and Ashley Investments will be investing the start-up capital of Rs. 100 crore.