The primary goal of this collaboration is to provide OTO riders with peace of mind by easing financial burdens and enhancing financial security during unforeseen periods of fiscal duress.
16 Dec 2023 | 2980 Views | By Autocar Professional Bureau
OTO has unveiled its partnership with Flashaid, an insurtech platform (formerly known as EasyAspataal), to introduce an Embedded EMI Protection plan. This initiative addresses financial stress concerns for two-wheeler buyers seeking financing. The collaboration aims to offer users a safety net for unexpected circumstances such as health risks or job ...
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OTO has unveiled its partnership with Flashaid, an insurtech platform (formerly known as EasyAspataal), to introduce an Embedded EMI Protection plan. This initiative addresses financial stress concerns for two-wheeler buyers seeking financing. The collaboration aims to offer users a safety net for unexpected circumstances such as health risks or job losses, ensuring that EMI payments are covered during adverse situations.
The primary goal of this collaboration is to provide OTO riders with peace of mind by easing financial burdens and enhancing financial security during unforeseen periods of fiscal duress. Customers opting for vehicle financing through OTO will automatically benefit from this embedded feature, safeguarding them against missed EMIs due to unforeseen health-related or employment-related incidents.
Sumit Chhazed, Co-Founder and CEO of OTO, emphasised, “At OTO, we understand the critical issues faced by the underserved segment where cash reserves are limited, and credit repayment can become a relentless financial loop. Breaking this cycle is a moral imperative, and through our partnership with Flashaid, we are committed to empowering individuals by equipping them with the necessary aid and robust support systems to help them surmount financial risk barriers. This is a pivotal step towards achieving our stated commitment of making financial services inclusive, ensuring that everyone can access and benefit from financing without apprehension and fear of uncertainty.”
Manoj Gupta, Founder of Flashaid, outlined the partnership's objective with OTO Capital, aimed at ensuring the security of 50,000+ borrowers and a consequent 30% reduction in financial stress through the Embedded EMI Protection facility. He added, “Prioritising customer-centric financial services and acknowledging the impact of monthly loan repayments on the borrower’s mental well-being in today's fast-paced world is a reality that needs to be acknowledged and mitigated by customer-oriented companies.”
According to a recent TransUnion CIBIL report, RBI research, and a Fitch Rating study, in 2023, the average EMIs for 2-wheelers experienced a significant spike of 15-20%, attributed to escalating interest rates and rising vehicle costs. This surge in EMIs has created financial strain, with over 35% of 2-wheeler loans deemed at risk of delinquency, according to industry estimates. The potential fallout from delinquency includes looming threats of repossessions and credit score damage, posing substantial challenges to borrowers' overall financial stability, the company shared in a statement.