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OTO Capital launched My OMI Plan for two-wheeler buyers. OMI stands for Ownership Monthly Installment. The plan works almost like a subscription model, but is a lot more flexible and more elaborate. My OMI Plan for two-wheelers has been launched in Bangalore and Mumbai for now. OTO Capital will launch the financing option in over ten cities soon.
The company claims that its plans may help the automotive industry recover from the slowdown it is currently facing. The Indian automotive industry is currently facing a slowdown that has seen sales numbers drop drastically in the last few months.
Industry leaders revealed that buyer sentiment is weak and hence people are not investing in buying an automobile. This is due to many reasons, including the switch from BS-IV to BS-VI emissions norms and the impending dominance of electric vehicles.
However, the major reason for it according to OTO Capital is the difficulty a buyer finds in financing their automobile. This is where MY OMI Plan intends to make a difference. My OMI plan has been available for four-wheeler buyers since over a year. Now, the same plan has been implemented in the two-wheeler market.
At the moment if a buyer intends to get financial assistance in the purchase of a two-wheeler, the bank will have to approve the loan. The approval process would take around 2-3 working days and then the buyer will have to pay a downpayment and then continue with paying EMIs at a predetermined rate of interest. The rate of interest too is very high at the moment.
My OMI Plan changes all of that. With OTO Capital, all a buyer has to do is logon to their website, choose the most-suitable plan and the loan will get approved within just 30 minutes. Alternatively, the buyer can go directly to a two-wheeler dealership of any brand and pick their vehicle and notify OTO Capital of their dealership.
Representatives from OTO Capital will get in touch with the dealership and approve the loan, again within 30 minutes. My OMI Plan does not involve a downpayment but only requires a deposit which is usually around 10 percent of the cost of the vehicle.
After taking delivery of the vehicle, the buyer will be required to pay an EMI every month for a period of between 1-3 years. The buyer can choose the My OMI repayment period based on convenience. Till this point, it seems like most subscription plans.
After this period is where one would find the difference with My OMI Plan. Once the period of repayment is over, the buyer has four options. The buyer can return the vehicle to OTO Capital and walk away with no obligation whatsoever. Or the buyer can upgrade to another brand new vehicle with a new OMI plan.
The buyer can also choose to make a one-shot payment and retain the vehicle or convert the balloon payment also into monthly installments. OTO Capital is offering the lowest interest rate of interest, which is 30 percent lower than the rate of interest offered by other banks.
The company has tied up with several dealerships to offer the new form of two-wheeler financing. If any dealership or brand is not included in the list of partners, buyers can give a missed call to OTO's helpline number and representatives from the company will take care of the loan requirements. With this unique financing option, OTO is also offering insurance and maintenance.
Thoughts On OTO Launching MY OMI Plan Smart Financing Option For Two-Wheelers
India is the largest two-wheeler market in the world, and over 50 percent of the two-wheelers on our roads are bought through loans. However, these loans only help the buyer get the vehicle, but actually do not help with its maintenance, and the risk of resale remains on the buyer.
With OTO Capital's My OMI Plan though, this risk no longer exists. This is the perfect two-wheeler finance option for those who intend to upgrade from their vehicle once in two or three years.