OTO Capital today announced the launch of My OMI (Ownership Monthly Installment) Plan for two wheeler buyers. My OMI Plan is the most affordable and flexible financing option for consumers to purchase two-wheelers of their choice at any dealer showroom. With the My OMI Plan, customers now have an affordable and flexible option of owning a two wheeler for a fraction of the cost which is upto 30% lower than existing two-wheeler EMIs. One of the significant causes for the recent slowdown of the automotive industry is believed to be caused by challenges in financing vehicle purchases. While the government is taking measures to boost demand, options such the My OMI Plan could bring buyer interest back on track by making it easier for customers to finance automotive purchases.
With the My OMI Plan, customers can walk into any two-wheeler showroom, get an instant approval and ride home their brand new vehicle under 30 minutes with zero paperwork. Under the plan, customers pay a low down payment, as little as INR 5000 which is refundable and OMIs (Ownership Monthly Installments) that are 30% less than loan EMIs. Customers can choose the tenure of their OMIs, which ranges from 1-3 years. At the end of the chosen tenure, customers have the flexibility to walk away with no obligation, or upgrade to another brand-new vehicle, or make a simple balloon payment to retain the same vehicle.
Buyers also get a convenient, all-inclusive OMI that includes bumper to bumper insurance and maintenance. The company has partnered with more than 100 dealers in the city, including Aryan Suzuki, Sapphire Honda, Tansi Honda, Avanish Suzuki and many more to offer customers the new financing option. OTO has already financed more than 140 two wheelers in its pilot phase in the last 45 days. Currently My OMI Plan is available to customers in Bengaluru and Mumbai and in the next one year OTO will expand into 10 other Indian cities.
Every year in India, more than Two crore two wheelers are sold, out of which, more than 50% are financed. The frequency with which new auto models are being introduced and the rise in usage of connected vehicles, is rapidly changing the vehicle ownership experience. Customers are now seeking faster access to vehicles, low-cost EMIs and quicker upgrades. OTO allows just that. By partnering with dealers, corporates and automakers, OTO is gaining popularity as the fastest-growing alternate option to vehicle loans. The company has already signed up 20 corporates where employees enjoy hassle free financing along with flexible ownership and additional tax savings.
OTO partners with Banks and NBFCs to provide the capital and offers customers with an alternative option for financing vehicle purchases. OTO provides a full auto-lifecycle management, from credit underwriting to insurance, maintenance and eventual resale of the vehicle. Partnering with OTO helps traditional and large banks to offer flexible models of ownership and incentivize the new-age buyer by offering an all inclusive package. With the slowdown in the automotive sector, partnering with OTO gives vehicle loan departments of banks an opportunity to quickly move into vehicle leasing without any change in their internal processes. OTO is enabling Banks and NBFCs to serve newer and wider set of customers who were earlier shying away from vehicle loans.