OTO and Flashaid in Collaboration to offer Embedded EMI Protection to 2-Wheeler Buyers
OTO riders set to benefit from stress-free experiences with their vehicle financing
Bengaluru, December 14, 2023: OTO, a pioneering digital commerce platform and a leading player in two-wheeler financing, today announced its partnership with Flashaid, an insurtech platform (earlier known as EasyAspataal) that provides pocket health cover, to provide an embedded EMI Protection plan to address financial stress concerns for riders seeking financing for 2-wheeler purchases. This will provide users with a safety net for unexpected contingencies such as health risks or job losses, ensuring that EMI payments are covered in these adverse cases.
The collaboration aims to provide riders with ease of mind by alleviating financial burdens and enhancing financial security during unexpected periods of fiscal duress. Customers can now take full benefit of this functionality when they choose to get their vehicles financed through OTO as this embedded feature will automatically ensure them against missing out on EMIs due to any unforeseen health-related or employment-incumbent mishap.
“At OTO, we understand the critical issues facing 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 our achieving our stated commitment of making financial services inclusive by ensuring that everyone can access and benefit from financing without apprehension and fear of uncertainty.” resources.”Sumit Chhazed, Co-Founder and CEO of OTO emphasized
Manoj Gupta, Founder of Flashaid, outlines the company’s partnership with OTO Capital which is aimed at ensuring the security of 50,000+ borrowers and a consequent reduction of 30 per cent in financial stress via the Embedded EMI Protection facility.
“Prioritizing 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.”.Manoj Gupta, Founder of Flashaid
As per a recent TransUnion CIBIL report, RBI research and a Fitch Rating study etc., in 2023, the average EMIs for 2-wheelers experienced a significant spike of 15-20 per cent, attributed to escalating interest rates and rising vehicle costs. This surge in EMIs has created financial strain, with over 35 per cent of 2-wheeler loans deemed at risk of delinquency, according to industry estimates. The potential fallout from delinquency includes the looming threats of repossessions and credit score damage, posing substantial challenges to borrowers’ overall financial stability.
OTO is a forward-thinking two-wheeler digital commerce platform specializing in two-wheeler financing. With a customer-centric approach and a relentless focus on innovation, OTO is reshaping the landscape of two-wheeler ownership in India. OTO’s mission is to make the dream of owning a two-wheeler a reality for every “Bharatiya”, regardless of their financial background.
Flashaid, through its platform which serves over 40,000+ users, is pioneering non-traditional health cover access for the next 200 million customers. Their technology-driven approach ensures a seamless experience, offering tailored pricing options, and making healthcare accessible to a broader audience. As the credit market surges, EMI protection with health benefits has emerged as a veritable game-changer and has considerable potential to grow. Flashaid has integrated with 5 such fintech companies and 11 digital platforms to provide protection for their borrowers and customers to protect any health-related losses.