Cars24 to drive into personal loan space

Used cars marketplace Cars24, which has been offering financing options to customers purchasing cars from its platform, is evolving into a comprehensive lending platform, a top executive of the company told Mint.

- Samiksha Goel

The company will now offer car and personal loans to buyers beyond its platform, and will also help customers track and improve their credit scores through its newly launched platform, Loans24.

"Car buying is not a beautiful process in India, which we've been trying to solve for the last few years," said Ruchit Agarwal, co-founder and chief financial officer at Cars24.

"If someone is buying a car through our platform, we bundled the loan along with it. We also innovated a few things. For example, in 2023, we launched 100% loan to value, which means you could buy a ₹5 lakh car for a ₹5 lakh loan; you don't have to pay anything. But it was all limited to the cars that people are buying from our platform," Agarwal explained.